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Ce 150 - Lec2
Ce 150 - Lec2
AND
SPECIFICATIONS
CONTRACTS
Civil Code of the Philippines
(R.A. 386)
CHAPTER 1
GENERAL PROVISIONS
•Article 1305
A contract is a meeting of
minds between two persons
whereby one binds himself,
with respect to the other, to
give something or to render
some service. (1254a)
General Provisions
•Article 1317
No one may contract in
the name of another
without being authorized
by the latter, or unless he
has by law a right to
represent him.
CHAPTER 2
ESSENTIAL REQUISITES OF CONTRACTS
•Article 1318
There is no contract unless the following
requisites concur:
(1) Consent of the contracting
parties;
(2) Object certain which is the subject
matter of the contract;
(3) Cause of the obligation which is
established.
SECTION 1 – Consent to Contract
•Article 1319
Consent is manifested by the meeting
of the offer and the acceptance upon
the thing and the cause which are to
constitute the contract. The offer
must be certain and the acceptance
absolute. A qualified acceptance
constitutes a counter-offer.
Consent
•Article 1320
An acceptance may be express or
implied.
•Article 1321
The person making the offer may fix the
time, place, and manner of acceptance,
all of which must be complied with.
Consent
•Article 1327
The following cannot give consent to a
contract:
•Article 1332
When one of the parties is unable to
read, or if the contract is in a language
not understood by him, and mistake or
fraud is alleged, the person enforcing the
contract must show that the terms
thereof have been fully explained to the
former. (n)
Consent
• Article 1337
There is undue influence when a person takes
improper advantage of his power over the will
of another, depriving the latter of a reasonable
freedom of choice. The following circumstances
shall be considered: the confidential, family,
spiritual and other relations between the
parties, or the fact that the person alleged to
have been unduly influenced was suffering from
mental weakness, or was ignorant or in financial
distress. (n)
SECTION 2 - Object of Contracts
•Article 1347
All things which are not outside the
commerce of men, including future
things, may be the object of a contract.
All rights which are not intransmissible
may also be the object of contracts.
No contract may be entered into upon
future inheritance except in cases
expressly authorized by law.
Object
•Article 1348
Impossible things or services cannot
be the object of contracts.
Reformation of Instruments
•Article 1363
When one party was mistaken and
the other knew or believed that the
instrument did not state their real
agreement, but concealed that fact
from the former, the instrument
may be reformed.
Reformation of Instruments
•Article 1364
When through the ignorance, lack of
skill, negligence or bad faith on the
part of the person drafting the
instrument or of the clerk or typist,
the instrument does not express the
true intention of the parties, the
courts may order that the
instrument be reformed.
Reformation of Instruments
•Article 1366
There shall be no reformation in the
following cases:
•Article 1369
The procedure for the reformation of
instrument shall be governed by rules of
court to be promulgated by the Supreme
Court.
CHAPTER 5
INTERPRETATION OF CONTRACTS
•Article 1370
If the terms of a contract are clear and leave no
doubt upon the intention of the contracting
parties, the literal meaning of its stipulations
shall control.
• RESCISSIBLE CONTRACTS
• VOIDABLE CONTRACTS
• UNENFORCEABLE CONTRACTS
• RESCISSIBLE CONTRACT
“A” is the guardian of “B”, a minor. “A”
sells to “C” the property of “B” worth 2M for
only 1M.
By virtue of the contact of sale, “B” suffered
damages by more than ¼ the value of his
property. “B’s” remedy is to rescind the sale
made by “A” to “C” before a court of
competent jurisdiction upon reaching the age
of majority.
Defective Contracts
• VOIDABLE CONTRACT
Voidable contract is valid until annulled. It
cannot however, be annulled if there has been
ratification.
• Scope of contract
• Terms of contract
• Plans and Specifications
• Workmanship
• Materials
• Conduct of work
• Contractual changes
General Conditions
• Payments
• Extra-work
• Contractors risks and obligations
• Rights of way
• Inspection of the work
• Engineer’s authority