Law

• 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.
• A contract is an agreement whereby one person binds herself to fulfill an obligation in favor of another.
• Contracts are obligatory in whatever form as long as all the essential requisites for their validity are present: object, consent, and cause.
• There are three distinct stages of a contract: preparation or negotiation, perfection, and consummation.
• Negotiation begins when the would-be contracting parties express their interest in the contract, and ends at the moment of their agreement.
• The perfection or birth of the contract occurs when the parties agree upon the essential elements of the contract.
• The last stage is its consummation, wherein the terms agreed upon in the contract are fulfilled or performed, resulting to its extinguishment.
• The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.
• The contracting parties are given the liberty and freedom to agree on stipulations, clauses, terms and conditions as they may deem convenient.
• Such stipulations, clauses, terms and conditions should not, however, be contrary to law, morals, good custom, public order or public policy.
• The fundamental principle of contracts is known as the “autonomy of contracts.”
• In the absence of an intent to benefit the third-person, she is merely an incidental beneficiary who has no right or obligation under the contract.
• If a mortgage is duly registered in accordance with Article 2125 of the Civil Code and the provisions of P.D. 1529 (the Property Registry Decree), a real right or lien in favor of the mortgagee is established, and such right subsists over the properties until the debtor’s debt, the principal obligation, is extinguished.
• A sued B for breach of contract.
• The stipulation on donating a football field is a stipulation pour autrui in favor of a donee beneficiary — the parish church.
• Part of the agreement is that B will donate a football field to the parish church in Barangay Maligaya.
• Whoever comes into possession of a property that is covered by a real right is obliged to respect it.
• Examples of real rights that attach to property are mortgages, and notice of lis pendens (i.e., the property is under litigation).
• Said buyers are necessarily bound to acknowledge and respect the mortgage MICC had earlier executed in favor of Banco Filipino.
• Creditors are protected in cases of contracts intended to defraud them.
• In court, A and B decided to end their legal battle with a compromise agreement.
• Buyers of the property, after registration of the mortgage, are transferees of mortgagor MICC, and they merely step into MICC’s shoes.
• If there is an intent of the contracting parties to benefit a third person, it does not really matter then whether the stipulation is in the nature of a gift or payment to the third person.
• Real rights are rights that affect and follow the property subject to it.
• Article 1313 grants creditors the right to ask for the annulment of contracts entered into by the debtor with another person, with the intent of defrauding the creditor.
• A gift to the third person is regarded as such if the stipulation is a gift to the third person.
• In contracts creating real rights, third persons who come into possession of the object of the contract are bound thereby, subject to the provisions of the Mortgage Law and the Land Registration Laws.
• If the stipulation is to satisfy an actual or supposed obligation to the third-person, then she is a creditor beneficiary.
• A provision in a service contract which is used by the employer to circumvent the compulsory coverage of the employees under the Social Security Law must be struck down for being contrary to law and public policy.
• The fact that the contractual stipulations may turn out to be financially disadvantageous is not a reason to relieve parties of their obligations.
• Jose fi na also required the construction of a commercial building as part of the consideration of the sale.
• A lends B her microscope, which is a contract of commodatum.
• Ratification by the person in whose name the contract is entered into, whether expressly or impliedly done, will make the contract enforceable.
• Jose fi na executed a special power of attorney in favor of her son, Carlos, Jr., authorizing him to sell the property concerned on cash basis only.
• All the applicable provisions of the Civil Code attach to their contract even if not specifically mentioned, like: B’s obligation to take care of the microscope and to return it, liability for damages in case of B’s negligence, and extinguishment of the obligation to return if the thing is lost by fortuitous event, so long as B is not negligent.
• If a person enters into a contract on behalf of another without authority, said contract is unenforceable against the other person in whose name the contract is entered into.
• Carlos, Jr., executed the deed of absolute sale contrary to Jose fi na’s express instructions.
• Real contracts, such as deposit, pledge and commodatum, are not perfected until the delivery of the object of the obligation.
• A contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party.
• 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.