Law on Contracts Review

• What is the definition of a contract?

  A contract is an agreement between two people.
• How does a contract function in a purchase scenario?

  One party pays, and the other delivers the item.
• What are the four basic principles of contracts?

  Autonomy, Consensuality, Relativity, Obligatoriness
• What are the three essential elements of contracts?

  Consent, Object, Cause
• What is the definition of interest in the context of accidental elements?

  Extra charge on payments
• What is the definition of Cause in contracts?

  • Reason for entering the contract
  • Must be lawful, true, and adequate
• What is the definition of Consent in contracts?

  • Agreement between parties
  • Must be free, informed, and voluntary
• When are contracts considered perfected according to the principle of Consensuality?

  When the minds of the parties meet
• What is an Unenforceable contract?

  A contract that cannot be legally enforced
• How can a contract be viewed in terms of a promise?

  A contract is a legally binding promise between parties.
• What does the place refer to in accidental elements?

  Where obligations are fulfilled
• What do the two parties in a contract bind themselves to do?

  They bind themselves to give something or provide a service.
• What are the different types of contracts based on their performance?

  • Executed contract
  • Executory contract
  • Unilateral contract
  • Bilateral contract
• What is the Warranty Against Hidden Defects?

  • Guarantees goods sold are free from hidden flaws
  • Buyer can request price reduction or cancel sale if defects exist
• What are the main categories of contracts based on their classification?

  • Validity
  • Formation
  • Performance
• What does it mean for a contract to be legally binding?

  It means both parties must fulfill their obligations.
• What are the Natural Elements of Contracts?

  Included by default unless waived
• What does the principle of Relativity state about contracts?

  Contracts affect only the involved parties and their heirs
• What is the definition of Object in contracts?

  • Subject matter of the contract
  • Must be determinate, within commerce, legal, and possible
• What are accidental elements in contracts?

  Optional terms added by parties
• What do terms refer to in accidental elements?

  Conditions for the contract
• What does the validity classification of contracts include?

  Valid, void, illegal, and unenforceable
• What is the effective time of acceptance under Manifestation Theory?

  When it is manifested by the offeree
• What occurs during the negotiation stage of a contract?

  Parties discuss terms and conditions
• What are the two types of simulations of contracts?

  • Absolute Simulation
  • Relative Simulation
• Why are Natural Elements of Contracts important for buyers?

  They protect buyers and ensure fair contracts
• What defines the perfection stage of a contract?

  Agreement meets all essential elements
• What is the legal status of absolute simulations?

  They are void
• How do intervening events affect an offer?

  They can make an offer ineffective before acceptance
• What does the performance classification of contracts consist of?

  Executed, executory, unilateral, and bilateral
• What is the difference between a valid contract and a void contract?

  • Valid contract: A legally enforceable agreement
  • Void contract: An agreement that has no legal effect
• What does it mean for an object to be determinate in a contract?

  It must be capable of being specified
• When is acceptance considered valid under Manifestation Theory?

  When it is manifested by the offeree
• If a contract is classified as a Quasi contract, what does that mean?

  It is a contract implied by law to prevent unjust enrichment, even though no actual agreement exists
• What is the fifth stage of a contract?

  Termination
• What is a counter-offer?

  A new offer that cancels the original
• What is the second stage of a contract?

  Negotiation
• What is a simulation of contracts?

  Misrepresentation or concealment of true agreement
• What is required for a counter-offer to be valid?

  Agreement from the original offerer
• Why must the object of a contract be within commerce?

  It must be legally salable or usable