CONTRACTS

• Art. 1305

  A contract is a meeting of minds between two persons whereby one binds himself with respect to another, to give something or to render some services
• Art. 1306

  The contracting parties may establish such stipulations, clauses, terms & conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.
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  Art. 1308

  The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them.
• Principle of Mutuality of Contract:

  The binding effect of contract on both parties is based on the principles: that obligations arising from contracts have the force of law between the contracting parties that there must be mutuality between the parties based on their essential equality, to which is repugnant to have one party bound by the contract leaving the other free therefrom
• A contract containing a condition which makes its fulfillment dependent exclusively upon the uncontrolled will of one of the contracting parties is void.
• There must be at least 2 parties to every contract. The number of parties, however, should not be confused with the number of persons.
• Art. 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. (1261)
• A single person can represent 2 parties, and one party can be composed of 2 or more persons. Consent presupposes capacity. There is no effective consent in law without the capacity to give such consent.
• Requisites of contract in general

  • Essential
  • Common
  • Special
  • Extraordinary
  • Natural
  • Accidental
• Essential


  Without which there would be no contract
• Common


  Present in all contracts = Consent, object and cause [COC]
• Special


  Present only in certain contracts (e.g. delivery in real contracts or form in solemn ones)
• Extraordinary


  Peculiar to a specific contract (e.g. price in a contract of sale)
• Natural


  Derived from the nature of the contract, and as a consequence, ordinarily accompany the same, although they can be excluded by the contracting parties if they so desire
• Accidental


  Those which exist only when the contracting parties expressly provide for them for the purpose of limiting or modifying the normal effects of the contract
• Innominate contracts


  Contracts which lack individuality and are not regulated by special provisions of law
• Types of innominate contracts

  • do ut des (I give that you may give)
  • do ut facias (I give that you may do)
  • facio ut facias (I do that you may do)
  • facio ut des (I do that you may give)
• do ut des


  An agreement in which A will give one thing to B, so that B will give another thing to A
• do ut facias


  An agreement under which A will give something to B, so that B may do something for A
• facio ut facias


  An agreement under which A does something for B, so that B may render some other service for A
• facio ut des


  An agreement under which A does something for B, so that B may give something to A
• Innominate contracts, in the absence of stipulations and specific provisions of law on the matter, are to be governed by rules applicable to the most analogous contracts