OBLICON PT TITLE II CH 1-6

• A contract is a meeting of minds between two person.
• Commutative when the undertaking of one party is considered the equivalent of that of the other.
• Aleatory- when it depends upon on uncertain event or contingency both as to benefit or loss.
• Unilateral when it creates an obligation on the part of only one of the parties.
• Bilateral when it gives rise to reciprocal obligations for both parties.
• Executory it has not yet been completely performed by both parties.
• Executed when it has been fully and satisfactorily carried out by both parties.
• Preparatory it is entered into means to an end.
• Accessory it is dependent upon another contract.
• Principal it does not depend for its existence and validity upon another contract.
• Indivisible each of the contract is dependent upon other parts. (e.g., sale of a dining room table and 8 matching chairs.)
• Divisible one part of the contract may be satisfactorily performed independently of the other parts. (e.g., sale of rocking chair and a pair of shoes.)
• Valid contracts are those that meet all the legal requisites for the type of agreement.
• Police power when there is no law in existence or when the law is silent.
• Morals deal with norms of good and right conduct evolved in a community.
• Public order refers principally to public safety although it has been considered to mean also the public weal.
• Public policy is broader than public order, as the former may not only public safety.
• Nominate contract a specific name or designation in law.
• Innominate contract has no specific name or designation in law.
• General rule a party's rights and obligations derived from a contract are transmissible to the successors.
• Exceptions a contract are effective only between the parties.
• Third person is one who has not taken part in a contract and a stranger to the contract.
• Stipulation pour autrui is a stipulation in a contract clearly and deliberately conferring a favor upon a third person.
• Consensual contract is perfected by mere consent.
• Solemn contract requires compliance with certain formalities prescribed by law.
• Preparation this includes all the steps taken by the parties leading to the perfection of the contract.
• Real contract is perfected by the delivery of the thing subject matter of the contract.
• Perfection the parties have come to a definite agreement or meeting of minds regarding the subject matter.
• Consummation the parties have performed their respective obligations and the contract may have been full accomplished.
• Essential elements without no contract can validly exist regardless of the intentions of the parties.
• Natural elements presumed to exist in certain contracts unless the contrary is expressly stipulated.
• Accidental elements the particular stipulations clauses, terms, or conditions established by the parties in their contract.
• Consent is the conformity or concurrence of wills.
• Offer is a proposal made by one party to another.
• Option contract giving a person for a consideration a certain period
• Option period given within which the offeree must accept the offer.
• Option money is the money paid or promised to be paid in consieration.
• Unemancipated minors those persons who have not yet reached the age of 18
• Deaf-mutes there are persons who are deaf
• Object of a contract is its subject matter.