NATURE OF CONTRACT AND REQUISITES FOR VALIDITY

• 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.
• Essential Requisites of a Valid Contract:

  1. Valid CONSENT – the parties freely agreed and gave their consent into the contract without force, violence, fraud, coercion, intimidation or undue influence.

  Example: A threatened to kill B if the latter will not sell his property to the former. Out of great fear, B acceded. In this case, the contract of sale is defective because the consent of B is vitiated by threat or intimidation.
• Essential Requisites of a Valid Contract:

  1. Valid OBJECT – the subject matter of contract must be within commerce of men and not contrary to law.

  Example: A sold one (1) kilo of marijuana to B for P500T payable in five (5) monthly installments. B faltered in payment and A wants to sue him for breach of contract. In this case, A cannot sue under the contract because it is void in the first place since its object is illegal. As a void contract, it cannot be a source of any legal right.
• Essential Requisites of a Valid Contract:

  1. Valid CAUSE OR CONSIDERATION – the juridical tie that binds the parties and the legitimate reason or purpose that makes the parties enter into the contract.
• Valid Cause or Consideration


  Example: A wants to buy the car of B but she does not have money. As an alternative consideration, they had agreed that A will submit to the sexual desire of B and will use her body instead as a form of payment. However, after submitting to the carnal desire of B, he does not want to sell anymore his car. A felt betrayed and wants to sue B for breach of contract. In this case, A cannot sue under the contract because it is void in the first place since the consideration involved is illegal. As a void contract, it cannot be a source of any legal right.
• CLASSIFICATIONS OF CONTRACT:

  1. Valid
• CLASSIFICATIONS OF CONTRACT:

  1. Void ab initio
• CLASSIFICATIONS OF CONTRACT:

  1. Voidable
• CLASSIFICATIONS OF CONTRACT:

  1. Rescissible
• CLASSIFICATIONS OF CONTRACT:

  1. Unenforceable
• NOTE: A contract that meets all the essential requisites is perfectly valid and those that are lacking are defective contracts.  Depending on the degree of deficiency, a defective contract may either be void, unenforceable, rescissible or unenforceable.
• Valid Consent


  A threatened to kill B if the latter will not sell his property to the former. Out of great fear, B acceded. In this case, the contract of sale is defective because the consent of B is vitiated by threat or intimidation.
•  Valid Object


  A sold one (1) kilo of marijuana to B for P500T payable in five (5) monthly installments. B faltered in payment and A wants to sue him for breach of contract. In this case, A cannot sue under the contract because it is void in the first place since its object is illegal. As a void contract, it cannot be a source of any legal right.