Oblicon contract

• Contract


  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 Elements of a Contract


  • Consent of the contracting parties
  • Object certain which is the subject matter of the contract
  • Cause of the obligation which is established
• Natural Elements of a Contract


  • Those found in certain contracts unless set aside or suppressed by the parties (such as warranty against eviction and warranty against hidden defects in a contract of sale)
• Accidental Elements of a Contract


  • Those that refer to particular stipulations of the parties (such as terms of payment, interest rate, place of payment)
• Classification of Contracts According to Perfection or Formation


  • Consensual - those which are perfected by mere agreement of the parties
  • Real - those which require not only the consent of the parties for their perfection, but also the delivery the object of the object by any one party to the other
  • Formal or Solemn - those which must be in the form provided by law for their perfection
• Classification of Contracts According to Importance or Dependence


  • Principal - one that can stand by itself
  • Accessory - one whose existence depends upon another contract
  • Preparatory - one which serves as a means by which other contracts may be entered
• Classification of Contracts According to Parties Obliged


  • Unilateral - those which give rise to an obligation for only one of the parties
  • Bilateral - those which give rise to reciprocal obligations for both parties
• Classification of Contracts According to Cause


  • Onerous - those where there is an exchange of valuable considerations
  • Gratuitious or lucrative - those where one party receives no equivalent consideration
  • Remuneratory - those where the cause is the service or benefit remunerated
• Classification of Contracts According to Risk or Fulfillment


  • Commutative - those where each of the parties acquires an equivalent of his prestation and such equivalent is pecuniarily appreciable and already determined from the moment of the celebration of the contract
  • Aleatory - those where each of the parties has to account the acquisition of an equivalent of his prestation but such equivalent, although pecuniarily appreciable, is not yet determined, at the moment of the celebration of the contract, since it depends upon the happening of an uncertain event, thus charging the parties with the risk of loss or gain
• Classification of Contracts According to Name or Designation


  • Nominate - those which have their own individuality and are regulated by special provisions of law
  • Innominate - those which lack individuality and are not regulated by special provisions of law
• Kinds of Innominate Contracts


  • Do ut des - I give that you may give
  • Do ut facias - I give that you may do
  • Facio ut des - I do that you may give
  • Facio ut facias - I do that you may do
• Rules of Innominate Contracts


  • Stipulations of the parties
  • The provisions of obligations and contracts
  • The rules governing the most analogous nominate contracts
  • The customs of the place
• Classification of Contracts According to Binding Force


  • Valid
  • Recissible
  • Voidable
  • Unenforceable
  • Void
• Other Classification of Contracts


  • Auto-contract - where only one person represents the two opposite parties to the contract
  • Contract of adhesion - where only one party drafted the contract
• Stages of a Contract


  • Preparation or conception - this involves preliminary negotiations and bargaining, discussion of terms and conditions, with no arrival yet of a definite agreement
  • Perfection or birth - this is the point when there is a meeting of minds between the parties on a definite subject matter and valid cause
  • Consummation or death or termination - occurs when the parties fulfill or perform the terms agreed upon in the contract, culminating in the extinguishment thereof
• Basic Principles of Contract


  • Liberty of contract or freedom to stipulate
  • Mutuality of contracts
  • Relativity of contracts
  • Consensuality Contract
  • Obligatory force of contract
• Liberty of contract or freedom to stipulate


  Also called autonomy of contracts. 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
• Mutuality of contract


  The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them
• Relativity of contracts


  Contracts take effect only between the parties, their assigns and heirs, except where the rights and obligations are not transmissible by law, by stipulation, or by nature
• Exceptional Cases to the Principle of Relativity of Contracts


  • If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation
  • In contracts creating real rights, third persons who come into possession of the object of the contract are bound thereby
  • Creditors are protected in cases of contracts intended to the defraud them
  • Any third person who induces anoather to violate his contract shall be liable for damages to the other contracting party
• Requisites of Stipulation Pour Autrui


  • There must be a stipulation in favor of a third person
  • The stipulation must be a part, not the whole of the contract
  • The contracting parties must have clearly and deliberately conferred a favor upon a third person not a mere incidental benefit of interest
  • The third person must have communicated his acceptance to the obligor before its revocation
  • Neither of the contracting parties bears the legal representation or authorization of the third party
• Example: D obtained a loan from C amounting to 100,000.00. The parties agreed that the loan shall bear an interest 1% per month to be paid by D to X until the principal is paid in full.
• Consensuality Contract


  Contracts are perfected by mere consent except in real contracts such as deposit, pledge and commodatum, which are perfected upon the delivery of the object of the obligation, and in formal or solemn contracts, which are required to be in the form provided by law, to be perfected
• Obligatory force of contract


  Obligations arising form contracts shall have the force law between the contracting parties and should be complied with in good faith. Upon the perfection of the contract, the parties are bound to the fulfillment of what has been expressly stipulated and all the consequences which, according to their nature, may be in keeping with good faith, usage and law.