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DEFINITION
Contract - a voluntary arrangement between two or more parties that is enforceable by law as a binding
legal agreement.
Agreement - A negotiated and usually legally enforceable understanding between two or more legally
competent parties.
Bilateral Contract- Reciprocal arrangement between two parties under which both parties promise to
perform an act in exchange for the other party's act. Each is an obligor on its own promise, and an obligee
on the other party's promise.
Unilateral Contract -
A contract in which only one party makes an express promise, or undertakes a performance without first s
ecuring areciprocal agreement from the other party.
Executive Branch - The executive branch carries out and enforces laws. It includes the President, Vice
President, the Cabinet, executive departments, independent agencies, and other boards, commissions, and
committees.
Legislative Branch- consist of a Senate and a House of Representatives and responsible in creating laws
Judicial Branch –consist of supreme ciourt and lower courts . Its duty is to settle actual controversies
involving rights which are legally demandable and enforceable
RA 4566 - AN ACT CREATING THE PHILIPPINE LICENSING BOARD FOR CONTRACTORS,
PRESCRIBING ITS POWERS, DUTIES AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND
FOR OTHER PURPOSES
ESSAY
a. A contract is a legally binding agreement reached between two parties, the terms of which the
courts have the authority and obligation to enforce. An agreement is a less formal creation of an
obligation between the two parties
b. A simple contract can be made orally, in writing or by the implications deemed from the actions
of the parties. A specialty contract must be signed by the parties sealed, for example with a
company seal and finally it must be delivered.
c. An offer is a statement of the terms which the client (the offeror) is prepared to be contractually
bound. An invitation to treat is different to an offer as it only invites the party to make an offer
and it is not intended to be binding.
d. Documentation is necessary in the conduct of any business, transaction, or project. It serves as a
record of every official action taken and may come in very handy in the future, should a
chronological account of events be necessary for legal or business purposes
e. S
f. The law generally presumes that everyone has the capacity to contract. But if a party does lack
capacity, then the contract is usually voidable and the party without capacity may avoid the
contract. Parties to an agreement must have contractual capacity before the agreement will be
binding on both parties. Contractual capacity is the ability to understand that a contract is being
made and to understand its general nature. The fact that a person fails to completely understand
the full meaning and all ramifications of a contract does not mean that the person lacks
contractual capacity.
g. No, the contract is not valid. Some classes of persons such as people under the age of 21, or in
most states, under the age of 18, are deemed by law to lack contractual capacity. With some
exceptions, a contract made by a minor is voidable. The minor, in other words, may avoid the
legal liability under a contract. Upon reaching the age of majority, a minor may affirm or ratify
the contract and therefore make it contractually binding on him.
A minor will be liable for the reasonable value of necessaries. Necessaries would include, at the very
least, food, clothing, and shelter. Courts have also included within the definition of necessaries
medical care and a minor’s necessary legal services. Loans to procure necessaries are also
necessaries.
h. Consideration is what the promisor demands and receives as the price for the
promise. The promisor is the person making the promise, and the promisee is the person to
whom the promise is made. Consideration consists of something that the promisor is not
otherwise entitled to. It is not necessary to use the word “consideration” in a
contract.Consideration is the price paid for the promise. When thinking of consideration, think in
terms of legal value as opposed to economic value. While economic value (e.g., money) is the
most common form of consideration, consideration does not have to involve money. In order for
a contract to be enforceable, each party to the contract must change his or her legal position in
some way. If an agreement lacks consideration, it is generally not a binding and enforceable
contract.
i. Fv
j. An easement is an agreed-upon use of land by a party other than the landowner while right-of-
way allows another individual to travel through your property. This benefits another person or
another parcel of land you do not own.