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Module 5 GENERAL PROVISIONS ON LAW ON CONTRACTS - Codals

This document outlines key provisions around contracts under Philippine law. It defines a contract as a meeting of minds between two parties where one binds themselves to give something or render a service to the other. Contracting parties can establish terms as long as they do not violate law, morality, or public policy. Contracts must bind both parties and cannot rely solely on the will of one party. Third parties may help determine contract obligations if made known to both parties, unless the determination is evidently inequitable.

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Isaiah John Domenic M. Cantanero
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107 views3 pages

Module 5 GENERAL PROVISIONS ON LAW ON CONTRACTS - Codals

This document outlines key provisions around contracts under Philippine law. It defines a contract as a meeting of minds between two parties where one binds themselves to give something or render a service to the other. Contracting parties can establish terms as long as they do not violate law, morality, or public policy. Contracts must bind both parties and cannot rely solely on the will of one party. Third parties may help determine contract obligations if made known to both parties, unless the determination is evidently inequitable.

Uploaded by

Isaiah John Domenic M. Cantanero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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LAW ON OBLIGATIONS AND CONTRACTS

TITLE II CONTRACTS

CHAPTER 1 General Provisions


Article 1305. A 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. (1254a)
Article 1306. 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. (1255a)
Article 1307. Innominate contracts shall be regulated by the stipulations of the
parties, by the provisions of Titles I and II of this Book, by the rules governing
the most analogous nominate contracts, and by the customs of the place. (n)
Article 1308. The contract must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them. (1256a)
Article 1309. The determination of the performance may be left to a third person,
whose decision shall not be binding until it has been made known to both
contracting parties. (n)
Article 1310. The determination shall not be obligatory if it is evidently
inequitable. In such case, the courts shall decide what is equitable under the
circumstances. (n)
Article 1311. Contracts take effect only between the parties, their assigns and
heirs, except in case where the rights and obligations arising from the contract
are not transmissible by their nature, or by stipulation or by provision of law.
The heir is not liable beyond the value of the property he received from the
decedent.
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. A mere incidental benefit or interest of a person is not
sufficient. The contracting parties must have clearly and deliberately conferred a
favor upon a third person. (1257a)
Article 1312. In contracts creating real rights, third persons who come into
possession of the object of the contract are bound thereby, subject to the
provisions of the Mortgage Law and the Land Registration Laws. (n)
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LAW ON OBLIGATIONS AND CONTRACTS

Article 1313. Creditors are protected in cases of contracts intended to defraud


them. (n)
Article 1314. Any third person who induces another to violate his contract shall be
liable for damages to the other contracting party.
(n)
Article 1315. Contracts are perfected by mere consent, and from that moment the
parties are bound not only to the fulfillment of what has been expressly stipulated
but also to all the consequences which, according to their nature, may be in
keeping with good faith, usage and law. (1258)
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LAW ON OBLIGATIONS AND CONTRACTS

Article 1316. Real contracts, such as deposit, pledge and commodatum, are not
perfected until the delivery of the object of the obligation. (n)
Article 1317. No one may contract in the name of another without being
authorized by the latter, or unless he has by law a right to represent him.
A contract entered into in the name of another by one who has no authority or legal
representation, or who has acted beyond his powers, shall be unenforceable, unless
it is ratified, expressly or impliedly, by the person on whose behalf it has been
executed, before it is revoked by the other contracting party. (1259a)

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