Contract
Contract
Contract
Contracts is a meeting of the minds between two person/parties whereby one binds
himself, with respect to the other, to give something or to render some service.
It take place when an offer by one party is accepted by the other
Is it necessary that contract must be in writing? No. because it is a meeting of minds. It is not
necessary na nakasulat, except sa contracts na nirequire ng batas dapat na nakasulat. Example,
Donation, Contract of the sale of land, transfer of intellectual property rights. To avoid conflict
and to create clear binding terms. Contracts are more easily to enforceable than oral agreements,
especially of they clearly outline the parties' rights and responsibilities
Distinguish the contract from obligations:
1. Contract is one of the sources of obligation.
2. Obligation is the legal tie or relation itself that exist after a contract has been entered into
3. Hence, there can be no contract if there is no obligation, But an obligation may exist
without a contract. Obligation may arise from law, quasi contracts, quasi delicts
Distinguish contract from agreement:
1. all contracts are agreements. Contracts is enforceable through a legal proceedings.
Agreements which can not be enforce by actions in courts
2. Not all agreement are contracts
Stages in the life of a contract:
1. Preparation or conceptions
Preparatory step
Bargaining point
Negotiation stage
2. Perfection
3. Consummation
Classification of Contracts
According to perfection or formation:
1. Consensual. Perfected by mere agreement/consent of the parties(i.e. sale, lease)
2. Real Contract. Perfected by delivery of the object by 1 party to the other (i.e.
commodatum, deposit, pledge)
3. Formal or Solemn. Requires compliance with certain formalities. (i.e. donation, chattel
mortgage)
According to Cause or equivalent vale of Prestation:
1. Onerous. Each of the parties aspires to procure for himself a benefit through the giving
of an equivalent or compensation (i.e. sale)
2. Gratuituos. One of the parties propose to give to other a benefit without any equivalent
or compensation (i.e. commodatum)
3. Remunerative. For service previously rendered
According to Degree of dependence
1. Principal. one which can subsist independently from other contracts and whose purpose
can be fulfilled by themselves
2. Accessory. One which can exist only as a consequence of, or in relation with , another
prior contract
3. Preparatory.
According Parties Obligated:
1. Unilateral. give rise to an obligation for only one parties (i.e. commodatum, gratuitous
deposit). does not mean no consent. giving of consent must be mutual
2. Bilateral. give rise to reciprocal obligation for both parties (i.e. sale, lease)
According to name or designation:
1. Nominate. one which has a name and is regulated by special provision of law (i.e. sale,
deposit, agency, lease).
2. Innominate. No specific name or designation in law.
According to Subject Matter
1. Involving Things (i.e. sale, deposit, pledge)
2. Involving Rights or Credits (i.e. usufract, assignment of credits)
3. Involving Service (i.e. agency, lease of services)