CONTRACTS

FIRST, principal source of the rights

and obligations of the partiesCONTRACTS (C) = Agreements

CHAPTER 1

OTHERS (O) = Law

GENERAL PROVISIONS
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.
CONCEPT: In derivative sense, the
word
contract
simply
means
agreement or convention.
However, it must be noted that a
contract is not exactly synonymous
with a convention.
The latter is BROAD enough to include
any kind of agreement, which may
include any kind of agreement, which
may create, modify or extinguish
patrimonial and even family relations,
the former, on the other hand, is
LIMITED
exclusively
to
those
agreements
which
produce
patrimonial obligations.
Convention
Specie

Genus;

Contract

Hence, a contract may be defined as a

juridical convention manifested in
legal form, by virtue of which one or
more person bind themselves in favor
of another or others, or reciprocally, to
the fulfillment of a prestation to give,
to do, or not to do.
DISTINGUISHED
SOURCES:

FROM

OTHER

SECOND, Rights and Obligations(C) = Concrete, limited and transitory

(O) = more or less elastic, absolute
and permanent
Contract v. Contract of Marriage
(1) C maybe 2 or more persons of
the same or of different sexes
M necessary that parties must
be one man and one woman
(2) Nature,
consequences
and
incidents
C

governed
by
their
agreements
M governed by law
(3) C if executed, result is a
contract
M if celebrated, result is a
status
(4) C terminated or dissolved by
mere agreement
M cannot
(5) In case of breach; remedy.
C Damages
M Civil action for legal
separation or criminal action for
adultery or concubinage
Perfected promise merely tends to
insure and pace the way for the
celebration of a contract
Imperfect promise mere unaccepted
offer
Pact an incidental part of a contract
which can be separated from the
principal agreement

Stipulation
dispositive
separated
agreement

an
essential
and
part which cannot be
from
such
principal

All men are presumed sane and

normal and subject to be moved by
substantially the same motives.
There must be a violation of law, the
commission of what the law knows as
an actionable wrong, before the courts
are authorized to lay hold of the
situation and remedy it.
Courts cannot alter a contract by
construction or to make a new
contract for the parties. Its duty is
confined to the interpretation of the
one which they have made for
themselves.
Courts
cannot
supply
material
stipulations or read into the contract
word which it does not contain.
ELEMENTS OF CONTRACTS
Classifications:
(1) Essential without which there
can be no contract
a. Common (communes)
Such
as:
Consent,
Object/Subject, Cause of the
Obligation.
b. Special (especiales)

Such as: Delivery (real

contracts), Forms (solemn)
c. Extraordinary/Peculiar
(especialisomos)
Such as: Price contract of
sale
(2) Natural which are derived
from the nature of the contract
and ordinarily accompany the
same.
Presumed by law, although can
be excluded by the parties if so
desire.
Eg. Warranty against eviction
implied in contact of sale.
Though parties may increase,
diminish or even suppress it.
(3) Accidental which exist only
when the parties expressly
provide for them for the
purpose of limiting of modifying
the normal effects of the
contracts
Eg. Conditions,
modes

terms

and

Parties to a contract existence of two

parties. There is however certain
cases where a juridical relation, known
as auto contract.