CONTRACTS 04/11/2018

Contract
 Meeting of minds between two persons whereby one binds himself,
with respect to the other, to give something or to render some
service.
ELEMENTS OF A CONTRACT
 Essential elements- w/o w/c there will be no contract
o Consent
o Object
o Cause
 Natural elements
o Warranty against hidden defects
o Warranty against eviction
 Accidental elements
o Terms of payment, interest rate, place of payment
CLASSIFICATION OF CONTRACTS
 According to perfection or formation
o Consensual
o Real
o Formal or solemn
 According to cause
o Onerous
o Gratuitous
o Remuneratory
 According to importance or dependence of one upon another
o Principal
o Accessory
o preparatory
 According to name of designation
o Nominate
o Innominate
 Do ut des
 Do ut facias
 Facio ut des
 Facio ut facias
 According to risk or fulfillment
o Commutative
o aleatory
 According to the parties obligated
o Unilateral
o bilateral
 According to subject matter
o Contracts involving things
o Contract involving rights or credits
o Contracts involving services
 According to time of fulfillment
o Executed
o executory
 According to the # of persons entering into contract
o Ordinary
o Auto-contract
 According to the # of persons who participated in the drafting &
preparation of the contract
o Ordinary
o Contract of adhension
STAGES OF CONTRACT
 Preparation or conception
 Perfection or birth
 Consummation or death or termination
BASIC PRINCIPLES OF CONTRACT (GEN RULES)
 Liberty of contract or freedom to stipulate
o Stipulations should not be contrary to law, morals, goods
customs, public order or public policy
 Mutuality of contracts
o Contract must bind both contracting parties
 Relativity of contracts
o Contracts take effect only between the parties, their assigns &
heirs, except where the rights & obligations are not
transmissible by 1) Law 2) stipulation or 3) Nature
o Note: the heir shall not be liable beyond the value of the
property he received from the decedent.
04/11/2018
04/11/2018