OBLICON

TITLE II: CONTRACTS

(a) Onerous. where there is an exchange of
CHAPTER 1: GENERAL valuable consideration (e.g., sale, lease,
partnership);
PROVISIONS (b) Gratuitous. where the party receives no
ART. 1305. a contract is a meeting of minds equivalent presentation (e.g., donation,
between two persons whereby one binds commodatum); and
himself, with respect to the other, to give (c) Remunerative or remuneratory. - where the
something or to render some service. presentation is in exchange for a service or
benefit that have been previously rendered by
DEFINE A CONTRACT. the party remunerated (e.g., Where A paid
A contract is meeting of minds between two P20,000 to B for services rendered by the latter
persons hereby one binds himself, with respect as defense counsel in a case).
to the other, to give something or to render 5. According to risk involved:
some service. (a) Cumulative. - where equivalent values are
stipulated and given (e.g., insurance).
WHAT IS THE DIFFRENCE BETWEEN A (b) Aleatory. where the benefit of each party
CONTRACT AND AN AGREEMENT? depends upon chance (e.g., insurance).
Contracts are agreements enforceable through 6. According to name or designation:
legal proceedings. Those agreements which (a) Nominate. - where the contract is given a
cannot be enforced by action in the courts of specific name or designation in law (e.g., sale,
justice (like an agreement to go to a dance lease, agency); and
party) are not contracts but merely moral or Art.
social agreements. (b) Innominate. - where the contract is not
given any specific name or designation in law do
HOW MAY CONTRACTS BE CLASSIFIED? ut facias [I give that you may do); "facio ut des"
As follows: (I dot that you may I do that you may do].) "Do
1. According to perfection or formation: ut des [I give that you may give] has give); "facio
(a) Consensual. - perfected by mere consent ut already been given a name i.e., barter.
(e.g., partnership, sales, lease, agency); 7. According to time of performance:
(b) Real.perfected by delivery of the subject (a) Executed. - where the prestation are already
matter (e.g., deposit, pledge, mutuum, and fulfilled at the time the contract is entered into
ccommodatum); and (e.g., a sale of property which has already been
(c) Formal or solemn.-perfected by execution of delivered and paid for);
the required form (e.g., donation of real (b) Executory. - where the prestations are yet to
property which must be in public instrument). be fulfilled (e.g., A perfected sale where neither
2. According to degree of dependence: the thing nor the price has been delivered and
(a) Preparatory when the contract is not an end paid. In this case, there is only a "choice in
by itself but as a means through which future action"); and
transactions of contracts may be made (e.g., (c) Partially executed. where only one of the
agency, partnership); parties has performed his obligations,
(b) Principal. when the contract may exist by completely or partially, or where there is only
itself (e.g., sale, lease, agency, partnership); and partial performance by both parties (e.g., In a
(c) Accessory.where the contract depends upon contract of sale, the whole or part of the thing
some other contract for its existence (e.g., sold, or the whole part of the delivered, or only
pledge mortgage guaranty). a part of the thing and a part of the price have
3. According to the parties obligated: been delivered). price has been
(a) Unilateral. where only one party has an WHAT ARE THE DIFFERENT STAGE OF A
obligation (e.g., gratuitous deposit, guaranty); CONTRACT?
and They are:
(b) Bilateral or reciprocal. where both parties (1) Preparation or conception. It includes all the
have obligations (e.g., sale, lease, partnership). negotiations or steps taken by the parties
4. According to cause or equivalence of the leading to the perfection of the contract;
value of presentation: (2) Perfection or birth. This is when the parties
have come to a definite agreement or meeting
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TITLE II: CONTRACTS
of minds regarding the subject matter and cause transmissible by their nature, or by stipulation,
of the contract; and or by provision of law
(3) Consummation or termination. This is when  Parties
the parties have performed their respective  The persons who are involved in the
obligations and the contract may be said to contract
have been fully executed.  Heirs
HOW ARE CONTRACTS PERFECTED?  Tagapagmana
(1) General Rule. - by mere consent of the  Pagnamatay ang isa sa mga parties
parties (Arts. 1315, 1319)  Assigns
(2) Exceptions:  Subsitution sa’yo
(a) Real Contracts. -not merely by consent but if namatay ang may utang sa’yo, ang heirs (any of the 3rd
by delivery, actual or constructive, of the object person who are involve) ng may utang ay ang mag-aako ng
of the obligation (Art. 1316); and obligation niya sayo. Pero ang makukuha mo nalang o p’wede
(b) Solemn contracts.-not merely by consent but mong kunin sa mga heirs ay ang inheritants (mana nila) ng
by complying with the special formalities utang ng may utang sa’yo.
required by law. (Art. 1356.) *if may namatay at ang nga heirs, assigns ay walang mana,
p’wede mo habulin ang pagmamay-ari(property) nila na
GIVE THE CHARACTERISTICS OF CONTRACTS. pangbayad sa utang
They are:
ART.1306. SECOND PARAGRAPH
(1) Autonomy or liberty of contracts. The parties  hindi apektado ang strangers kung hindi sila heirs,and the
may establish such stipulations, clauses, terms assigns, as a rule
and conditions as they may deem convenient,  If there is stipulation or agreemnt giving a right na maki-
provided they are not contrary to law, morals, alam sa kontrata ang 3rd person na ito ay p’wede na sha
good customs, public order, and public policy maki-alam
 Stipulation pour autrui
(2) Obligatory force of contracts. - Obligations  A stipulation in a contract clearly and deliberately
arising from contracts have been of law conferring a favor upon 3rd person who has a right to
between the contracting parties should be demand its fulfilment provided he communicates his
complied with in good faith. acceptance to the obligor before its revocation by the
 There must be no fraud, ect. obligee or the original parties
(3) Consensuality of contracts. - Contracts are Ex: insurance
perfected by mere consent, and from that May insurance ka at nasa kontrata na kapag may na-
moment the parties are bound not only by the injured ka sa pagmamaneho mo, ang
fulfilment of what has been expressly stipulated magbabayad ay ang insurance company. Ang victim
but also to all the consequences which, (3rd person) ang involve na tao na hindi kasama
according to their nature, may be in keeping sa agreement or contract, at ang victim na ito ay
with good faith, usage and law may right na to demand.
 When there is already an agreement, there
is already a contract.
ART.1308 ART. 1307. innominate contracts shall be
(3) Mutuality of contracts. Contracts must bind regulated by the stipulation of the parties, by
both contracting parties; their validity or provisions of titles I and II of this book, by the
compliance cannot be left to the will of one of rules governing the most analogous nominate
them has been expressly stipulated but also to contracts and by the customs of the place
all the consequences which, according to their
nature, may be in keeping with good faith, 1. Nominate. - where the contract is given a
usage and law specific name or designation in law (e.g., sale,
lease, agency); and
ART.1311 2. Innominate. - where the contract is not given
(5) Relativity of contract. Contracts take effect any specific name or designation in law do ut
only between the parties, their assigns and facias [I give that you may do); "facio ut des" (I
heirs, except in cases were the rights and dot that you may I do that you may do].) "Do ut
obligations arising from the contract are not
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TITLE II: CONTRACTS
des [I give that you may give] has give); "facio ut
already been given a name i.e., barter.

ART.1309.The determination of the

performance be left to a third person, whose
decision shall not be binding until it as been
made known to both contracting parties.
 In determination is not obligatory if it is
evidently inequiptable
 If ang determination ng 3rd person ay hindi
tama, then you can go to court and decide
what is the best solution

ART. 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.
Ex: nagre-rent ka at binenta ang place na
nirerentahan mo at pinapaalis ka nito. para
ma-recognize ka nito, ipatatak (anotate or
register) mo sa titulo ng lupa ang kontrata
niyo ng dating may-ari. Makikita ito ng
bagong may-ari na may kontrata ka for xx
year.
*3rd person will be bound by your contracts
If you register your contracts.

ART. 1313. Creditors are protected in cases

of contracts intended to defraud them.

ART. 1314. Any third person who induces

another to violate his contract shall be liable for
damages to the other contracting party.