Civil code of the philippines.book iv.title ii.contracts.art.1305 1308

Book IV
Title II
Contracts
Chapter 1
Republic Act No. 386 of the Philippines: An Act to Ordain and Institute the Civil Code of the Philippines I Contracts I Article 1305 to 1318 I Prepared by: Kristine N.Lungay
Prepared by: Kristine N. Lungay

• 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 1305

by stipulation of the parties.
by stipulation, at option of one
party.
by one party with conformity of
the other.
Termination or
cancellation of
pre-existing
contract

Freedom or
autonomy of
contracts.
Obligatoriness
of contracts
Mutuality of
contracts.
Consensuality
of contracts
Relativity of
contracts.
Characteristics of contracts.

Classifications of contract.
(1) According to name or designation:
(a) Nominate; and
(b) Innominate. (see Art. 1307.)
(2) According to perfection:
(a) Consensual; and
(b) Real. (see Arts. 1315, 1316.)
(3) According to cause:
(a) Onerous;
(b) Remuneratory or remunerative; and
(c) Gratuitous. (see Art. 1350.)
(4) According to form:5
(a) Informal or common; and
(b) Formal or solemn. (see Art. 1356.)
(5) According to obligatory force:
(a) Valid (see Art. 1306.);
(b) Rescissible (Chapter 6.);
(c) Voidable (Chapter 7.);
(d) Unenforceable (Chapter 8.); and
(e) Void or inexistent. (Chapter 9.)

Classifications of contract.
(6) According to person obliged:
(a) Unilateral; and
(b) Bilateral. (see Art. 1191.)
(7) According to dependence to another
contract:
(a) Preparatory
(b) Accessory
(c) Principal
(8) According to risks:
(a) Commutative
(b) Aleatory
(9) According to liability:
(a) Unilateral
(b) Bilateral

• 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 1306

• 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 1307

•The contract must bind
both contracting parties;
its validity or compliance
cannot be left to the will
of one of them. (1256a)
Article 1308

• 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 1309

• 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 1310

• 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.
Article 1311

• 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 1311

• 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)
Article 1312

•Creditors are
protected in cases of
contracts intended
to defraud them. (n)
Article 1313

• Any third person who
induces another to violate
his contract shall be liable
for damages to the other
contracting party. (n)
Article 1314

• 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)
Article 1315

• Real contracts, such as
deposit, pledge and
commodatum, are not
perfected until the delivery
of the object of the
obligation. (n)
Article 1316

• 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)
Article 1317

Book IV
Title II
Contracts
Chapter 2

• There is no contract unless the
following requisites concur:
• (1) Consent of the contracting
parties;
• (2) Object certain which is the
subject matter of the contract;
• (3) Cause of the obligation which
is established. (1261)
Article 1318

Thank You

Civil code of the philippines.book iv.title ii.contracts.art.1305 1308

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Civil code of the philippines.book iv.title ii.contracts.art.1305 1308