Beruflich Dokumente
Kultur Dokumente
I. Introduction
B. Classification of Contracts
Examples:
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. (1315)
Real contracts, such as deposit, pledge and Commodatum, are not perfected
until the delivery of the object of the obligation. (1316)
Unilateral - Contracts where only one of the parties is bound to fulfill and
obligation. A is bound to fulfill an obligation towards B. (e.g. IOUs, promissory
notes)
C. Characteristics
The contract must bind both contracting parties; its validity or compliance
cannot be left to the will of one of them. (1308)
Both parties, A and B, must a gree and bind to the terms of the contract. It is
a meeting of the minds between parties with respect to the object and cause;
there is a certain offer by one party and there is an absolute acceptance by
another party.
Any person has the liberty to enter into a contract so long as they are
not contrary to law, morals, good customs, public order or public
policy. The legislature, under the constitution, is prohibited from
enacting laws to prescribe the terms of a legal contract.
b. Exceptions:
i. When it is inequitable
ii. Special disqualifications (Art. 87, Family Code, Arts. 1490, 1491,
1782, Civil Code)
a. Contracts take effect only between the parties, their assigns and heirs
A. Consent
a. Offer
b. Acceptance
• Kinds:
c. Termination of Offer
d. Perfection of Contract
o Expedition theory
o Reception theory
2. Legal Capacity of the Parties (Art. 1327-1328) (Sections 23 and 36, Corporation
Code)
a. Mistake or Error
i. Mistake of Fact
• As to principal conditions
4. Simulation of Contracts
B. Object
C. Cause
a. in onerous contracts
b. in remuneratory contracts
2. When it contains various stipulations, some of which are doubtful (Art. 1374)
5. With respect to the party who caused the obscurity (Art. 1377)
6. When it is impossible to settle doubts using the above-cited rules (Art. 1378)
7. When doubts are cast upon the principal object so that the true intention cannot be
known (Art. 1378)
*Rules of interpretation under the Rules of Court will not be covered and will not be
part of the examination. If interested with the topic, the student may read Rule 130,
Sections 10 to 19 of the Rules of Court.
V. Reformation of Instruments
A. Rescissible Contracts
2. Characteristics
b. Party asking for rescission has no other legal means to obtain reparation
(Art. 1383)
a. As to third persons who acquired thing in good faith (Art. 1385 [2] and [3])
b. As to third persons who acquired things in bad faith, when alienation was
in fraud of creditors (Art. 1388)
2. Characteristics
3. Annulment
c. Who May or May Not Institute Action for Annulment (Art. 1397)
ii. When the thing is lost through the fault of the person who has the
right to file the action (Art. 1401)
4. Ratification
a. Requisites
b. Forms
C. Unenforceable Contracts
1. Characteristics
b. Can be ratified
1. Characteristics
2. Kinds
a. Void Contracts
iv. Those where the intention of the parties relative to the principal
object of the contract cannot be ascertained
b. Inexistent Contracts
ii. those whose cause/ object did not exist at the time of the
transaction
3. No Waiver of Defense of Illegality (Art. 1409)
4. Action or Defense for the Declaration of the Inexistence of a Contract (Art. 1410,
1421)
SPECIFIC EXAMPLES OF OBLIGATIONS
A. Estoppel
1. Definition (Art. 1431)
2. Kinds
a. Technical estoppel
i. by record
ii. by deed (Art. 1433)
b. Equitable estoppel or estoppel in pais (Art. 1433)
3. Persons Bound (Art. 1439)