CONTRACTS

CONTRACTS

³ Meeting of the minds between two persons

whereby one binds himself with respect to
the other, to give something or to render
some services


³Binding agreement between 2 persons

³
CONTRACTS
 Characteristics :
1. Obligatory
2. Autonomy
3. Mutuality
4. Relativity


 Stages :
1. Negotiation
2. Perfection
3. Consummation



  ELEMENTS OF VALIDITY:


CONTRACTS 1. Consent
2. Object or subject matter
3. Cause
CONTRACTS


ELEMENTS OF VALIDITY:
1. Consent
 Legal age
 Sound mind
 Not under influence of intoxicating drugs


Not suffering form mental disability
2.Object or subject matter
 Not outside commerce of man
 Rights which are not intransmissible
 Future inheritance in cases expressly authorized by law
 All services which are not contrary to law
CONTRACTS
3. Cause
 Consideration, material, cause
 Time, price and subject matter

4.
5.
 KINDS :


1.Express
CONTRACTS 2.Implied
3.Formal
4.Informal
5.Void or inexistent
6.Voidable
7.Illegal
CONTRACTS
1. Express Contracts
 Formal agreement whether written/oral
 Terms and conditions


2. Implied Contracts
 Presumed or inferred from acts
³ “do ut des” – I give, that you give
³ “do ut facias” – I give, you do
³ “facio ut des” – I do, you give
³ “facio formal” – I do, you do

CONTRACTS
3. Formal Contract
 required to be in writing by special laws


4. Informal Contract
 oral/written agreement by parties concerned
 not required to be written


5. Voidable Contract
 Can be annulled or voided
a)One party is incapable of giving consent
b)Consent is acquired by mistake, violence,
intimidation, undue influence or fraud.
6.



CONTRACTS
6.Void or inexistent contracts
 Object or purpose is contrary to the law
 Fictitious
 Object did not exist
 Object beyond commerce of man
 Performance of impossible service
 Object cannot be determined with certainty
 Declared by law as void, invalid, ineffective
 Illegal contract



CONTRACTS
7. Illegal Contract
1. Made in protection of law
2. Consent obtained by fraud (deception)
3. Obtained by duress (coercion)
4. Under influence
5. Material misrepresentation



CONTRACTS


Advantages of Written Contracts:
1. Certain
2. Specifies definite time
3. Sets a standard
4. Open and well-known
5. Definite
6. Certainty and security
 

BREACH OF CONTRACT:
 Failure to perform an
CONTRACTS agreement whether expressed
or implied
-

1. Prevention of performance
2. Failure to perform because of
inconvenience or difficulty
3. Failure of cooperation
4. Abandonment of duty
5. Substitution of performance
6. Failure to use due care

  LEGAL EXCUSES:



CONTRACTS 1. Discovery of material

misrepresentation
2. Performance is illegal
3. Illness or force majeure
4. Death of patient or nurse
5. Insufficient contract



DOMO ARIGATOU….