Title 2 Contracts 1305 To 1422

Front 1

1305

Back 1

A contract is the meeting of the minds between 2 persons whereby one binds himself with respect to the other, to give something or to render some service

Front 2

Meaning of Contract

Back 2

1 meeting of the minds between two contracting parties which takes place when an offer by one party is accepted by the other

2 one or more persons bind himself or themselves with respect to another or reciprocally to the fulfillment of an obligation to give, to do, or not to do

Front 3

Number of parties

Back 3

1 there must be at least two persons or parties - it is impossible for one to contract with himself

2 single person representing distinct interests

Front 4

Termination or cancellation of pre-existing contract

Back 4

1 termination based on stipulation of parties

There must be some consideration (delivery of money or something else or rendering some act of forebearance) subject to stipulation of parties.

unilateral termination - violates mutuality of contract in 1308

may be superseded by compromise agreement that is not contrary to law, morals, good customs, public order or public policy

to be valid - merely required by law to be based on real claims and to be agreed upon in good faith

2 termination at option of 1 party - when fairly entered into will be enforced provided not contrary to equity and good conscience

3 termination by one party in conformity of the other

Front 5

Termination v Rescission

Back 5

Rescission- declare a contract void in its inception and to put an end to it as though it never were

Termination - congruent with an action for unlawful detainer

necessarily entail enforcement of its terms prior to the declaration of its cancellation in the same way that before a lessee is ejected under a lease contract, he has to fulfill his obligations there under that had accrues prior to his ejectment

Front 6

Contract vs obligation

Back 6

contract - one of the sources of the obligation

Obligation- legal tie or relation itself that exists after a contract has been entered inti

no contract if no obligation

but there can be obligation without contract

Front 7

contract vs agreement

Back 7

contract- agreements enforceable through legal proceedings

agreement - broader than contract because it may not have all the elements of a contract

all contracts are agreements but not all agreements are contracts

Front 8

Characteristics

Back 8

1 Freedom or autonomy - parties establish stipulations, terms, clauses, conditions as they may convenient but not contrary to law morals good customs public order public policy

2 Obligatoriness - have force of law and must be complied with in good faith

3 Mutuality - bind both parties

4 Consensuality - consent. they are bound to fulfillment of the express stipulation and all consequences which according to nature are in keeping with good faith usage and law

5 Relativity - effect only between parties, their heirs, assigns (except when not transmissible by nature or stipulation or provisions of law)

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Classifications

Back 9

1 Name or designation - nomiate and innominate

2 Perfection - Consensual and real

3 Cause - Onerous, remunecatory or remunerative, gratuitous

4 form - informal or common and formal or solemn

5 Obligatory force - valid, void or inexistent, voidable, rescissible, unenforceable

6 Person Obliged - Unilateral and bilateral

7 dependence to another contract- preparatory, accessory , principal

8 risks - commutative and aleatory

9 liability - unilateral and bilateral

Front 10

1306

Back 10

contracting parties may establish stipulations, clauses, terms and conditions as they deem convenient

exceptikn: not contrary to law, morals, good customs, public order, public policy

Front 11

Law

Back 11

a rule of conduct, just, and obligatory, promulgated by legitimate authority and of common observance and benefit

Front 12

morals

Back 12

deal with norms of good and right conduct evolving in a community

good customs