Law on Obligations and Contracts Series

Overview

• Focus on contracts, continuing from obligations
• Based on Civil Code Articles 1305-1317

Video Content

1. Definition of Contract
2. Elements of a Contract
3. Types or Classifications of Contracts
4. Stages in the Formation of a Contract
5. Characteristics of a Contract

1. Definition of Contract

• Contract: Meeting of minds between two persons to give or render service (Article 1305).
• Generally involves two or more persons.
• Relation to Obligations:
  • Not all obligations stem from contracts.
  • Contracts automatically entail obligations.

2. Elements of a Contract

• Essential Elements: Consent, object, and cause.
• Natural Elements: Present in some contracts but removable.
• Accidental Elements: Stipulations by the parties; not inherent.

3. Classifications of Contracts

• According to Perfection:

  • Consensual: Perfected by consent, object, and cause.
  • Real: Requires delivery.
  • Formal: Requires additional legal formalities.

• According to Relation to Other Contracts:

  • Principal, Accessory, Preparatory.

• According to Parties Obliged:

  • Unilateral: One party obliged.
  • Bilateral: Both parties obliged.

• According to Name or Designation:

  • Nominate: Named by law (e.g., sale, loan).
  • Innominate: Not named by law (e.g., do ut des).

• According to Risk Involved:

  • Commutative: Equivalent undertaking.
  • Aleatory: Dependent on uncertain event.

• According to Cause:

  • Onerous: Valuable consideration (e.g., sale).
  • Gratuitous: Pure generosity (e.g., donation).
  • Remuneratory: Based on services received.

• According to Binding Force:

  • Valid, voidable, unenforceable, void.

4. Stages in the Formation of a Contract

1. Preparation: Negotiation, no contract yet.
2. Perfection: Formation when essential elements are agreed upon.
3. Consummation: Fulfillment of obligations.

5. Characteristics of a Contract

• Mutuality: Binds both parties; cannot be left to the will of one.
• Autonomy: Freedom to stipulate terms.
• Relativity: Affects only parties involved.
• Consensuality: Generally perfected by agreement.
• Obligatory Force: Must comply in good faith.

Exemptions to Relativity of Contracts

• Stipulation Pour Autrui: Benefits a third party.
• Real Rights: Affect third parties with property involved.
• Fraudulent Contracts: Voidable by defrauded creditors.
• Inducement to Breach: Third party liability for inducing breach.

Closing

• Upcoming video will cover the essential elements in detail.
• Encouragement to subscribe and sign up for free courses.