1. Concept Article 1308. The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. (1256a) 1) The principle of mutuality of contracts is embodied in Article 1308 of the Civil Code. (Pabalan v. Sabnani, En Banc, Per Concurring Opinion of Caguioa, J.) 2) Mutuality…
1. Concept Article 1307. 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) 1) Innominate – means “having no name: unnamed. (Merriam-Webster Online Dictionary) 2)…
1. Concept Article 1306. 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) 1) Under the principle of autonomy of contracts, parties to an agreement are allowed to establish such stipulations, clauses,…
1. Concepts Article 1305. 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) Related provision: Article 1318. There is no contract unless the following requisites concur: (1) Consent of the contracting parties; (2) Object certain which…
1. Imposable penalties No felony shall be punishable by any penalty not prescribed by law prior to its commission. (Article 21, Ibid.) a. Effect of pardon by the offended party A pardon of the offended party does not extinguish criminal action except as provided in Article 344 of this Code; but civil liability with regard…
1. Concept The following contracts are inexistent and void from the beginning: 1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy; 2) Those which are absolutely simulated or fictitious; 3) Those whose cause or object did not exist at the time of the transaction; 4)…
1. Concept The following contracts are unenforceable, unless they are ratified: (1) Those entered into in the name of another person by one who has been given no authority or legal representation, or who has acted beyond his powers; (2) Those that do not comply with the Statute of Frauds as set forth in this…
1. Concept Voidable contracts are binding, unless they are annulled by a proper action in court.(Paragraph 2, Article 1390, Ibid.) a. Voidable contracts The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties: 1) Those where one of the parties is incapable of giving consent to…
1. Concept Contracts validly agreed upon may be rescinded in the cases established by law. (Article 1380, Civil Code) The term “rescission” is found in: 1) Article 1191 of the Civil Code, the general provision on rescission of reciprocal obligations; 2) Article 1659, which authorizes rescission as an alternative remedy, insofar as the rights and…
Contracts may be classified as follows: 1) Consensual contracts – essential requisites 2) Formal / solemn contracts – essential requisites + formality/solemnity 3) Real contracts – essential requisites + delivery of object 1. Consensual contracts a. Concept “Consensual contracts” – refer to contracts that are perfected by mere consent. The essential requisites of a consensual…