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    Oblicon Module 11 Contracts

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    hoxhii
    Contracts are formed through the meeting of minds between two or more parties where they agree to obligations. Key characteristics of contracts include autonomy, where parties can establish terms as long as they do not violate law or morality; consensuality, where contracts are formed upon consent; mutuality, where obligations are mutual between parties; relativity, where only parties and their successors are bound unless otherwise stipulated; and binding effect, where parties must comply with terms and consequences of the contract in good faith. Contracts create obligations between parties and are an important part of Philippine law.

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    Oblicon Module 11 Contracts

    Uploaded by

    hoxhii
    111 views2 pages
    Contracts are formed through the meeting of minds between two or more parties where they agree to obligations. Key characteristics of contracts include autonomy, where parties can establish terms as long as they do not violate law or morality; consensuality, where contracts are formed upon consent; mutuality, where obligations are mutual between parties; relativity, where only parties and their successors are bound unless otherwise stipulated; and binding effect, where parties must comply with terms and consequences of the contract in good faith. Contracts create obligations between parties and are an important part of Philippine law.

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    Oblicon module 11 contracts

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    Contracts are formed through the meeting of minds between two or more parties where they agree to obligations. Key characteristics of contracts include autonomy, where parties can establish terms as long as they do not violate law or morality; consensuality, where contracts are formed upon consent; mutuality, where obligations are mutual between parties; relativity, where only parties and their successors are bound unless otherwise stipulated; and binding effect, where parties must comply with terms and consequences of the contract in good faith. Contracts create obligations between parties and are an important part of Philippine law.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    111 views2 pages

    Oblicon Module 11 Contracts

    Uploaded by

    hoxhii
    Contracts are formed through the meeting of minds between two or more parties where they agree to obligations. Key characteristics of contracts include autonomy, where parties can establish terms as long as they do not violate law or morality; consensuality, where contracts are formed upon consent; mutuality, where obligations are mutual between parties; relativity, where only parties and their successors are bound unless otherwise stipulated; and binding effect, where parties must comply with terms and consequences of the contract in good faith. Contracts create obligations between parties and are an important part of Philippine law.

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    © All Rights Reserved
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    Oblicon – Contracts

    Contracts
     
    Concept
     
    Art. 1305 states that a contract is a source of an obligation wherein there is a meeting of minds between
    two persons and one or more persons are bound to a fulfillment.
    Since a contract is only a source of an obligation, an obligation may exist without a contract but a
    contract cannot exist without an obligation. In terms of agreement, all contracts are considered as an
    agreement but not all agreements are considered as a contract because there are agreements which
    does not need to be legally enforced like moral or social agreements.
     
    Autonomy
     
    Autonomy is a characteristic of a contract where parties are given the freedom to establish any
    stipulation, clauses, terms, and conditions that they desire to put in a contract (Art. 1306). A contract
    cannot be valid if it is against the law, morals, good customs, public order and public policy. They are
    free to constitute a contract as long as it does not go over these limitations. Contracts who does not
    follow these limitations are considered null and void.
     
    Consensuality
     
    As stated in Art. 1315, contracts are perfected by mere consent. Contracts are obligatory as long as the
    parties have agreed to undertake the terms and conditions or whatsoever it is under the contract. Since
    the contract is defined as "meeting of minds", consent of all the parties is a vital requisite in forming a
    contract. On the other hand, the perfection of real contracts and solemn contracts do not depend on
    consent alone. Real contracts are perfected by consent and the actual delivery of the object while
    solemn contract are perfected by consent and the law. After the perfection of a contract, parties are not
    only bound to fulfill their obligations but also the consequences that corresponds to it.
    Mutuality
     
    Art. 1308 states that a contract cannot exist if the validity or compliance is not mutual. By mutuality of
    contracts all the parties are bound to comply to the any stipulation, clauses, terms and conditions under
    a contract. This characteristic will not let a party to be deprived of something from the contract. Since a
    contract is a meeting of the minds between parties and therefore mutual consent is necessary and it
    should be based in their essential quality.
     
    The law does not permit the validity or performance of a contract to be left to the will of one of the
    parties. When a third person enters, following Art. 1309, the determination of performance may be left
    to him. If determination is inequitable then it is not obligatory. Art. 1310 declares that courts has the
    hand on the decision what is equitable based from the circumstances.
     
    Relativity
     
    The relativity characteristic of a contract, under Art. 1311, proposes that only the contracting parties,
    their successors and their heirs are eligible to a contract . Anyone who is not related to the parties are
    not accepted to gain entitlement to the contract. An exception is when the rights and obligations from
    the contract are not transmissible which means only the parties have the right to it. Generally, a third
    person cannot be entitled to a contract but if a contract: (1) contains stipulation in favor of a third
    person, (2) creates real rights, (3) has defraud creditors, (4) or has been violated at the inducement of a
    third person, then a third person is binding to a contract.
     
    Binding effect
     
    According to Art. 1315, the binding effect of a contract is no limited to what is expressly stipulated, it
    also extends to the consequences when a party or more parties committed something against the
    contract. The consent of the parties to fulfill the stipulations in good faith and the corresponding
    consequences is what binds the contracts. Contract has the same binding effect as obligations arising
    from law. Therefore, contracts must be complied with in good faith.

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