Title Ii Contracts

TITLE II CONTRACTS
CHAPTER 1
General Provisions
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)
Meeting of minds – takes place when an offer of 1 party is accepted by the

other
Contracts VS Obligation
● C Is the source of obligation
● O Is the legal tie itself
● NO contract if there is NO obligation
Contracts VS Agreement
● C Is enforceable by court of action
● A Is not enforceable by court of action, merely moral or social
agreement
● ALL contracts are agreement, but NOT ALL agreements are contract
Kinds of Contracts
As to perfection or formation:
● consensual – perfected by agreement of parties
● real – perfected by delivery (e.g. commodatum, pledge, deposit)
● formal/solemn – perfected by conformity to essential formalities (e.g.
donation)
As to cause
● onerous – with valuable consideration
● gratuitous – founded on liberality
● remunerative – prestation is given for service previously rendered not as
obligation
As to importance or dependence of one upon another
● principal – contract may stand alone e.g. sale, lease
● accessory – depends on another contract for its existence; may not exist
on its own e.g. mortgage, guaranty
● preparatory – not an end by itself; a means through which future
contracts may be made e.g. agency, partnership
As to parties obliged / liability:

● unilateral – only one of the parties has an obligation e.g. commudatum,
gratuitous deposit
● bilateral – both parties are required to render reciprocal prestation e.g.
sale, lease
As to name or designation:
● nominate – with specific name eg. commudatum, lease, agency, sale
● innominate – without specific name (DG,FD)
o Do ut des – I give that you may give / barter or exchange (not an
innominate)
o Do ut facias – I give that you may do
o Facio ut des – I do that you may give
o Facio ut facias – I do that you may do
As to risk
● Commutative – when the undertaking of one party is considered the
equivalent of that of the other e.g. sale, lease
● Aleatory – when it depends upon an uncertain event or contingency both
as to benefit or loss e.g. insurance, sale of hope
As to status
● Executory – when it has not yet been completely performed by both
parties
● Executed – when it has been fully and satisfactorily carried out by both
parties
As to dependence of part of contract to another parts

● Divisible – when one part of the contract may be satisfactory performed
independently of the other parts e.g. sale of rocking chair and pair of
shoes
● Indivisible – when each part of the contract is dependent upon the other
parts for satisfactory performance e.g. sale of dining room table and 8
matching chairs
As to obligatory force
● Valid
● Rescissible
● Voidable
● Unenforceable
● Void / Inexistent
Article 1306. The contracting parties may establish such stipulations,

clauses, terms and conditions as they may deem convenient, provided they
are not contrary to MLPPG law, morals, good customs, public order, or public
policy. (1255a)
a) Law – a rule of conduct, just, obligatory, promulgated by legitimate

authority and of common observance and benefit
b) Moral – norms of good and right conduct evolved in a community. Norms
may differ at different times and places and with each group of people
e.g marriage before live in, service in return of compensation
c) Good Customs – habits and practices which through long usage have
been followed and enforced by society or some part of it as binding rules
of conduct. It has force of law when recognized and enforced by law e.g
respect to parents
d) Public Order – refers principally to public safety although it has been
considered to mean also the public weal.
e) Public Policy - broader than public order as the former may refer not only
to a public safety but also to considerations which are moved by the
common good. Contrary to PO is also contrary to PP. e.g theft/stole
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) APAC
It is impossible to name all agreements and include in the civil code thus a
contact is valid as long as it has elements of the contract. COC
Article 1308. The contract must bind both contracting parties; its validity
or compliance cannot be left to the will of one of them. (1256a)
Contract is an
● agreement
● give rise to obligation
● in order to enforced against either parties
NO party can renounce or violate the law of the contract W/O the consent of
the other.

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TITLE II CONTRACTS

Article 1305. A contract is a meeting of minds between two persons

Meeting of minds – takes place when an offer of 1 party is accepted by the

As to parties obliged / liability:

As to dependence of part of contract to another parts

Article 1306. The contracting parties may establish such stipulations,

a) Law – a rule of conduct, just, obligatory, promulgated by legitimate

Article 1307. Innominate contracts shall be regulated by the stipulations of

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