Long Quiz Study Guide

 

1305 – Meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. Contact - One of the sources of obligations. bligation -  The legal tie or or relation itself exists after a contract has been entered into. No contract when there is no obligation. An obligation may exist without a contract.

Classi!cation of Contracts "s to name 1. #omi #omina nate te – which has specic name $. %nno %nnomi mina nate te – no specic name or designation by law "s to perfection 1. Cons Consen ens& s&al al – perfected by mere consent $. 'eal – perfected by the delivery of the thing subject matter of the contract 3. (ol ole emn – requires compliance with certain formalities prescribed by law, such prescribed form being thereby an essential element thereof  "ccording to ca&se 1. nero&s -  type of contract where the costs involved with fullling the terms and conditions of the contract are higher than the amount of economic benet received. $. 'em& 'em&ne nera rato tory ry - i ti st hes er v i c eorbenefi t f orwhi c ht her emuner at i oni sgi v e n.

3. )rat )rat&i &ito to&s &s -  type of contract where the costs involved with fullling the terms and conditions of the contract are higher than the amount of economic benet received. *. "ccording to +orm 1. +ormal $. %n %nfo for rmal mal "ccording to obligatory force 1. al alid id – meet all the legal requirements and limitations for the type of agreement involved and are, therefore, legally binding and enforceable. $. 'esc 'escis issi sibl ble e -  Those which which have caused a particular economic damage either to one of the parties or to a !rd person and which may be set aside even if valid. "t may be set aside in whole or in part, to the extent of the damage caused. 3. oida oidabl ble e - contract, unli#e a void contract, is a valid contract. t most,

one party to the contract is bound.  The unbound party may repudiate repudiate the contract, at which time the contract is void. *. nen nenfo forc rcea eabl ble e 5. oid or ine ineist istent ent

"ccording to person obliged 1. nil nilat ater eral al $. /i /ila late tera rall "ccording to ris  1. Comm Comm&t &tat ativ ive e – underta#ing of one party is considered as equivalent of that of the other $. "l "lea eato tory ry – depends upon an uncertain event or contingency both as to benet or loss "ccording to liability 1. nil nilat ater eral al – creates an obligation to only one of the parties $. /i /ila late tera rall – gives rise to reciprocal obligation to both parties "ccording to stat&s 1. ec ec&t &tor ory y – has not yet been completely performed by both parties $. ec ec&t &ted ed – fully and satisfactorily satisfactorily carried out by both parties "ccording to dependence to another contract 1. 2rep 2repar arat ator ory y – entered into as a means to an end Means to an end - a thing that is not valued or important in itself but is useful in achieving an aim $. "cce "ccess ssor ory y – dependent upon another contract it secures or guarantees for its existence and validity 3. 2rin 2rinci cipa pall – does not depend for its existence and validity upon another contract but is an indispensable condition for the existence of an accessory contract

"ccording to dependence of part of contract to other parts 1. %ndi %ndivi visi sibl ble e – each part of the contract is dependent upon the other parts for satisfactory performance $. ivi ivisi sibl ble e – when one part of the contract may satisfactorily satisfactorily performed performed independently independentl y of the other parts

1304 – he contracting parties establish s&ch stip&lations, cla&ses, terms and conditions as they may deem convenient, provided provided they are not

 

contrary to law, morals, good c&stoms, p&blic order and p&blic policy. +reedom to contract g&aranteed – right to enter into contract is one of the liberties guaranteed to the individual by the $onstitution.. %owever, the constitutional $onstitution prohibitions against impairment of contractual obligations obligations refers only to legally valid contracts. 6imitations on Contract&al (tip&lations 1. 6aw – in accordance with, and not repugnant to, an applicable statute. 6aw – a rule of conduct, just, obligatory, promulgated by legitimate authority, and of common observance and benet. Law is superior to contract.

2olice 2ower – &hen the law is silent, all contractual obligations are subject to possible exercise of the police power of the state. $. Mora orals – deal with norms of good and right conduct evolved in a community 3. )ood )ood c&s c&sto toms ms – habits and practices which through long usage have been followed and enforced by society or some part of it as binding rules of conduct. *. 2&bl 2&blic ic rd rder er – refers to public safety although it has been considered to mean also the public weal. 5. 2&blic 2&blic 2olicy 2olicy – refer to considerations consideratio ns which are moved by the common good.

1307 – %nnominate contracts shall be reg&lated by the stip&lations of the parties, by the provisions of iles % and %% of this /oo, by the r&les governing the most analogo&s nominate contracts and by c&stoms of the place. 8inds of %nnominate contract 1. o &t des (no longer and innominate contract. Barter or exchange) $. o &t faci facias as 3. +acto acto &t des des *. +acto acto &t &t faci facias as

'eason for innominate contract -

"mpossibility of anticipating all forms of agreement 'rogress of man(s sociological and economic relationships

'&les governing innominate contracts 1. The agreem agreement ent of of the part parties ies ). 'r 'rovis ovisions ions of the $ivil $ivil $ode $ode on on obligation and contracts

!. *ules governing governing the most most analog analogous ous contracts +. $ust $ustom oms s of th the e plac place e

1309 – he contract m&st bind both parties, its validity or compliance compliance cannot be left to the will of one of them. 130: – he determination of the performance may be left to a third person, whose decision shall not be binding &ntil it has been made nown to both contracting parties. 1310 – he determination shall not be obligatory if it is evidently ine;&itable. %n s&ch case, the co&rts shall decide what is e;&itable &nder the circ&mstances. 1311 – Contracts tae e 1. %t is is intel intellig ligent ent – there is capacity to act  $. %t is fre free e and vol&nt vol&ntary ary – there is no vitiation of consent by reason of violence or intimidation 3. %t is c consc onscio&s io&s or or spontan spontaneo&s eo&s – no vitiation of consent by reason of mista#e, undue in:uence, or fraud. ices of consent> 1. $. 3. *. 5.

rro rror r or mi mist sta ae e iole iolenc nce e or or forc force e %ntim %ntimidat idation ion or or threat threat or or d&ress d&ress nd& nd&e e inD& inD&en ence ce +ra&d ra&d or or dec decei eitt

Ca&ses vitiating consent -  T  Temporary; emporary; - *efers to contract itself  Ca&se of incapacity < <

5or 5ore or or lles ess s per perma man nent ent *ef efer ers s to to the the per perso son n ente enteri ring ng in into to the contract