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CONTRACTS Philippine Law - Coggle Diagram
CONTRACTS
Philippine Law
Chapter 1:
General Provisions
Contract
- a meeting of minds between two parties and the one binds himself to give something ,render some service, or refrain from doing some particular thing to the other.
one of the sources of obligations,
no obligation= no contract
binding agreements enforceable through legal proceedings in case the other party does not comply with his obligation
all contracts are agreements but not all agreements are contracts
it's validity or compliance cannot be left to the will of only one of the parties
the
determination*
of it's performance may be left to a third person, and *the decision must be communicated to both parties by the third party
General Rule
: A party's rights and obligations derived from a contract are transmissible to successors
Exceptions
when the rights and obligations are only between the parties
by their nature
by stipulation
by provision of law
General Rule
: A third person has no rights and obligations under a contract where he is a stranger
Exceptions
in contracts containing a stipulation in favor of a third person
in contracts creating real rights
in contracts entered into defraud creditors
in contracts which have been violated at the inducement of a third person
Stipulation pour autrui
- clearly and deliberately conferring a favor upon a third person who has a right to demand fulfillment provided he communicates his acceptance to the obligor.
Classes
third person is a
done beneficiary
- stipulation is intended for the sole benefit of such person, confers a gift or donation
third person is a
creditor beneficiary
- an obligation is due from the promise to the third person which the former seeks to discharge by means of such stipulation
Requisites
(1)
the contracting parties by their stipulation have clearly and deliberately favored a third person
(2)
the third person must have communicated his acceptance to the obligor before revocation by the obligee
(3)
the stipulation in favor of the third person should be a part, not the whole of the contract
(4)
the favorable stipulation should not be conditioned or compensated by any kind of obligation whatsoever
(5)
neither of the contracting parties bears the legal representation of the third party
Classifications of contract
accdg. to name or designation
nominate
specific name or designation in law
innominate
no specific name or designation in law
accdg. to perfection
:
consensual
perfected by mere consent
real
perfected by delivery of the thing
accdg. to cause
onerous
cause is the promise of a thing or service to another
remuneratory
cause is the service which is renumerated
gratuitous
cause is the liberality of the benefactor or giver
accdg. to form
formal
required by law for it's efficacy to be in a certain specified form
informal
whatever form provided all the requisites and validity are present
accdg. to obligatory force
valid
meets all the legal requirements and conditions for the type of agreement involved
rescissible
valid bec all essential elements exist but subject to rescission in court
voidable
valid bec all essential elements exist but one of the parties is incapable of giving consent or it is fraud
unenforceable
cannot be enforced bec of certain defects provided by law
void or non-existent
no effect at all bec of certain defects
accdg. to person obliged
unilateral
only one party is obliged to comply
bilateral
both parties are mutually bound to each other
accdg. to risks
commutative
the undertaking of one party is considered the equivalent of the other
aleatory
depends upon a certain event or contingency both as to benefit or loss
accdg. to liability
unilateral
obligation on one of the parties
bilateral
gives rise to reciprocal obligations
accdg. to status
executory
not yet been completely performed by both parties
executed
fully performed by both parties
accdg. to dependence of part of contract to other parts
indivisible
each part of the contract is dependent upon other parts for satisfactory performance
divisible
one part of the contract may be performed by independently of the other parts
accdg. to dependence to another contract
preparatory
entered into as means to an end
accessory
dependent upon another contract for guarantees for it' existence and validity
principal
does not depend upon another contract
Limitations
An individual does not have an absolute right to enter into
any
type of contract, there are limitations
Law
- must be lawful, law is superior to a contract
Police Power
- all contractual obligations are subject to the possible exercise of police power (for mere enforcement )
Morals
- norms and good conduct evolved in a community, must be moral
Good Customs
- habits and practices which are enforced by society through long usage
Public Order
- public safety
Public Policy
- should not be against the public good
Innominate Contracts
- no specific name
Kinds
do ut des
"I give that you may give"
do ut facias
"I give that you may do"
facto ut des
'"I do that you may give"
facto ut facias
"Ii do that you may do"
Rules
agreement of the parties
provisions of the Civil Code on Obligations and Contracts
rules governing the most analogous contracts
customs of the place
Chapter 2