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Classification of Contracts According To Importance or Dependence of One Upon Another

A contract is a meeting of the minds between two parties where one party binds themselves to provide something or render a service to the other party. There are essential elements for a valid contract including consent, subject matter, and consideration. Contracts can be classified as principal, accessory, or preparatory depending on their level of dependence on another contract. The stages of a contract are preparation and negotiation, perfection upon reaching a definite agreement, and consummation or termination upon performance. Characteristics of a valid contract include freedom to stipulate terms unless contrary to law, the obligatory and good faith compliance of both parties, and perfection merely by consent between the parties.

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712 views2 pages

Classification of Contracts According To Importance or Dependence of One Upon Another

A contract is a meeting of the minds between two parties where one party binds themselves to provide something or render a service to the other party. There are essential elements for a valid contract including consent, subject matter, and consideration. Contracts can be classified as principal, accessory, or preparatory depending on their level of dependence on another contract. The stages of a contract are preparation and negotiation, perfection upon reaching a definite agreement, and consummation or termination upon performance. Characteristics of a valid contract include freedom to stipulate terms unless contrary to law, the obligatory and good faith compliance of both parties, and perfection merely by consent between the parties.

Uploaded by

OliverMastilero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Contract a meeting of the minds between 2 persons whereby one binds himself,

with respect to the other, to give something or to render some service


Essential Elements of a Contract
a. Consent
b. Subject Matter
c. Cause or Consideration
d. Delivery of the Subject Matter
Classification of Contracts According to importance or dependence of one upon
another
Principal Contract the contract may stand alone by itself
Example: sales, lease
Accessory Contract depends for its existence upon another contract
Example: mortgage principal is loan
Preparatory Contract the parties do not consider the contract as an end by
itself, but as a means thru which future transaction or contracts may be made
Example: agency, partnership
Stages of a Contract
a. Preparation (Conception) parties are progressing with their negotiations; have
not yet arrived at any definite agreement
b. Perfection (Birth) parties have come to a definite agreement by mutual
consent
c. Consummation (Death or Termination) terms are performed and fully executed
Characteristics of a Contract
a. Freedom to Stipulate not contrary to law, morals, good customs, public order
or public policy
b. Obligatory Force and Compliance in Good Faith
c. Perfection by mere Consent
d. Both Parties are Mutually Bound
e. Relatively binding only between the parties, their assigns, and heirs
GR: Contracting Parties may establish stipulations, clauses, terms and conditions,
provided they are not contrary to law, morals, good customs, public order or public
policy
Note:
The law forms part of the contract
GR: Contracts are perfected by mere consent
The parties are bound to fulfill what has been expressly stipulated and
compliance must be in good faith
The parties are bound to all the consequences which, according to their
nature, may be in keeping with good faith, usage, and law

Consensuality of Contracts perfection by mere consent


Note:
If the true intention is not expressed in a written agreement remedy is
Reformation
Persons Incapacitated to Consent to a Contract
a. Minors
b. Insane or demented persons (unless they acted during a lucid interval),
drunks and those hypnotized
c. deaf mutes who do not know how to read and write
Note:
If a deaf-mute knows how to read but does not know how to write, the
contract is valid, for they are capable of understanding, and therefore
capacitated to give consent
GR: Contracts shall be obligatory, provided all the essential requisites for their
validity are present (consent, subject matter, and cause)
The requirement provided by law for form of contract to be valid or
enforceable is absolute and indispensable
Art. 1813. A conveyance by a partner of his whole interest in the partnership does
not of itself dissolve the partnership, or, as against the other partners in the
absence of agreement, entitle the assignee, during the continuance of the
partnership, to interfere in the management or administration of the partnership
business or affairs, or to require any information or account of partnership
transactions, or to inspect the partnership books; but it merely entitles the assignee
to receive in accordance with his contract the profits to which the assigning partner
would otherwise be entitled. However, in case of fraud in the management of the
partnership, the assignee may avail himself of the usual remedies.
In case of a dissolution of the partnership, the assignee is entitled to receive his
assignor's interest and may require an account from the date only of the last
account agreed to by all the partners.

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