OBLICON REVIEWER

CONTRACTS CLASSIFICATION OF CONTRACTTS

CHAPTER 1 1.) According to name or designation

a. Nominate
ART. 1305 A CONTRACT IS A MEETING OF THE b. Innominate
MINDS BETWEEN TWO PERSONS WHEREBY 2.) According to perfection
ONE BINDS HIMSELF WITH RESPECT TO THE a. Consensual
OTHER, TO GIVE SOMETHING OR TO RENDER b. Real
SOME SERVICE. 3.) According to cause
 Contracts- a. Onerous
a. Meeting of minds between two b. Remunerative
contracting parties which take place c. Gratuitous
when an offer of one party is 4.) According to form
accepted by another. a. Formal or solemn
b. There must be at least two persons b. Informal, common or simple
or parties 5.) According to Obligatory Force
 Contract and Obligation distinguished a. Valid
a. Contract- source of obligation; no b. Voidable
obligation=no contract c. Rescissible
b. Obligation- Legal tie that exist after d. Void or Inexistent
the contract has been entered into; e. Unenforceable
can exist even w/o contract (pwede 6.) According to Persons Obliged
kasi tong obligation sa law, public a. Unilateral
order, custom, etc) b. Bilateral
7.) According to Risks
 Contract and Agreement Distinguished
a. Commutative- (sale, lease) when
a. Contract- binding agreements
the undertaking of a party is
enforceable thru legal proceedings.
considered equivalent to that of
To be valid and enforceable it must
another
be lawful and contains all the
b. Aleatory- (insurance, sale of hope)
requisites of a valid contract.
when it depends upon an uncertain
b. Agreement- Cannot be enforced by
event or contingency both as to
action in courts of justice. Parang
benefit or loss.
ano lang siya moral and social
8.) According to Liability
agreement, kunwari pumayag ka
a. Unilateral- (commodatum,
lang kumanta or sumayaw para sa
gratuitous, deposit), kapag isang
birthday ng jowa mo, sana all.
party lang may obligation
Broader than contract.
b. Bilateral- (sale, lease), kapag pareho
c. All contracts are agreements but
kayong may obligation
not all agreements are contracts.
9.) According to Status
 a. Executory- hindi pa nagagawa ng a. Meet the legal requirements
both parties (consent, object, cause) and
b. Executed- kapag nagawa na limitations.
successfully b. Legally binding and enforceable
10.)According to dependence to another  Freedom to contract guaranteed
contract a. Yung freedom to enter a contract
a. Preparatory- (agency, partnership), daw ay isa sa mga liberties na
means to an end; done before binibigay ng constitution sa tao
doing something else. pero dapat yung contract na
b. Accessory- (mortgage, guaranty), papasukan mo lang ay ang mga
dependent upon another contract it conracts na valid. Ibig sabihin wala
secures or guarantees for its talang absolute right to enter into
existence and validity any kind of contract dahil nga may
c. Principal (sale, lease), hindi ‘to limitations.
dependent be sa ibang contract,  Limitations on contractual stipulations
but necessary siya para sa existence 1. Law
ng accessory contract. -basta dapat yung contract mo
11.)According to dependence of part of ay in accordance and not
contract to the other parts repugnant to an applicable
a. Indivisible statute.
(entire, kunwari sale ng shirt with 2. Police Power
matching pants), when each part of the -all contractual obligations are
contract is dependent upon the other subject to the possible exercise
parts for satisfactory performance. of police power.
b. Divisible -The exercise of such power
(pwedeng magkahiwalay, kuwari sale of constitutes a mere
candy and a piece of cake), when one enforcement.
part of the contract maybe satisfactorily  Contract must not be contrary to law
performed independently of the other 1. Law--rule of conduct, just,
parts. obligatory, promulgated by
legitimate authority, and of
(Kind of contract entered into is not common observance and benefit.
determined by name or title but, by its 2. A contract cannot be given effect if
nature.) it is contrary to law because law is
superior to contract.
ART. 1306 The contracting parties may establish
such stipulations, clauses, terms, and conditions
as they may deem convenient, as long as they
are not contrary to law, morals, customs, public
order, and public policy.

 Valid Contracts
 Contract must not be contrary to the ako ng 50000. Bawal to be kasi
following nagnakaw siya so dapat
1. Morals- deal with norms of good maparusahan siya, paano kung
and right conduct magnakaw siya ulit diba? Against to
Ex 1. Contract kung saan pumayag sa public policy.
si X na maging asawa ni Y kapalit ng
ART. 1307 Innominate contracts shall be
100000, immoral yun be kaya void
regulated by tge stipulations of the parties by
din.
the provisions of Titles I and II of this book by
Ex 2. Kapag pumayag si X maging
the rules governing the most analogous
alipin ni Y ng walang sweldo
nominate contracts and by the customs of the
hangga’t hindi niya nababayaran
place.
yung utang niya, contrary to sa law.
Gaga talaga tong si X be wag mong 1. Nominate contracts- has specific name
gayahin. or designation (commodatum, lease,
agency)
2. Customs- habits and practices 2. Innominate contracts- has no specific
which thru long usage have been name or designation
followed and enforced by society. a. Do ut des- I give that you may give
Ex. Kunwari pumasok ka sa contract b. Do ut facias- I give that you may do
na kung saan inutusan ka ni Y na c. Facio ut des- I do that you may give
sampalin yung teacher mo sa stats, d. Facio ut facias- I do that you may
void yun be against yun sa good do
customs of showing respect.
Pagpray na lang natin siya :) (Pero yung do ut des hindi na siya
innominate ngayon dahil siya na ngayon
3. Public order- public safety or weal. ay tinatawag na barter or exchange.
Ex. Kapag nakalagay sa contract na Palakpakan)
lessor can use force para maeject
A. Rules governing innominate
yung lessee kapag hindi siya
contracts
nakapagbayad, void to be at against
a. The agreement of parties
sa public order dapat hindi tayo
b. Provisions of Civil Code
gumagamit ng force be.
c. Rules governing analogous
contracts
4. Public policy- broader; refer not
d. Customs of the place
only to public safety but also to
common good. Contract which has ART. 1308 The contract must bind both
a tendency to be injurious to the contracting parties, Its validity cannot be left to
public is contrary to public policy. the will of one of them.
Ex. Kapag ninakaw ni X yung kotse
ni Y. Tapos pumasok sila sa contract -It is a fundamental rule that no party can
na kung saan ang sabi ni Y ay hindi renounce or violate the law of the contract w/o
kita papatayin kung babayaran mo
the consent of the other. Dapat mutual ang must have clearly conferred a favor upon the
consent be. third person.

ART. 1309 THE DETERMINATION OF THE 1. General Rule- party’s right and
PERFORMANCE MAY BE LEFT TO A THIRD obligation derived from the contract is
PERSON, WHOSE DECISION SHALL NOT BE transmissible to the successor. Contract
BINDING UNTIL IT HAS BEEN MADE KNOWN TO takes effect only between the parties,
BOTH CONTRACTING PARTIES. their assigns, and heirs.
2. Exceptions- when contract is not
 pwede to be kasi hindi siya potestative transmissible.
condition (yung condition na a. By nature- when it involves
nagdedepende sa sole will ng isang personal qualifications
contracting party lang). The decision b. By stipulation- in accordance with
however shall bind the parties only the principle of freedom to contract
after it has been made known to both c. By provisions of law- as in agency,
of them. commodatum, lease, when death
 Ex. Kunwari si X binenta niya lupa niya extinguishes the legal relationship.
kay Y, napagkasunduan nila na si Z na  Third persons affected by a contract
real estate appraiser ang magdedecide 1. Third person has no rights and
ng price. Dapat malaman muna ng both obligations under a contract to
parties yung desisyon ni Z bago ito which he is a stranger. There are
maging binding. cases, however when third persons
ART. 1310 the determination shall not be are affected by the contract.
obligatory if it is evidently inequitable. in such a. In contracts containing
case, the courts shall decide what is equitable stipulation in favor of a third
under the circumstances. person.(Stipulation pour autrui)
b. Contracts entered to defraud
ART. 1311 contracts take effect only between creditors
the parties, their assigns and heirs except in c. In contracts which have been
case where the rights and obligations asrising violated at the inducement of
from the contract are not transmissible by their third person
nature, by stipulation, or by the provisions of  Stipulation Pour Autrui
law. 1.) Definition: stipulation in a contract
conferring a favor upon a third
the heir is not liable beyond the value of the
person who has the right to
property he received from the decedent.
demand its fulfillment, provided he
if a contract should contain some stipulation in communicated his acceptance to
favor of a third person, he may demand its obligor before its revocation by the
fulfillment provided he communicated hid obligee.
acceptance to the obligor before its revocation.
a mere incidental benefit or an interest of a
person is not sufficient; the contracting parties
 2.) Classes: ART. 1313 Creditors are protected in cases of
a. Done beneficiary- stipulation is contracts intended to defraud them
intended for the sole benefit of
such person. Parang gift or  Creditor is given the right to impugn the
donation. contracts of his debtor to defraud him.
b. Creditor Beneficiary- where an Ex. May utang si X kay Y. Itong si X
obligation is due from the binenta yung natitira niyang property
promise to the third person. kay Z para hindi makuha ni Y. Kahit
Kunwari nagpromise kang walang kinalaman si Y sa kontrata ni X
magbabayad ka sa binili mong at Z maaari niyang ipacancel yung sale
property sa seller na sa third nila para sa kanya na yung property.
person mo na lang ibibigay ART. 1314 any third person who induces
yung bayad. (‘di ko sure beh ah) another to violate his contract shall be liable for
3.) Requisites: damages to the other contracting party.
a. Contracting parties must clearly
conferred a favor upon a third  Rule of American Law, but also proper
person under principles of PH Law
b. Third person must have  Dapat yung contract ay valid at may
communicated his acceptance knowledge yung third person na yun sa
before revocation by oblige existence nung contract.
c. Stipulation should be a part, not  Liability of the third person shall be
the whole, of the contract based on the theory of quasi-delict.
d. Should not be compensated or
conditioned by any kind of ART. 1315 Contracts are perfected by mere
obligation consent and from the moment the parties are
e. Neither of the parties bear the bound not only to the fulfillment of what has
legal representation or been expressly stipulated but also to all the
authorization of third party consequences which, according to their nature,
maybe keeping w/ good faith, usage and law.
ART. 1312 In contracts creating real rights, third
persons who come into possession of the object ART. 1316 Real contracts, such as deposit,
of the contract are bound thereby subject to pledge, commodatum, are not perfected until
provisions of Mortgage Law and the Land the delivery of the object of the obligation.
Registration Laws 1. Consensual contracts- perfected by
1. Real right is binding against the whole mere consent (sale, lease, agency). They
world kaya kahit yung third person who come into existence upon their
come into possession of the object of a perfection by mutual consent, even if
contract is bound thereby. the subject is not yet delivered. Sa
2. Kapag nakaregister in accordance sa perfection na part dito hindi pa
Property Registration Decree nattransfer yung title pero naggive rise
nagcoconstitute siya ng real right. na siya sa obligation binding upon both
parties.
 2. Real Contracts- perfected by delivery of whose behalf it has been executed, before it is
the thing (depositum, pledge, revoked by the other contracting party.
commodatum). These contracts have
for their purpose restitution because  Unauthorized contracts are
they contemplate the return by a party unenforceable
of what has been received from  Unauthorized contract is not to be
another. confused with a contract for the benefit
3. Solemn Contracts- require compliance of a third person who may demand its
with certain formalities prescribed by fulfillment provided the requisites
law ( donation of real property which mentioned are present.
must be in a public instrument.  Unauthorized contracts can be cured
 Stages in the life of a contract only by ratification. Ratification must be
1. Preparation or Negotiation- steps clear and express so as not to admit of
taken; parties have not yet arrived any doubt or vagueness.
at any definite agreement.  Ratification cleanses the contract from
2. Perfection or birth- parties have all its defects from the moment the
come to a definite agreement ot contract was entered into.
meeting of the minds.  When a person is bound by the contract
3. Consummation or Termination- of another, requisites are:
parties performed their respective a. He must be duly authorized
obligations and contract may be expressly or impliedly.
said to have been fully b. He must act within his power
accomplished. Termination can also
happen by mutual agreement of
CHAPTER 2
parties.
REQUISITES OF A CONTRACT
 Effect of the perfection of contract,
parties are bound not only- ART. 1318 there is no contract unless the ff
1. To the fulfillment of the contract requisites occur:
but also
2. The consequences which, according 1. Consent
to their nature, maybe keeping w/ 2. Object
good faith, usage and law. 3. Cause

ART. 1317 No one may contract in the name of  Classes of elements of contract
another without being authorized by the latter, A. Essential elements- no contract
or unless he has by law a right to represent him. can validly exist without these,
aka requisites of a contract.
A contract entered in the name of another by
a. Common- present in all
one who has no authority or legal
contracts (COC)
representation, or whi has acted beyond his
b. Special- not common to all,
powers, shall be unenforceable, unless it is
only to specified contracts
ratified expressly or impliedly, by the person on
 B. Natural elements- presumed to fikxed bc it is necessary that the
exist in certain contracts. Like acceptance is identical to the offer.
warranty. -Offer made when mad or emotionally
C. Accidental Contracts- or the upset or in other ways indicating that it
particular stipulations, clauses, wasn’t seriously intended is not a valid
terms, and conditions offer. But lack of serious intent to enter
established. Exist only when into a contract where such condition is
expressly provided. not apparent to the offeree does not
invalidate the offer.
SECTION 1.-CONSENT
 Acceptance
ART 1319 Consent is manifested by the meeting -must be clear, absolute, unconditional,
of the offer and acceptance upon the thing and unqualified, and must be identical with
the cause which are to constitute the contract. the offer.
The offer must be certain and acceptance must -kapag daw qualified and contract
be absolute. A qualified acceptance constitutes which means na subject siya sa isang
a counter-offer. condition it constitutes daw counter-
offer na kung saan yung original offer ay
Acceptance made by letter or telegram does not narereject at nagkakaroon yungparties
bind the offerer except it came to his ng bagong contract. Yung offerer
knowledge. The contract in such a case, is nagigingofferee and vice versa.
presumed to have been entered into in the
place where tha offer was made ART. 1320 An acceptance may be express or
implied
 Consent
-conformity or concurrence of wills 1. Express- written or oral
(offer and acceptance) and with respect 2. Implied- act or conduct
to contracts. ART 1321 The person making the offer may fix
-Agreement of the will of one party with the time, place, and manner of the acceptance,
that of another, upon the object or all of which must be complied with.
terms.
-meeting of minds or mutual assent -Art 1321-1326 have been adopted from
between parties on the subject matter American law.
and the cause.
 Communication of the offer
 Mutual assent and agreement
-offer must be communicated and
-takes place when there is an offer and
acceptance of the offer. received by the offeree. Maybe express
or implied. Kahit nod lang counted yun
 Offer
-proposal made by offerer to an ART 1322 An offer made through an agent is
offeree, indicating willingness to enter accepted from the time acceptance is
into a contract. communicated to him.
-must be certain and seriously
intended, so that liab may be exactly  Communication of Acceptance
 1. To offerer- acceptance must be 1. Option contract-giving consideration of
absolute tapos it must be a certain period within which to accept
communicated to offerer. the offer
2. To agent- act of agent is the act of  Option- privilege given to
the principal. This article applies offeree
only when the offer is made thru  Contract- perfected upon the
the agent and acceptance is acceptance of offer
communicated through him. 2. Option period- period given within
which the offeree can accept the offer
ART 1323. An offer becomes ineffective upon
3. Option Money- money paid or
the death, civil interdiction, insanity, or
promised to be paid in consideration for
insolvency of either party before acceptance is
the option
conveyed.
 Earnest money- partial payment
 Pwede pa marevoke or mawithdraw of the purchase price
yung offer kapag hindi pa ito naaccept A. Withdrawal of offer where period
basta sabihin mo lang na ayaw mo na. stipulated for acceptance
Pero kapag naaccept na perfected na -the offer may be withdrawn as a
siya so bawal na narevoke. matter of right before acceptance,
 Pero pwede rin siya maging ineffective exception is when the offeree paid
dahil sa death, civil interdiction, for the consideration.
insanity, and insolvency of one of the
ART 1325. Unless it appears otherwise business
parties before the conveyance of
advertisements of things for sale are not
acceptance of the offer.
definite offers, but mere invitations to make an
 Dapat sa time na acceptance is offer.
communicated, both parties must be
living and capacitated. a. acceptance of which will perfect a
 Other grounds which render the offer contract
ineffective b. However, if the advertisement is
complete in all the particulars necessary
1. Failure to comply sa terms
in a contract, it may amount to a
2. Expiration ng period definite offer.
3. Destruction nung thing b4
acceptance ART 1326 Advertisements for bidders are simply
4. Rejection nung offer. invitations to make proposals, and the
advertiser is not bound to accept the highest or
ART 1324 When the offerer has allowed the lowest bider, unless the contrary appears
offeree a certain period to accept, the offer may a. It is not the advertiser that is making an
be withdrawn at any tine before acceptance by offer but the bidders. Acceptance by
the advertiser is necessary for a
communication such withdrawn except when
contract to exist.
the option is founded upon consideration, as
b. In Judicial Sales (sales ordered by a
something paid or promised court), sheriff is bound to accept the
highest bid.
 ART 1327. The ff cannot give consent to a 4. Contract is valid where the minor
contract misrepresented his age
1. Unemancipated minors 5. Contract is valid where a minor bet 18-
-persons who have not yet reached the 21 voluntary pays money in fulfillment
age of majority and are still subject to of his oblig
parental authority.
2. Insane or demented persons (MAMAYA NA TO BE HIRAP)
-insanity must exist at the time of
contracting ART 1330. A contract where consent is given
3. and deaf-mutes who doesn’t know how through mistake, fraud, undue influence,
to write intimidation, or violence is voidable.
-However, if the deaf-mute knows how A. CHARACTERISTICS OF CONSENT
to write contract is valid a. It is intelligent- it has the capacity to
act
>The civil code defines on the contrary who hve b. It is free and voluntary- there is no
no capacity to give consent. vitiation of consent by reason of
>Contract entered when one of the parties is mistake violence and intimidation
incapable of giving consent is voidable c. It is conscious and spontaneous-
>Voidable- valid and binding until it is annulled there is no vitiation of consent by
by an action in court. Susceptible rin siya sa reason of mistake, undue influenct,
ratification. and fraud.
> Reason for disqualification is they can be easily B. VICES OF CONSENT
victims of fraud. They can enter into a contract a. Error or mistake
only through a parent. b. Violence or force
c. Undue influence
ART 1328. Contracts entered into during Lucid d. Intimidation or threat
Interval are valid. Contracts agreed to in state of e. Fraud or deceit
drunkness or hypnotic spell are voidable.
ART. 1331 In order that mistake may validate
a. Lucid Interval- period of temporary consent. It should refer to the substance of the
sanity thing which is the object of the contract, or to
b. Drunkness or hypnotic spell- impair the those conditions which have principally moved
capacity of a person to give intelligent one or both parties to enter into the contract.
consent; temporary insanity.
Mistakes as to the identity or qualifications of
ART 1329. The incapacity declared in art 1328 is one of the parties will vitiate consent only when
subject to the modifications determined by law, such identity or qualifications have been the
and is understood to be without prejudice to principal cause of the contract.
special disqualifications established in the laws.
1. When necessaries such as food are Simply mistake of account shall give rise to its
delivered to a minor or other person correction.
w/o capacity, pwede to be basta  Mistake or error- false notion of a
babayaran niya. thing or a fact material to the
2. A minor 18 yrs old or above may contract.
contract for life, health and accident A. NATURE OF MISTAKE
insurance a. Mistake of fact- may arise from the
3. Contract is valid if entered through a ignorance or lack of knowledge
parent or guardian.
 b. Mistake of law- substantial mistake
of fact. That given his consent hais,
the party would not have given his
consent had he known of the
mistake.
B. MISTAKE OF FACT
a.
 -all rights can be the object of contract
exceptions are when they are not
transmissible.
SECTION 2- Object of Contracts 1. Outside the commerce of men- kalye,
tulay, tawiran, ulan, araw, siya.
ART. 1347 All things which are not outside the 2. Impossible physicall, or legally- drugs,
commerce of men, including future things, may pumatay, soil sa Jupiter.
be the object of the contract. All rights which 3. Determinable things- manok na pula
are not transmissible may also be the object of sa bodega ko, yung pinakamaliit kong
contracts. lupa.
4 Future things or rights- wine that a
No contract may be entered into upon future
vineyard is expected to produce, wool
inheritance except in cases expressly authorized
that shall thereafter grow upon a sheep,
by law.
etc. Kapag sa future right naman,
All services which are not contrary to law, royalty that an author is expecting to
morals, good customs, public order, or public receive from his publisher.
policy may likewise be the object of the 5.Intransmissible rights- right to vote,
contract. parental rights, etc.
 FUTURE INHERITANCE
 Object of contract- subject matter; -Property or right not in existence at
obligation created. Object obligation= time of contract, ineexpect pa lang.
object of contract. -Except kapag authorized by law, void
 Maybe things (sale), rights (assignment to.
of credit), or services (agency) -Law permits contracts on future
 REQUISITES: (OBJECT) inheritance—
a. Within commerce of men, can a. in case of donation by reason of
legally be the subject of commercial marriage between future spouses
transaction b. partition of property by act of inter
b. It should not be impossible, legally, vivos (transfer or gift) by a person to
or physically take effect upon his death
c. It must be in existence or capable of  KINDS OF IMPOSSIBILITY
existing a. Physical- if it cannot exist or
d. Must be determinate w/o the need performed (monkey that talks).
of a new contract Kapag sa services:
 REQUISITES: (SERVICES)  Absolute- no one could peform
a. Within commerce of men it (fly like a bird)
b. It should not be impossible, legally,  Relative- when it arises from
or physically the special circumstances
c. Must be determinate (make payment to a dead
 RIGHTS AS OBJECT OF CONTRACT person) or special conditions of
the obligor (to paint portrait by
a blind person)
 b. Legal- contrary to law, morals,
custom, etc.
 Contrary to law= forbidden
by penal law (to sell shabu)
 Contrary to law= rule of law
makes it impossible (make
valid donation w/o public
instrument)

ART. 1349 The object of every contract must be

determinate as to its kind. The fact that the
quantity is not determinate shall not be an
obstacle to the existence of the contract,
provided it is possible to determine the same,
without the need of the new contract between
the parties.

-when the oblig consists in the delivery of a

generic thing, art 1246 governs.

SECTION 3- Cause of Contracts

ART 1350 In onerous contracts the cause is

understood to be, for each contracting party,
the prestation or promise of the thing or service
by another; in r