Contracts (Ch 1-2) Flashcards
(42 cards)
What is Article 1305
A contract is 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
What is Article 1306
The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals. good customs, public order, or public policy.
What is Article 1307
Innominate contracts shall be regulated by the stipulations of the parties by the provisions of Titles 1 and 2 of this book, by the rules governing the most analogous nominate contracts and by the customs of the place.
(Basically, contracts with no designation in law is regulated by party stipulation, then the provisions of the book and the rules governing most analogous nominate contracts and by the customs of the place.)
What is Article 1308
Contracts must bind both contracting parties, its validity or compliance cannot be left to the will of 1 of them
What is Article 1309
The determination of the performance may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties
What is Article 1310
The determination shall not be obligatory if it is evidently inequitable, in such case, the courts shall decide what is equitable under the circumstances
(Basically if the determination made by a 3rd party is unjust or unequitable. then its non binding)
What is Article 1311
Contracts take effect only between the parties, their assigns, and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or provision by the law. The heir is not liable beyond the value of the property he received from the decadent.
If the contract should contain some stipulation in favor of a third person, he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient. The contracting parties must have clearly and deliberately conferred a favor upon a third person.
What is Article 1312
In contracts creating real rights, third persons who come into possession of the object of the contract are bound thereby, subject to the provisions of the mortgage Law and the Land Registration laws
What is Article 1313
Creditors are protected in cases of contracts intended to defraud them.
What is Article 1314
Any third person who induces another to violate his contract shall be liable for damages to the other contacting party.
What is Article 1315
Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be keeping with good faith, usage and law.
What is Article 1316
Real contracts, such as deposit, pledge, and commodatum, are not perfected until the delivery of the object of the obligation.
What is Article 1317
No one may contract in the name of another without being authorized by the latter unless he has by law, a right to represent him.
A contract entered into in the name of another by one who has no authority or legal representation or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party.
What is Article 1318 (This is the beginning of CH 2)
There is no contract unless the following requisites concur:
1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract
3. Cause of the obligation which is established
What is Article 1319
Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a counter-offer.
Acceptance made by letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract, in such a case, is presumed to have been entered into the place where the offer was made.
What is Article 1320
An acceptance may be expressed or implied
What is Article 1321
The person making the offer may fix the time, place, and the manner of acceptance, all of which may be complied with
What is Article 1322
An offer made through an agent is accepted from the time of acceptance is communicated to him
What is Article 1323
An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party, before acceptance is conveyed
What is Article 1324
When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn at anytime before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, as something paid, or promised.
( If the offeree has provided something of value (e.g., money or a promise) to keep the offer open, then the offer cannot be withdrawn until the specified period ends. )
What is Article 1325
Unless it appears otherwise, business advertisements of things for sale are not definite offers, but mere invitations to make an offer.
What is Article 1326
Advertisements for bidders are simply invitations to make proposals. and the advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears
What is Article 1327
The following cannot give consent:
1. Unemancipated Minors
2. Insane or Demented Persons, and deaf-mutes who do not know how to read and write
What is Article 1328
Contracts entered into during a lucid interval are valid, contracts agreed to in a state of drunkenness or during a hypnotic spell are voidable.
