The Laws On Agency And Contract

Question 1

Different kinds of Contracts:

2. According to degree of importance

Answer 1

Principal: can stand alone; such as a sale, barter, deposit and loan

Accessory: it’s existence and validity is dependent upon another contract such as a pledge, mortgage and guaranty

Question 2

Different kinds of Contracts:

3. According to Name

Answer 2

Nominate: it is with a name such as a pledge, barter and lease

Inominate: without any name

Question 3

Different kinds of Contracts:

4. According to cause

Answer 3

Onerous: there is an exchange of consideration such as sale, barter and lease

Gratuitous: there is no consideration received in exchange for what has been given such as a donation, remission and commodatum

Question 4

What are the stages of contracts?

Answer 4

1. Preparation or conception: the preliminary stage of negotiation and bargain, where parties thresh out any differences until an initial agreement is reached
2. Perfection or birth: is it the moment when the minds of the parties meet or finally agree on all the terms of the contract and the contracts are finalized
3. Consummation or death: it is the stage when the contract is performed and its fulfilled

Question 5

Different kinds of Contracts:

1. According to perfection:

Answer 5

Consensual: perfected by mere consent such as sale or barter

Real: perfected by the delivery of the object of the contract such as a pledge, loan and deposit

Question 6

Essential Requisites it elements of Contracts (Art. 1318, CCP)

Answer 6

1. CONSENT of the contracting parties
   
   • manifestation of the meeting of the offer and the acceptance upon the thing
     A. Nature of OFFER: the offer must be
     CERTAIN
     B. Nature of ACCEPTANCE: acceptance
     must be ABSOLUTE
2. OBJECT CERTAIN is the subject matter of the contract
   A. Object of contracts: within the commerce of man, including future things; transmissible rights and services that are not against the law
   B. Requisites or requirements of object: must be within the commerce of man, lawful and not impossible

3. CAUSE of obligation which is established
           A. Concept
           B. Cause
           C. Onerous 
           D. Remuneratory
           E. Gratuitous 
           F. Requisite of cause

Question 7

Classes of contracts

Answer 7

1. Written and Oral Contracts: both are binding but certain transactions require a written contract: real estate
2. Express and implied Contracts
   Express: contracts expressed in a language understood by the parties
   Implied: when essential features are not written but left open to be inferred from the conduct of the parties
3. Executory and Executed Contracts
   Executed: fully completed by both parties
   Executory: requires something to be done or some act to be performed to be completed
4. Defective contract: do not contain all that essential elements of a contract such as: consent, object certain and cause. (All must be present)

Question 8

Forms of Contracts

Answer 8

1. For VALIDITY: if it is not done it is considered void. i.e. Donations of real property and property in excess of 5k must be in writing
2. For ENFORCEABILITY: must follow why correct form to be considered enforceable
3. For CONVENIENCE: for convenience of both parties, even if form is not follow it is still valid

Question 9

Classification of Defective contracts:

Answer 9

1. Rescissible contracts: contracts that are valid but subject to revocation, cancellation or repeal of law because of damage or economic injury (only to the extent of the damage suffered)
   i. e. Those absentee or ward of a guardian who suffered more that 1/4 value of the object, those entered in fraud or in litigation with court or declares by law (4 years)
2. Voidable contracts: are void because of defective consent – incapacitated, fraud, intimidation and the like, call all be valid once the person is no longer such
3. Unenforceable contracts: contracts not entered without authority, in excess of authority or without legal representation and those that violate the Statute of Frauds
4. Void or inexistent contracts: contracts that go against the law, morals, good custom, public order – is fictitious or did not exist in the time of transaction, impossible services etc

Question 10

An Agency: is created when one person delegates to another person the right to act on his behalf.

What are the three levels of Agency:

Answer 10

1. Universal agency: principal gives the agent blanket powers to transact matters of all types on the principal’s behalf
2. General agency: agent binds the principal in a particular business or trade
3. Special agency: empowers the agent to perform only a particular act or transaction

THUS: then Contract of Agency is when a person binds himself to render some service on behalf of another, it is an extension of the person. Real a sense is converted to juridical presence

Question 11

Agency distinguished from other contracts:

Answer 11

1. Lease of services: an agent has discretionary power, right of representation but can be terminated at will where three people are usually involved (principal, agent and person agent contracted)
2. Independent contractor: self employed and can provide services to several companies and are not required to act in the best interest of their client provided contractual obligations are met

Question 12

What are the kinds of Agency?

Answer 12

According to form: written and oral

According to creation: express and implied agency