Article 1305 - Contracts

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Questions and Answers

What distinguishes an onerous contract from a gratuitous contract?

  • A gratuitous contract requires both parties to exchange services.
  • A gratuitous contract is always written down.
  • An onerous contract involves only one party benefitting.
  • An onerous contract requires a reciprocal obligation between parties. (correct)

Which type of contract is primarily motivated by the desire to reward a previously rendered service?

  • Formal contract
  • Gratuitous contract
  • Onerous contract
  • Remuneratory contract (correct)

What governs a formal contract according to the content provided?

  • It can be formed through implied consent only.
  • It must be a verbal agreement between parties.
  • It must be in a specific format required by law. (correct)
  • It requires no particular structure.

What does ARTICLE 1370 state about unclear contract terms?

<p>The evident intention of the parties prevails over unclear terms. (B)</p> Signup and view all the answers

Which characteristic best defines a gratuitous contract?

<p>It is based on the liberality of one party. (B)</p> Signup and view all the answers

What is a primary element a contract must possess to be considered valid?

<p>Agreed-upon terms must lack ambiguity. (B)</p> Signup and view all the answers

In terms of interpretation, what takes precedence if the literal terms of a contract contradict the evident intention of the parties?

<p>The evident intentions of the parties take priority. (A)</p> Signup and view all the answers

What role do motives play in the formation of a contract?

<p>They are irrelevant to the contract's validity. (C)</p> Signup and view all the answers

What stage of a contract involves the steps taken by the parties leading to the perfection of the contract?

<p>Preparation or negotiation (B)</p> Signup and view all the answers

Which of the following is a requirement for a valid contract?

<p>Meeting of minds regarding the subject and cause (D)</p> Signup and view all the answers

Which type of innominate contract is characterized as 'I do that you may do'?

<p>facto ut facias (B)</p> Signup and view all the answers

What happens to unauthorized contracts entered into by a person without authority?

<p>They are unenforceable unless ratified (C)</p> Signup and view all the answers

According to the principle of enforceability, which of the following statements is correct?

<p>Both parties must consent for the contract to be binding (C)</p> Signup and view all the answers

What does the term 'meeting of minds' refer to in contract law?

<p>The mutual understanding and agreement on contract terms (C)</p> Signup and view all the answers

Which of the following is a misrepresentation of the non-transmissibility of rights and obligations in a contract?

<p>Obligations are always transferable to heirs (C)</p> Signup and view all the answers

What is the most crucial outcome of a legitimate 'ratification' of a contract?

<p>It affirmatively acknowledges the contract's existence (D)</p> Signup and view all the answers

What are contracts that are perfected by mere consent regarding the subject matter called?

<p>Consensual Contracts (A)</p> Signup and view all the answers

An indivisible contract can be satisfied independently by each part.

<p>False (B)</p> Signup and view all the answers

What are the three classifications of perfection of contracts?

<p>Consensual Contracts, Real Contracts, Solemn Contracts</p> Signup and view all the answers

A contract that requires delivery of the subject matter for perfection is called a _____ contract.

<p>Real</p> Signup and view all the answers

Which of the following is a limitation on contracts?

<p>Good customs (B)</p> Signup and view all the answers

Match the types of contracts with their characteristics:

<p>Consensual Contracts = Perfected by mere consent Real Contracts = Perfected by delivery of subject matter Solemn Contracts = Requires compliance with formalities Indivisible Contracts = Dependent on all parts for satisfaction</p> Signup and view all the answers

What is the consequence of establishing stipulations contrary to law in a contract?

<p>The contract may be deemed invalid or unenforceable.</p> Signup and view all the answers

All contracts can be fulfilled independently without regard for one another.

<p>False (B)</p> Signup and view all the answers

What is required for an offer to be valid?

<p>It must be certain and seriously intended. (B)</p> Signup and view all the answers

A contract signed under duress is voidable.

<p>True (A)</p> Signup and view all the answers

What is meant by 'lucid interval' in contract law?

<p>A temporary period of sanity.</p> Signup and view all the answers

A contract where consent is given through _________ is voidable.

<p>mistake</p> Signup and view all the answers

Match the terms related to consent with their definitions:

<p>Intelligent = Means the party understands the nature of the agreement Free and voluntary = Means consent is given without coercion Conscious = Indicates the awareness of the action being taken</p> Signup and view all the answers

Which of the following is NOT a ground for annulling a voidable contract?

<p>Agreement from both parties (A)</p> Signup and view all the answers

Acceptance of an offer must be clear and absolute.

<p>True (A)</p> Signup and view all the answers

What is the term for a proposal made by one party indicating a willingness to enter into a contract?

<p>Offer</p> Signup and view all the answers

What is an example of a form of impossibility in contracts?

<p>Physical impossibility (C)</p> Signup and view all the answers

Lesion refers to any damage caused by an unjust or inadequate price.

<p>True (A)</p> Signup and view all the answers

What does 'cause' refer to in the context of contracts?

<p>The essential reason or purpose for which contracting parties enter into the contract.</p> Signup and view all the answers

A contract that is _____ is one where the object or service is contrary to law or morals.

<p>illegal</p> Signup and view all the answers

Which statement best describes a relative impossibility in contracts?

<p>It arises from special circumstances surrounding the case. (A)</p> Signup and view all the answers

Match the following terms with their correct definitions:

<p>Illegality of cause = Occurrence of an unlawful purpose in a contract Inchoate rights = A right of expectancy until a condition occurs Falsity of cause = A statement in a contract that is not true Lesion = Damage caused by unjust pricing</p> Signup and view all the answers

Contracts are obligatory in whatever _____ they may have been entered into, as long as valid requirements are present.

<p>form</p> Signup and view all the answers

What are the essential elements of a contract?

<p>Consent, Object, Cause (D)</p> Signup and view all the answers

An invitation to make an offer is considered a definite offer.

<p>False (B)</p> Signup and view all the answers

Inchoate rights become definite upon the death of the decedent.

<p>True (A)</p> Signup and view all the answers

List one group of persons who cannot give consent in contract law.

<p>Unemancipated minors, insane persons, or deaf-mutes who cannot write.</p> Signup and view all the answers

What is required for misrepresentation by a third person to vitiate consent?

<p>It must create substantial mistakes and be mutual (D)</p> Signup and view all the answers

Ignorance of the law excuses a person from compliance with it.

<p>False (B)</p> Signup and view all the answers

The three essential elements of a contract are consent, object, and _____ .

<p>cause</p> Signup and view all the answers

Match the following legal terms with their definitions:

<p>Consent = Agreement between parties to enter a contract Object = Subject matter of the contract Cause = Reason for the obligation created by the contract Demented persons = Individuals unable to give consent due to insanity</p> Signup and view all the answers

What defines causal fraud in the context of contract law?

<p>Causal fraud is defined as a ground for the annulment of a contract, but it may also result in an action for damages.</p> Signup and view all the answers

Causal fraud should not have been known by the ______ contracting parties.

<p>other</p> Signup and view all the answers

Which of the following is NOT considered a natural element of a contract?

<p>Ratification by a guardian (C)</p> Signup and view all the answers

Which of the following describes the type of force used to acquire consent that is considered violence?

<p>Serious or irresistible force (B)</p> Signup and view all the answers

A deaf-mute person can give valid consent if they are able to write.

<p>True (A)</p> Signup and view all the answers

What is required for fraud to render a contract voidable?

<p>The fraud must be serious and not employed by both contracting parties.</p> Signup and view all the answers

What is required for consent to be considered valid in contracts?

<p>A meeting of the offer and acceptance.</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Fraud = Deceit that affects consent Intimidation = Compelling consent through fear of imminent evil Mutual Mistake = Both parties are mistaken about a fact Violence = Use of serious force to obtain consent</p> Signup and view all the answers

Misrepresentation made in good faith may constitute ______, but it is not considered fraudulent.

<p>error</p> Signup and view all the answers

What constitutes fraud in the context of contracts?

<p>Failure to disclose facts when required (D)</p> Signup and view all the answers

Future things cannot be valid objects of a contract.

<p>False (B)</p> Signup and view all the answers

What type of contracts cannot be established regarding future inheritance?

<p>Contracts unless authorized by law</p> Signup and view all the answers

The object of a contract is its ______.

<p>subject matter</p> Signup and view all the answers

Match the following contract terms with their definitions:

<p>Fraud = Failure to disclose necessary facts Future inheritance = Property or rights not yet owned False cause = Invalid basis for a contract Impossible objects = Elements that cannot form a contract</p> Signup and view all the answers

Which of the following best describes 'absence of cause' in contracts?

<p>Total lack of any valid consideration (B)</p> Signup and view all the answers

An impossible object can be the subject of a valid contract.

<p>False (B)</p> Signup and view all the answers

A statement of ______ in contracts shall render them void unless proven otherwise.

<p>false cause</p> Signup and view all the answers

Which of the following is NOT considered an essential element of a contract?

<p>Legitimacy (D)</p> Signup and view all the answers

What are 'natural elements' in the context of contracts?

<p>Assumed elements that are presumed to exist in contracts (C)</p> Signup and view all the answers

Which of the following best describes the manner in which consent is manifested?

<p>By the meeting of an offer and acceptance (C)</p> Signup and view all the answers

Which group of individuals is deemed incapable of giving valid consent to a contract?

<p>Insane or demented persons (B)</p> Signup and view all the answers

What are the 'accidental elements' in a contract?

<p>Specific stipulations or terms unique to a contract (A)</p> Signup and view all the answers

Which statement correctly reflects the enforceability of contracts?

<p>Contracts entered during lucid intervals by insane persons are valid. (B)</p> Signup and view all the answers

Which option describes 'special elements' in contracts?

<p>Only applicable to specific contracts (B)</p> Signup and view all the answers

Which of the following individuals can give valid consent to a contract despite being deaf-mute?

<p>Deaf-mutes who can communicate in writing (A)</p> Signup and view all the answers

Flashcards

Valid Contract

A contract that meets all legal requirements and is enforceable.

Stages of Contract Life

The steps involved in creating, agreeing upon, and completing a contract.

Unauthorized Contract

A contract made by someone without proper authority.

Ratification

Approval of an unauthorized contract by the person on whose behalf it was made.

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Do ut des

I give so that you may give; an example of an innominate contract.

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Do ut facias

I give so that you may do; an example of an innominate contract.

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Facto ut des

I do so that you may give; an example of an innominate contract.

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Facto ut facias

I do so that you may do; an example of an innominate contract.

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Formal Contracts

Contracts that require a specific form, such as a written document, to be valid.

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Onerous Contract

A contract where both parties are obligated to do something, typically exchange goods or services.

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Gratuitous Contract

A contract where one party gives a gift without expecting anything in return.

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What determines if a contract is valid?

All essential elements of the contract are present, meeting legal requirements.

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What is a 'Cause' in a contract?

The reason or purpose behind a contract, motivating both parties to agree.

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Literal meaning vs. Intention

When interpreting a contract, the literal meaning of the words should prevail unless it contradicts the parties' clear intent.

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Interpretation of a contract is...

Determining the meaning of the terms and words the contract uses.

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What are the motives in a contract?

The personal or private reasons why parties enter into a contract.

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What are the 3 essential elements of a contract?

Consent of contracting parties, object certain which is the subject matter of the contract, and cause of obligation established.

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Consent (Contracts)

The mutual agreement of the parties to the contract. It involves a meeting of the minds on the terms of the agreement.

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Object of a Contract

The specific subject matter of the contract, which must be certain, lawful, and possible.

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Cause of Obligation

The reason or purpose behind the contract, which must be lawful and real.

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Business Advertisement

Usually not considered a definite offer but rather an invitation to make an offer.

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Who cannot give consent?

Unemancipated minors, insane or demented persons, and deaf-mutes who cannot write.

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Lucid Intervals

Periods of sanity for individuals with mental illness; contracts made during these intervals are valid.

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EPSO JURE

A legal term meaning 'by operation of law'; parents are the legal guardians of their children.

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Contract

A legally binding agreement where one party agrees to give or do something for another.

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Nominate Contract

A contract with a specific name and predefined rules.

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Innominate Contract

A contract without a specific name, based on agreed terms.

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Unilateral Contract

A contract where only one party is obligated.

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Bilateral Contract

A contract where both parties are obligated to the agreement.

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Essential Elements of a Contract

The crucial components needed for a contract to be valid (Consent, Object, Cause).

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Consent

Mutual agreement between parties in a contract.

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Cause of a Contract

The reason or purpose behind entering the contract.

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What is Consent in a Contract?

The meeting of the minds between contracting parties, agreeing on the terms of the agreement.

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What is the Object of a Contract?

The specific thing or subject matter of the contract. It must be clear, legal, and possible.

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What is the Cause of a Contract?

The reason or purpose behind entering the contract. It must be legal and real.

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Principal Contract

A contract that exists independently and does not rely on another contract for its existence, serving as a foundation for other related contracts.

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Accessory Contract

A contract that depends on another (principal) contract for its existence and validity, adding extra conditions or terms.

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Indivisible Contract

A contract where each part is dependent upon the others for satisfactory performance. If one part fails, the entire contract fails.

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Divisible Contract

A contract where one part can be performed independently of the others. If one part fails, the other parts can still be fulfilled.

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Consensual Contract

A contract perfected by the mere consent of the parties regarding the subject matter and the cause of the contract.

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Real Contract

A contract perfected by the delivery of the subject matter of the contract.

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Solemn Contract

A contract requiring specific formalities prescribed by law to be valid. Missing these formalities renders the contract invalid.

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Public Order

The principles and laws that ensure public safety and well-being, including public health and morality, that contracts cannot violate.

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Voidable Contract

A contract that can be canceled by one or both parties due to a problem with consent, like mistake, violence, or fraud.

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What makes consent valid?

Consent is valid when it is intelligent, free and voluntary, and conscious or spontaneous. It means the parties understand the terms, aren't forced, and make a deliberate choice.

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Offer (Contracts)

A proposal made by one party to another indicating a willingness to enter into a contract. It must be certain and seriously intended.

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Acceptance (Contracts)

The manifestation by the offeree that they agree to all terms of the offer. It must be absolute and clear.

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What are the 'Vices of Consent'?

These are problems that can affect the validity of consent in a contract. They include: error/mistake, violence/force, intimidation/threat/duress, undue influence, fraud/deceit.

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Mistake (Contracts)

A misunderstanding about the terms of the contract that can make it voidable if it relates to the main substance of the contract or the conditions that influenced the parties to agree.

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Future Things

Things that may or may not exist in the future, but have the potential to become real. These can be valid objects of a contract if their existence is possible.

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Can inheritance be a contract object?

No, future inheritance is generally NOT a valid object of a contract EXCEPT in cases specifically allowed by law.

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What are the requirements for a valid 'object'?

The object of a contract must be legal, possible, and certain. This means it cannot violate laws, be impossible to fulfill, or be vague or unclear.

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False Cause in Contracts

If a contract is based on a false reason, it is void unless another true and lawful reason can be proven.

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Cause vs. Lack of Cause

Cause is the valid reason for a contract. Lack of cause means there is NO valid reason, making the contract void. It's different from inadequate cause (not enough reason).

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What are 'services' in a contract?

Services are work or actions that can be the object of a contract, as long as they are legal and not against public order.

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What is 'Concealment' in Contracts?

Not revealing important facts when there's a duty to do so, like in confidential relationships, is considered fraud.

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What are Inchoate Rights?

Inchoate Rights are rights that are not yet fully formed or realized but have the potential to become actual rights in the future.

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What is an Example of Inchoate Rights?

An example of Inchoate Rights is the right of inheritance, where someone has the potential to inherit property in the future but the right is not yet established.

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What does 'Illegality of Cause' mean in a contract?

'Illegality of Cause' means that the reason or motivation behind a contract is unlawful or illegal. This makes the contract invalid.

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What is 'Falsity of Cause'?

Falsity of Cause means that the contract states a valid reason or purpose, but that reason is not actually true.

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What is 'Lesion' in a contract?

Lesion is a significant disparity between the value of a contract's subject matter and the agreed price, resulting in a substantial loss for one party.

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What are the two types of 'Impossibility' in a contract?

The two types of Impossibility in contracts are: 1) Physical Impossibility: The subject of the contract cannot be performed, either absolutely or relatively. 2) Legal Impossibility: The contract is against the law.

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What is the 'Form of Contracts'?

The 'form of contracts' refers to the manner in which a contract is executed or manifested. This includes how it is written, signed, and witnessed.

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What is the main difference between 'Formal Contracts' and 'Informal Contracts'?

Formal contracts require a specific form or formality for validity while Informal contracts are valid regardless of the form being used, as long as all essential requirements are in place.

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Mistake of Law

An error in a contract caused by ignorance of a law, its interpretation, or its legal effect. This does not usually void a contract, as the saying goes, "ignorance of the law excuses no one from compliance therewith."

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Violence (Contract)

A threat or force strong enough to overwhelm someone's will to make them enter into a contract. It must be serious or irresistible to be considered violence.

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Intimidation (Contract)

Entering into a contract due to fear of a serious harm to yourself, your family, or your property. The harm must be imminent and grave.

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Misrepresentation by a Third Party

When someone not involved in the contract provides false information, potentially causing a mistake in the agreement. The mistake must be substantial and mutual (both parties involved) to affect the contract's validity.

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Good Faith Misrepresentation

Providing false information unknowingly. It is not considered fraudulent, but it still may cause an error in a contract.

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Fraud in a Contract

Deliberately giving false information to trick someone into a contract. This can make the contract voidable if it's serious and not used by both parties.

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Causal Fraud

A major deception that makes someone agree to a contract incorrectly. It can lead to the contract being annulled or result in a damage claim.

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Requirements of Causal Fraud

To be valid, causal fraud must be severe, not known by the other party, and used by only one party. If both parties participate in fraud, it is not grounds to void the contract.

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Study Notes

Article 1305 - Contracts

  • Contracts are agreements where one party binds themselves to another to give or do something.
  • Contracts are classified as nominate (with specific names) or innominate (without specific names).
  • Unilateral contracts bind only one party, while bilateral contracts bind both.
  • Accessory contracts depend on other contracts for their validity, while principal contracts don't.
  • Indivisible contracts require all parts to be fulfilled, while divisible contracts allow parts to be performed independently.

Limitations of Contracts

  • Contracts cannot violate the law, morals, good customs, public order, or public policy.
  • Valid contracts meet all legal requirements and are legally enforceable.

Kinds of Innominate Contracts

  • 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: I do that you may do.

Perfection of Contracts

  • Contracts are perfected by consent.
  • Parties are bound not only by the agreed terms but also by consequences that follow from good faith, usage, and law.
  • Consensual contracts are perfected by agreement (e.g., sales).
  • Real contracts are perfected by delivery (e.g., deposit).
  • Solemn contracts require specific formalities (e.g., donations of real property).

Stages of a Contract

  • Preparation/Negotiation: Parties take steps towards agreement.
  • Perfection/Birth: Parties reach agreement.
  • Consummation/Termination: Contract is fulfilled.

Essential Elements of a Contract

  • Consent: Agreement of wills.
  • Object: Subject matter of contract.
  • Cause: Reason for entering the contract.
  • Error (Mistake): False belief about the contract's object or conditions.
  • Violence: Serious or irresistible force against contracting party.
  • Intimidation: Fear for a serious threat.
  • Undue influence: Overpowering another's will.
  • Fraud: Deceptive actions causing consent.

Unauthorized Contracts

  • Unauthorized contracts are unenforceable, but ratification makes them valid.

Form of Contracts

  • Contracts are generally valid in whatever form they are made, provided essential requirements are met.
  • Some contracts require specific forms for validity or enforceability (e.g., formal contracts).

Interpretation of Contracts

  • Clear contract terms are interpreted literally, but intent prevails over literal meanings.
  • Interpreted with consideration for the nature & object of the contract.
  • Contemporaneous and subsequent actions are relevant to determining intent.

Kinds of Defective Contracts

  • Rescissible: Valid but can be rescinded due to injustice.
  • Voidable: Valid but can be challenged due to a vice of consent.
  • Unenforceable: Not enforceable until ratified.
  • Void/Inexistent: Without legal effect from the start.

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