Contract Law: Essential Principles

• Juridical capacity does not require the capacity to act
• Not being able to hear or speak is not a restriction of capacity to act
• All contracts require a valid consideration

Obligatory Force of Contracts

• Parties are bound not only by what is expressly provided in the contract, but also by its natural consequences

Mutuality of Contracts

• Contracts must bind both parties; validity and effectivity cannot depend on just one party's will

Relativity of Contracts

• A contract binds the parties, their heirs, successors, and assignees if the contract involves transmissible rights, either by nature, stipulation, or law

Autonomy of Contracts

• Parties can freely stipulate terms, as long as they are not contrary to law, morals, good customs, public order, or public policy

Regulation of Innominate Contracts

• Innominate contracts are regulated by stipulation of parties, quasi-contract/delict principles, rules for analogous nominate contracts, but not by customs of the place

Offer Invalidation

• An offer becomes ineffective upon death, civil interdiction, or insanity/insolvency of either party before acceptance

Offers in Interrelated Contracts

• Advertisements for bidders are invitations to make proposals, advertisers aren't bound to accept highest/lowest bid unless stated otherwise

Solemn Contracts

• Construction contracts of buildings are not required to be written

Rescissible Contracts

• Contracts entered into by minors are not always rescissible

Contract Rescission

• Contract rescission requires a pre-existing credit, intent to defraud, inability to collect credit otherwise, but not necessarily that the object is in the possession of a third party in good faith

Characteristics of Voidable Contracts

• Voidable contracts can be assailed/attacked only in an action for that purpose

Void Contracts

• Pacto de retro is not a void contract

Contracts of Loan

• In a contract of loan or mutuum, the borrower must pay interest to the lender if there is a written agreement

Liability for Minor's Actions

• Schools, administrators, and teachers have principal and solidary liability for damages caused by unemancipated minors under their supervision

Creditor's Rights to Fruits

• The creditor is entitled to the fruits of the thing from the time the obligation to deliver it arises

Contracts Lacking Juridical Capacity

• If one party lacks juridical capacity, the contract is voidable

Both Parties are Minors

• When both parties are minors, the contract is unenforceable

Vitiated Consent

• When one party's consent is vitiated, the contract is voidable

Obligations Based on Equity

• An obligation based on equity and natural law is a natural obligation

Contracts Without Authority

• A contract entered into without authority is unenforceable

Sale Without Authority

• A sale of a car by someone without authority from the owner is unenforceable

Void Contracts Examples

• A sale of land by an agent where their authority is oral, is void

Absolute Simulation

• Absolute simulation of a contract always results in a void contract

Oral Agreements

• An oral agreement for the sale of land is not enforceable if Aligada refuses to deliver

Third Party Favor Stipulation Acceptance

• Contracts remain between parties, assignees, and heirs, except when rights and obligations aren't transmissible by nature, stipulation, or law. If a contract benefits a third party, they can demand fulfillment if they communicate acceptance before revocation

Third Person's Real Rights

• Third persons who come into possession of real rights are not bound thereby

Inducing Contract Violation

• A third person who induces another to violate a contract is liable for damages to the other contracting party

Definition of a Contract

• A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service

Contracting Parties Stipulations

• 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

Contract Binding

• The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them

Void Contracts

• Void from the beginning are those with a cause, object, or purpose contrary to law, morals, good customs, public order, or public policy

Action or Defense Declaration

• The action or defense for the declaration of the inexistence of a contract does not prescribe

Divisible Contract

• In a divisible contract, if illegal terms can be separated from legal ones, the latter may be enforced

Explore fundamental contract law principles. Understand juridical capacity, obligatory force, mutuality, relativity, and autonomy, crucial for legal agreements. Learn how these concepts shape contract validity and enforcement.