Podcast
Questions and Answers
What must be true for a written contract to be interpreted correctly?
What must be true for a written contract to be interpreted correctly?
- The terms should be vague to allow for flexibility
- The contract must be signed by all parties involved
- The terms must be clear and uncontested (correct)
- The contract must include multiple amendments
Which of the following describes contracts that can be canceled due to significant losses suffered by the parties?
Which of the following describes contracts that can be canceled due to significant losses suffered by the parties?
- Unenforceable contracts
- Void contracts
- Formal contracts
- Rescissible contracts (correct)
Which type of contract is defined by its execution method as 'formal'?
Which type of contract is defined by its execution method as 'formal'?
- Real contract (correct)
- Gratuitous contract
- Bilateral contract
- Consensual contract
What is a characteristic of all contracts?
What is a characteristic of all contracts?
Which of the following is NOT considered an unenforceable contract?
Which of the following is NOT considered an unenforceable contract?
What type of contract involves agreements made with evident premeditation or cruelty?
What type of contract involves agreements made with evident premeditation or cruelty?
Which of the following best describes the term 'mutuality' in contract law?
Which of the following best describes the term 'mutuality' in contract law?
Which of the following represents a characteristic of unilateral contracts?
Which of the following represents a characteristic of unilateral contracts?
Which situation describes a rescissible contract?
Which situation describes a rescissible contract?
Which type of contract requires a written agreement when it pertains to a matter lasting more than one year?
Which type of contract requires a written agreement when it pertains to a matter lasting more than one year?
What distinguishes a voidable contract from other types of contracts?
What distinguishes a voidable contract from other types of contracts?
What is an example of an unenforceable contract?
What is an example of an unenforceable contract?
Which type of classification of contracts pertains to the responsibilities of the parties involved?
Which type of classification of contracts pertains to the responsibilities of the parties involved?
What characteristic is essential for all contracts to be valid?
What characteristic is essential for all contracts to be valid?
Which type of contract representation could lead to potential fraud claims?
Which type of contract representation could lead to potential fraud claims?
What does mutuality in contract law entail?
What does mutuality in contract law entail?
Flashcards
Rescissible Contract
Rescissible Contract
A contract that can be cancelled due to specific circumstances, like fraud or unfairness.
Void Contract
Void Contract
A contract with no legal effect from the start.
Voidable Contract
Voidable Contract
A contract that one party can choose to cancel.
Unforceable Contract
Unforceable Contract
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Characteristics of a valid Contract
Characteristics of a valid Contract
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Classification of Contract by execution
Classification of Contract by execution
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Unilateral Contract
Unilateral Contract
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Bilateral Contract
Bilateral Contract
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What type of contract is cancellable?
What type of contract is cancellable?
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What contracts lack proper authority?
What contracts lack proper authority?
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What types of contracts are legal but can be cancelled?
What types of contracts are legal but can be cancelled?
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What type of contract is immediately invalid?
What type of contract is immediately invalid?
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What are the characteristics of a valid contract?
What are the characteristics of a valid contract?
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How are contracts classified by execution?
How are contracts classified by execution?
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What is a unilateral contract?
What is a unilateral contract?
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What is a bilateral contract?
What is a bilateral contract?
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Study Notes
Article 1157
Obligation arise from:
1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omissions punished by law
5. Quasi-delicts
CONTRACTS are FOR EVERYONE
CONTRACTS are EVERYWHERE
CONTRACTS - “A contact 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.” (Art.
1305, Civil Code)
● LAW - By Congress (Republic Acts)
● ORDINANCES - By Local Governments
● REGULATIONS - By Administrative Bodies
(DOH, LTO, etc.)
● Law Between the Parties - CONTRACTS
● Constitution
“The law is deemed written into every
contract.” Heirs of Severina San Miguel v
Court of Appeals
Is it possible for a contract to affect the rights of
others who are not parties to it?
● Art. 1311. “Contracts take effect only
between the parties, their assigns and heirs,
except in cases where the rights and
obligations arising from the contract are not
transmissible…”
● A creditor may collect the loan against the
estate (inheritance/property) of a dead
debtor.
● A son cannot inherit the employment of his
dead father.
THE ESSENTIAL ELEMENTS:
● Parties (Obligor & Obligee)
LEGAL CAPACITY
- When a person is authorized by law to
enter into a contract.
Examples of contracts where a party
has no legal capacity:
- Marriage where one of the
parties is below 18 years old.
- Contract of sale of cigarettes to
a 15-year old smoker.
- Contract of donation of real
estate to a foreigner.
If a party in a contract has no legal
capacity, the contract is void.
OBJECT
● Its object must be a service NOT contrary to
law, morals, good customs, public order,
or public policy. (Art. 1347, Civil Code)
● Art. 1407. “The following contracts are
inexistent and VOID from the beginning:
(1) Those whose cause, object or purpose is
contrary to law, morals, good customs,
public order, or public policy.
➔ Some examples of contracts against
LAW:
● Agreement of spouses to separate
● Prostitution
Some examples of contracts against MORALS:
● Simulation of births
Some examples of contracts against GOOD
CUSTOMS:
● Living separately when you reach 18
Some examples of contracts against PUBLIC
ORDER:
● Faked or forged documents (e.g.
diploma)
● Falsification
● Granted to humans, specific professions
only (e.g. Robots in Hospitals as
Doctors)
Some examples of contracts against PUBLIC
POLICY:
● Very high interest rates
● Sale of one’s organs
PUBLIC POLICY:
● State LIMITATIONS on personal rights for
community welfare.
● You don’t violate others’ rights
● You don’t harm others
● Limit on what you can do
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