OBLICON-PRELIM-coverage-2023.docx

**CONTRACT** -- meeting of minds between 2 persons to give something or to render service. **3 ELEMENTS OF CONTRACT** 1.** ESSENTIAL** -- w/o them, contract cannot exist      a. CONSENT of contracting parties      b. OBJECT CERTAIN -- subject matter      c. CAUSE/CONSIDERATION In some contract...

**CONTRACT** -- meeting of minds between 2 persons to give something or to render service. **3 ELEMENTS OF CONTRACT** 1.** ESSENTIAL** -- w/o them, contract cannot exist      a. CONSENT of contracting parties      b. OBJECT CERTAIN -- subject matter      c. CAUSE/CONSIDERATION In some contracts, ff are also essential:      d. FORM      e. DELIVERY 2. **NATURAL** -- found in certain contract, presumed to exist unless stipulated 3. **ACCIDENTAL** -- various particular stipulations that may be agreed upon by contracting parties **(7) CLASSIFICATION OF CONTRACTS** According to: **1. PERFECTION/FORMATION**      a. CONSENSUAL -- perfected by mere consent      b. REAL -- perfected by delivery      c. FORMAL/SOLEMN -- special formalities are essential before perfection of contract **2. PARTIES OBLIGATED**      a. UNILATERAL -- only 1 has obligation      b. BILATERAL -- both parties require to render reciprocal prestations **3. CAUSE**      a. ONEROUS -- exchange of considerations      b. GRATUITOUS -- no consideration received in exchange of what is given      c. REMUNERATORY -- something is given for benefit/service that had been rendered previously **4. RISK OF FULFILLMENT**      a. COMMUTATIVE -- equivalent values are given by both parties      b. ALEATORY -- fulfillment of contract depends on chance (eg. insurance) **5. IMPORTANCE**      a. PRINCIPAL -- contract may stand alone (eg. sale, partnership)      b. ACCESSORY -- existence depends on another contract (pledge, guarantee)      c. PREPARATORY -- contract not an end by itself but a means thru w/c other contracts may be made (eg. agency) **6. NAME**      a. NOMINATE -- contract given a particular/special name (eg. partnership)      b. INNOMINATE -- not given special name (eg. I give that you may give) **7. SUBJECT MATTER**      a. Contracts involving things      b. Contracts involving rights/credits      c. Contracts involving services **3 STAGES OF CONTRACT** 1. PREPARATION/CONCEPTION -- preparatory steps to perfect contract 2. PERFECTION/BIRTH -- meeting of minds between 2 contracting parties **5 BASIC PRINCIPLES/CHARACTERISTICS OF A CONTRACT** **1. PRINCIPLE OF AUTONOMY (liberty to contract)** Provided they are not contrary to: **2. MUTUALITY OF CONTRACTS** **3. RELATIVITY OF CONTRACTS**       a. by their nature       b. by stipulation (stipulation por autri)       c. by provision of law **4. CONSENSUALITY OF CONTRACTS** \- Contracts are perfected by mere consent Exceptions:       a. REAL CONTRACTS -- perfected by delivery       b. FORMAL/SOLEMN CONTRACTS -- special form required for its perfection **5. OBLIGATORINESS OF CONTRACTS** **4 KINDS OF INNOMINATE CONTRACTS** **4 RULES FOR INNOMINATE CONTRACTS** **STIPULATION POR AUTRI** \- stipulation in *favor of 3^rd^ person* **5 REQUISITES OF STIPULATION POR AUTRI** **CONSENT** \- meeting of *offer (certain) & acceptance (absolute)* upon a thing **5 REQUISITES OF CONSENT** **7 RULES ON OFFER/ACEPTANCE** **3 persons who CANNOT GIVE CONSENT to a contract** (if entered into, contract is [voidable]) **DEMENTED PERSON** -- NOT exactly insane; difficult to distinguish right from wrong **LUCID INTERVAL** -- period when an INSANE has acquired SANITY *temporarily*, therefore, capacitated to enter into a valid contract **2 RULES on persons WHO CANNOT GIVE CONSENT to a contract** **5 VICES OF CONSENT** \- **NOTE:** When there is a DEFECTIVE CONSENT of EITHER of parties, contract is [voidable]; Remedy: *annulment of contract.* **2. FRAUD/DOLO** \- when through *insidious words/machinations* of one of the parties, INDUCED the other to enter into a contract, & w/o them, he will not agree. DOLO CAUSANTE DOLO INCIDENTE -------------------------------------------- ----------------------------------------------------- Serious Not serious cause induces party to ENTER into contract NOT the cause to enter into contract make contract [voidable] contract is valid; liable for [damages] **3. VIOLENCE** \- *serious/irresistible force* is employed. **4. INTIMIDATION** \- 1 of the parties is compelled by a *reasonable & well-grounded fear of an imminent & grave evil* upon his person/property to give his consent. **VIOLENCE** **INTIMIDATION** --------------------------- -------------------------------------------------- External Internal Physical contact/coercion NO physical coercion; ONLY MENTAL/MORAL coercion **5. UNDUE INFLUENCE** \- a person takes *improper advantage of his power* over other's will, depriving the other to his *reasonable freedom of choice.* **SIMULATION OF CONTRACT** \- process of INTENTIONALLY deceiving others by producing a contract not really exist (absolute simulation), or w/c is different from true agreement (relative simulation). **7 REQUISITES OF OBJECT OF CONTRACT** **4 REQUISITES OF CAUSE**