Oblicon Contract PDF

Oblicon CONSUMMATION DEFINITION OF A CONTRACT Stage of consummation of contracts A CONTRACT IS A MEETING OF MINDS beings when the parties perform their BETWEEN TWO PERSONS WHEREBY ONE...

Oblicon CONSUMMATION DEFINITION OF A CONTRACT Stage of consummation of contracts A CONTRACT IS A MEETING OF MINDS beings when the parties perform their BETWEEN TWO PERSONS WHEREBY ONE respective commitments under the BINDS HIMSELF WITH RESPECT TO THE OTHER, contract culminating in the death or TO GIVE SOMETHING OR TO RENDER SOME extinguishment of the contract. SERVICE. One or more persons bind himself or CLASSIFICATION OF CONTRACTS themselves with respect to another or According to Perfection: others, or reciprocally, to the fulfillment 1. CONSENSUAL: Perfected by mere of a prestation to give, to do or not consent such as sale and barter todo. 2. REAL: Perfected by the delivery of the object of the contract, such as pledge, STAGES OF CONTRACT loan and deposit. Negotiation Perfection According to Degree of Importance: Consummation 1. PRINCIPAL: can stand alone such as a sale, barter, deposit, and loan NEGOTIATION 2. ACCESSORY: its existence and validity is Covers the period from the time the dependent upon another contract such prospective contracting parties indicate as pledge, mortgage, guaranty, and interest in the contract to the time the contract of agency contract is concluded (perfected) At any time prior to perfection of the According to Name: contract, either negotiating party may 1. NOMINATE: with a special name such, stop the negotiation. as a pledge, barter, lease, agency, Negotiating can be canceled partnership 2. INNOMINATE: without any name PERFECTION The contract is perfected in consensual According to Cause: contracts at the moment there is a 1. ONERUS: there is an exchange of meeting of minds upon the object and consideration, such sale, barter, and the cause thereof. lease In real contracts, it is perfected upon 2. GRATUITOUS: there is no consideration, delivery of the thing which is the object received in exchange for what has been thereof. given, such as donation, remission and Meeting of the Minds ( Consent ) commodatum or gratuitous loan ELEMENTS OF A CONTRACT REQUISITES OF CONSENT Essential elements: those without 1. Must be manifested by the concurrence which there can be no contract (Article of the offer and acceptance 1318) 2. Parties must possess the necessary legal Common Elements: Present in all contracts capacity 1. Consent 3. Must be intelligent, free, spontaneous, 2. Object and real 3. Consideration DISCERNMENT Special Elements: Only in certain contracts such You know the full consequences of what as delivery in real contracts, and form in solemn you are doing. contracts. Extraordinary elements: peculiar to specific OFFER DEFINED contract ( price in contract of sale ) It is a proposal made by one party (offerrer) to Natural Elements: Those which are derived another to enter into a contract. It is more than from the nature of the contract and ordinarily an expression of desire or hope. It is really a accompany the same ‘ they are presumed by promise to act or to refrain from acting on law ( warranty against eviction in sale, although condition that the terms thereof are accepted the contracting parties may increase, diminish by the person (offeree ) to whom it is made or even suppress it ) OFFER MUST BE CERTAIN ESSENTIAL REQUISITES OF A CONTRACT The offer must be certain or definite and clear, ARTICLE 1318: There is no contract unless the and not vague or speculative so that the liability following requisites concur: ( or the rights) of the parties may be exactly Consent of the contracting parties fixed because it is necessary that the Object certain which is the subject acceptance be identical with the offer to create matter of the contract a contract without any further act on the pat of Consideration or Cause of the obligation the offeror. which is established ACCEPTANCE DEFINED CONSENT DEFINED: It is the manifestation by the offeree of his It is the conformity of wills and with assent to the terms of the offer. Without respect to contracts, it is the agreement acceptance, there can be no meeting of the of the will of one contracting party with mind between the parties. that of another or others, upon the Remember: A MERE OFFER PRODUCES NO object and terms of the contract. OBLIGATION Consent is manifested by the meeting of the offer and the acceptance upon the ACCEPTANCE MUST BE ABSOLUTE thing and the cause which are to The acceptance of an offer must be absolute, constitute the contract. unconditional, or unqualified, that is, it must be identical in all respect with all that of the offer so as to produce the consent or meeting of the Where under the circumstances such minds necessary to perfect a contract. silence constitutes estoppel. - Estoppel prevents one person FORM OF ACCEPTANCE OF OFFER from contradicting an action or An acceptance may be: statement from the past. 1. Express: may be oral or written 2. Implied: one that is inferred from act or WHEN OFFER BECOMES INEFFECTIVE conduct. 1. Upon the death of either party before acceptance is conveyed QUALIFIED ACCEPTANCE 2. Civil Interdiction of either party before Qualified acceptance merely constitutes acceptance is conveyed a counter-offer or a new proposal 3. Insanity of either party before which, in law, is considered a rejection acceptance is conveyed or of the original offer and an attempt by 4. Insolvency of either party before the parties to enter into a contract on a acceptance is conveyed. different basis. A qualified acceptance must, in turn, be BUSINESS ADVERTISEMENT OF THINGS FOR accepted absolutely in order that there SALE will be a contract. Business advertisement of things for An acceptance with a Condition. sale are not definite offers, acceptance of which will not perfect a contract but ACCEPTANCE MADE BY LETTER OR TELEGRAM are merely invitations to the reader to GENERAL RULE: Acceptance made by letter or make an offer or only as proposals. telegram does not bind the offeror Advertisements for bidders is mere EXCEPTION: Except from the time it came to his invitation to submit proposals. knowledge. The contract, in such a case, is Advertisers is not bound to accept the presumed to have been entered into the place highest or lowest bidder unless the where the offer was made. contrary appears. ACCEPTANCE BY SILENCE OR INACTION GENERAL RULE: Silence cannot be constructed as acceptance. The acceptance must be affirmatively and clearly made and evidenced by words or some acts or conduct communicated to the offeror. XPN : Where the parties agree expressly or implied, that it shall amount to acceptance Where specific provisions of law so declare WHO CANNOT GIVE CONSENT THINGS WHICH CANNOT BE OBJECT OF The following cannot given consent to a CONTRACTS contract: General Rule: All things or services may be the 1. Unemancipated minors object of contracts. 2. Insane or demented persons EXCEPT: 3. Deaf Mutes who do not know how to 1. Things outside the commerce of men write 2. Intransmissible Rights 3. Future inheritance except in cases RULE WHEN INCAPABLE PARTIES ENTER INTO A expressly authorized by law CONTRACT 4. Services contrary to law, morals, good 1. If one of the parties is incapable of customes, public order or public policy giving consent: VOIDABLE 5. Impossible things or services 2. If both parties are incapable of giving 6. Objects not possible of determination consent: Unenforceable unless ratified as to their kind VICES OF CONSENT If consent is obtained thru the following vices, the consent make a contract voidable: 1. Violence 2. Intimidation 3. Mistake 4. Fraud 5. Undue Influence OBJECT DEFINED Object is the thing or right or service which is the subject matter of the obligation arising from the contract REQUISITES OF A VALID OBJECT REQUISITES: 1. Must be within the commerce of Man 2. Should be real or possible 3. Should be licit ( legal) 4. Should be determinate, or at least possible of determination as to its kind