Oblicon: Business Law - Group 13 Report (2024)

oblicon business law MEMBERS: FUNDADOR, ELOISA NERIZA C. GALICIA, CASSANDRA LABANIEGO, KIMBERLY CHAPTER 2 SECTION 2: OBJECT OF CONTRACT ART. 1347. All things which are not outside the commerce of men, including future things, may be the object of a contract. All rig...

oblicon business law MEMBERS: FUNDADOR, ELOISA NERIZA C. GALICIA, CASSANDRA LABANIEGO, KIMBERLY CHAPTER 2 SECTION 2: OBJECT OF CONTRACT ART. 1347. All things which are not outside the commerce of men, including future things, may be the object of a contract. All rights which are not intransmissible may also be the object of contracts. Actual object of contract. An object is something sought to be attained or accomplished. From the point of view of writer Castan, the object of the contract is the obligation created by it. Thus, the thing, service or right which is the object of the obligation is also the object of contract. Possible objects of contracts. All things that are not outside the commerce of men including future things. Something is outside the commerce of men if it cannot be lawfully appropriated by a private person as his own. All rights which are not intransmissible may also be the object of contracts.  ART. 1348. Impossible things or service cannot be the object of contracts. (1272) Impossible things defined. Impossibility is the state of not being able to exist, occur or be done. “Impossibilium nulla obligatio est.” It is a fact or circumstance that excuse performance because;  It is a fact or circumstance that excuse performance because; 1.) The subject or mens of performance have deteriorated or are no longer available. 2.) The method of delivery or performance has failed. 3.) A law now prevents performance 4.) Death or illness prevents performance ART. 1349. The object of every contract must be determinate as to its kind. The fact that the quantity is not determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine the same, without the need of a new contract between the parties. Lesion defined Lesion refers to a loss from another’s failure to perform a contract. It is the injury suffered by one who did not received the equivalent value of what bargained for. CHAPTER 2 SECTION 3: CAUSE OF CONTRACTS  art. 1350. In onerous contracts the cause is understood to be, for each contracting party, the prestation or promise of a thing or service by the other; in remuneratory ones, the service or benefit which is remunerated; and in contracts of pure beneficence, the mere liberality of the benefactor. CAUSE DEFINED AND DISTINGUISHED FROM MOTIVE. Cause is the essential reason for the contract, while motive is the particular reason of a contracting party which does not preclude the existence of a different consideration. Classification of Contracts According to Cause 1. Onerous the parties are reciprocally obligated to each other Example: Imagine a small business signs a five-year lease for office space at a fixed monthly rent. After two years, the business decided to downsize and no longer needed the entire office space. However, the lease agreement does not allow for early termination or subletting. As a result, the business must continue to pay rent for the remaining three years, even though they are not using the space.  2. Remuneratory or remunerative rewards the service that had been previously rendered by the party remunerated. Example: Service agreement between a company and a consultant. In this scenario, the company's motive for entering into the contract might be to obtain specialized expertise to improve its operations, while the consultant's motive could be to earn compensation for providing their professional services. Classification of Contracts According to Cause 3. Gratuitous the cause of which is the liberality of the benefactor or giver Example: Pro Bono Legal Services: Lawyers sometimes offer their services for free to individuals who cannot afford to pay. This is done out of a sense of duty or to support a cause, without expecting payment.  art. 1351. The particular motives of the parties in entering into a contract are different from the cause thereof. Motive is the moving power which impels one to act for a definite result, as distinguished from intent which is the purpose to use a particular means to effect such" result. Motive is some willful desire that leads one to act. It is also called ulterior intent. The particular motives of the parties in entering into a contract are different from the cause thereof. Example: The cause of the donation contract is the transfer of money to the charity. This is the essential reason for the contract's existence. The motive for the donation might vary. It could be because the donor genuinely wants to support the cause, or it could be for tax benefits, social recognition, or even to influence public opinion in their favor. Despite these varying motives, the cause of the contract remains the same: the donation of money. Illegality of the Cause: A contract involving illegal activities or objectives is void. The law will not enforce contracts with illegal causes. Illegality of the Cause Example: Suppose Alice agrees to pay Bob $10,000 to perform a specific illegal act, such as committing fraud. Here, the cause of the contract—the reason why Alice is paying Bob—is illegal. Because the contract's purpose involves committing a crime, it is considered void and unenforceable by law. This is because the law will not support or enforce agreements that are fundamentally illegal. In this scenario: Illegality of the Cause: The contract is void because its primary objective is illegal Illegality of One’s Motive: A contract is not affected by the parties' motives if the contract's content and purpose are legal. The personal reasons behind entering the contract don’t invalidate it. Mike sells his used car to Anna for $8,000. Mike’s real reason for selling is to buy an expensive gift for his spouse, intending to show off his generosity. In this scenario: Illegality of One’s Motive: The sale of the car is valid and enforceable, despite Mike’s personal reasons for selling the car. The contract is legal because the sale itself is lawful. CHAPTER 3 FORMS OF CONTRACTS ART. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be provided in a certain way, that requirement is absolute and indispensable. Form defined. The word: forms "refers to the manner in which a contract is made, whether by payroll evidence or writing, and not the class in which it may belong as general, limited or corporate. OBLIGATORY EFFECTS OF CONTRACTS. Contracts shall be obligatory in whatever form they may have been, entered into, provided all the essential requisites are present. In such cases, the right of the parties cannot be stated in the following articles exercised. ART. 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties my compel each other to observe the form, once the contract has been perfected. PARTIES MAY COMPEL EACH OTHER TO OBSERVE PRESCRIBED FORM. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. ART. 1358. The following must appear in a public document: 1.) Acts and contracts which have for their object the creation, transmission, modification or extinguishment or real rights over immovable property; sales of real property or of an interest therein are governed by article 1403, No. 2, and 1405; 2.) The cession, reputation or renunciation of hereditary rights or of those of the conjugal partnership or gain; ART. 1358. The following must appear in a public document: 3.) The power to administer property, or any other power which has for its object an act appearing or which should appear in the public document, or should prejudice a third person; 4.) The cession of actions or rights proceeding from an act appearing in a public document. PUBLIC DOCUMENT DEFINED A public document is any instrument authorized by a notary public or competent public official, which the solemnity required by law. A public document my either be. A public instrument or a legislative enactment, for legislative acts are also public document. EFFECT IF THE CONTRACTS IN ARTICLE 1358 NOT IN WRITING Contracts covered by Article 1358 are binding and enforceable by actions or suit despite the absence of writing. Article 1358 of the Civil Code provides the contracts involving more than 500 pesos must appear in writing, but nothing is said there in that such requirement is necessary for their validity or enforceability.  oblicon Thank you