FORM OF CONTRACTS

FORM- is a manner in which a contract is executed or manifested.

KINDS OF CONTRACTS ACCORDING TO FORM
1. Consensual Contracts - perfected by mere CONSENT.
2. Real Contracts- require DELIVERY to be valid as a real contract even as between the
parties, in addition to consent, subject matter, and cause.
3. Formal Contracts- perfected by conformity to essential FORMALITIES.
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 in some form in order that it may be valid or enforceable, or that a contract be
proved in a certain way, that requirement is absolute and indispensable. In such cases, the
rights of the parties stated in the following article cannot be exercised.
Generally Rule
Contracts are valid and binding, in whatever form provided all the essential requisites
for their validity are present.

Exceptions
1) When the law requires that a contract be in some form in order that it may be valid
For VALIDITY- This is true in formal or solemn contracts

2) When the law requires that a contract be in some form in order that it may be
enforceable
For ENFORCEABILITY- This is true for the agreements enumerated under
the Statute of Frauds, but of course this requirement may be waived by
acceptance of benets (partial) or by failure to object to the presentation of
oral (parol) evidence.

3) For the convenience of the parties
To bind third parties.
Examples of Formal Contracts
1) Donations of real property (these require a public instrument). (Art. 749, Civil Code).

2) Donations of personal property (these require a written contract or document if the
donation exceeds P500). (Art. 748, Civil Code).
3) Stipulation to pay interest on loans, interest for the USE of the money (said stipulation
must be in writing).

4) Transfer of large cattle (this requires the transfer of the certicate of registration). (Sec.
523, Rev. Adm. Code).
5) Sale of land thru an agent (here, the authority of the agent must be in writing; otherwise,
the sale is null and void). (Art. 1874, Civil Code).
6) Contracts of antichresis (here the principal loan, and the interest if any, must be specied
in writing; otherwise, the contract of antichresis is void). (Art. 1773, Civil Code).
Art. 1773. A contract of partnership is void, whenever immovable property is contributed
thereto, if an inventory of said property is not made, signed by the parties, and attached to the
public instrument.
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 may compel each other to observe
that form, once the contract has been perfected. This right may be exercised simultaneously with
the action upon the contract.