I.

H
II. Contract
A. Definition
1. Art. 1305
2. v. Obligation
3. v. Agreement
B. Classifications [11]
C. *Valid Contracts (1306)
1. Basic Principle: Freedom to Contract
2. Limitations
a. Law
b. Police Power
3. Laws
4. Morals
5. Good Customs
6. Public Order
7. Public Policy
a. Void Contracts [2]
D. Innominate Contracts (1307)
1. Do ut des (Barter/ Exchange)
2. Reasons:
a. The impossibility of anticipating all forms of agreement
b. The progress of man's sociological and ecological relationships
3. Rules
a. Agreement of the parties
b. Provisions of the Civil Code on ObliCon
c. Rules governing the most analogous Contratcs
d. Customs of the place
E. *Mutuality of Contracts (1308)
1. Basic Principle: Both parties are Mutually Bound
a. Meeting of minds or mutual consent
2. Based on the essential equality of the parties
F. *Principle of Relativity (1311)
1. Takes effect between
a. The parties
b. Their heirs
c. Their assigns
2. Reason: "The act, declaration, or omission of a person cannot affect another
without the latter's authorization or ratification.
3. Exceptions: When rights are not transmissible
a. By their nature
b. By stipulation
c. By provision of law
4. Exceptions: Cases when third persons may be affected by a contract that he is
given the right to bring an action for the enforcement or when there's a breach.
a. Stipulation pour autrui
b. In contracts creating real rights (1312)
 c. ... Entered into to defraud creditors (1313)
d. ... Which have been violated at the inducement of a third person (1314)
5. Stipulation pour autrui
a.