Article 1305. A contract is a meeting of minds 1.
Principle of mutuality of contract- nullifies
between two persons whereby one binds
himself, with respect to the other, to give
something or to render some service.
*Can’t be done without the existence of 2 persons or if
there is only one, he/she should represent 2
distinct interests
*Binding of one people to fulfill the prestation to give, to
do or not to do.
How to terminate such contract?
1. Termination by stipulation between parties
2. Termination, by stipulation, at option of one
party
3. Termination of one party with conformity of
the other
Contracts are agreements enforceable through legal
proceedings.
Characteristics of Contracts
1. Freedom or autonomy of contract- the
party may provide its own terms given that it
will not intervene or is not contrary to what
is in the law, morals, good customs, public
order, public policy.
2. Obligatoriness of contracts
3. Mutuality of contracts- binding force of a
contract which states that the validity of
contracts or compliance cannot be left to the
will of one of them.
4. Consensuality of contracts- a contract is
perfected by mere consent and from that
moment that the parties are bound not only
by the fulfillment of what has been
expressly stipulated but also to all the
consequences which may be in keeping with
good fait, usage, and law.
5. Relativity of contracts
Article 1306. The contracting parties may
establish such stipulations, clauses, terms, and
conditions as they may deem convenient,
provided they are not contrary to law, morals,
good customs, public order, or public policy.
Law- the stipulations, clauses, terms, and 1.
conditions should not be unacceptable to the contracts which lean unto the benefit of one of
provisions of the law. Law is always superior to the contracting parties.
private rights/contract. 2. Fulfillment or extinguishment of contract-
2. Police power- this talks about the intervention of voids or nullifies contracts which make the
the stipulations, clauses, terms, and conditions to fulfillment or extinguishment of contract reliant
morals, good customs, public order, or public unto one of the contracting parties.
policy which is not allowed given that it may 3. Renunciation or violation of contract- the
damage public property and interest and because consent of one of the contracting parties is
public welfare will always be superior to private needed given that the first party is renouncing or
rights. abandoning the contract. Renunciation is not
allowed otherwise.
Article 1307. Innominate contracts shall be 4. Proof of alleged defect in contract
regulated by the stipulations of the parties, by 5. Release of obligor from compliance- allowed
the provision of Title I and II of this book, by only when the fulfillment of the contract becomes
the rules governing the most analogous so difficult or impossibility to fulfill it comes.
nominate contracts, and by the customs of the
place. Article 1309. The determination of the
perfomrnace may be left to a third person,
Nominate Contracts- has specific name or designation in whose decision shall not be binding until it has
law. been made known to both contracting parties.
Innominate Contracts- no specific name or designation in
law.
Kinds of Innominate Contracts
1. Do ut des (I give that you may give) – now
known as barter
2. Do ut facias (I give that you may do)
3. Facio ut des (I do that you may give)
4. Facio ut facias (I do that you may do)
****keyword DO=Give____ FACIO=to do****
Rules governing innominate contracts
Art 1307
1. Stipulations of the parties
2. Provisions of title I (obligations) and II
(contracts)
3. Rules governing the most analogous
nominate contracts
4. The customs of the place
Article 1308. The contracts must bind both
contracting parties; its validity or compliance
cannot be left to the will of one of them.