FORM OF CONTRACTS

(ARTICLE 1356-1358)
What is a form of contract?
💡 It is the manner in which a contract is executed or
manifested (oral, written, or partly oral and written).
 Written Contract
Generally, when all its terms are written.

Classifications:
• Informal or Common - may be oral or written, provided all the
essential requisites based on Article 1356 for the validity are
present.
• Formal or Solemn - required by law for its efficacy to be in a
CERTAIN SPECIFIED form
RULES REGARDING FORM OF CONTRACTS
General Rule:
Contracts are binding and
therefore, enforceable
reciprocally by contracting
parties, WHATEVER FORM OF
CONTRACT in which they
entered into, provided
CONSENT, OBJECT and CAUSE
are present. (Art. 1318)
 EXCEPTIONS TO GENERAL RULE

Form, however, may be required when:

• the law requires for the contract to be VALID.
• the law requires for it to be enforceable and proved in
certain way.
• the law requires for the convenience of parties or for third
persons.
 FORM OF VALIDITY OF CONTRACT

a. Donation of real property - must be in public instrument.

b. Donation of personal property with a value exceeding
₱5,000 - acceptance and donation must be in writing.
c. Stipulation to pay interest & sale through agent - must be
in writing; otherwise, void.
d. Contract of partnership - if immovable, must be in a public
instrument.
 FOR CONVENIENCE OF THE PARTY

💡 Non-compliance with the right form would not

adversely affect the validity and enforceability,
however, it is essential that before a party may be
compelled to execute the required form, the
contract must be proven valid and enforceable.
CONTRACTS IN A PUBLIC DOCUMENT
💡 PUBLIC DOCUMENT - acknowledged before a notary public or any
official authorized to administer oath, by the person who executed the
same.

Examples:
• Creation of real rights over immovable property
• Cession or renunciation of hereditary rights (holographic
and notarial) or conjugal partnership gains
• Power to administer property
• Cession of actions or rights