Meeting of minds between two persons whereby one binds himself, with respect to the other to give something or to render some service.
Contract
Requisites of Contracts (COC)
- Consent of the contracting parties;
- Object certain which is the subject matter of the contract; and
- Consideration
General Rule of Contract
Form is not required for a contract to be valid. It can be done orally. It is enough that there be consent, subject matter and consideration.
Exception to the General Rule
- A specific form is required for the following contracts to be valid:
- Formal Contracts
- Real Contracts
Contracts for which a special form is necessary for its perfection.
Formal Contracts
Contracts which are perfected not merely by consent but by delivery, actual or constructive, of the object of the obligation.
Real Contracts
In order the the donation of a immovable may be valid, it must be made in?
Public document
A orally donated his 1-hectare land to B. B contracted the services of C, a geodetic engineer, to conduct a survey on such land which was completed within one month. After six months, A died. A’s heirs claims to recover the land from B. B refused to vacate the lot and reasoned that the land was validly donated to him by A. Is B correct?
NO. There was no valid donation because such donation is not notarized.
Kinds of Defective Contracts
VURV
1. Void Contracts
2. Unenforceable Contracts
3. Rescissible Contracts
4. Voidable Contracts
Not contracts as they have no legal effect at all.
Void Contracts
Those that cannot be enforced in court by reason of certain defects provided by law until and useless they are ratified according to law.
Unenforceable Contracts
Valid until rescinded. All essential requisites of a contract exist but there is injury or damage to one of the parties or to third persons.
Rescissible Contracts
Void Contracts Examples
- Those whose cause, object or purpose is contrary to law, morals good customs, public order or public policy;
- Those which are absolutely simulated or fictitious;
- Those whose object is outside the commerce of men;
- Those which contemplate an impossible service;
Unenforceable Contracts Example
- Those entered into in the name of another person by one who has been give no authority or legal representation, or who has acted beyond his powers;
- Formal contracts not made in writing;
- Both parties are incapable of giving consent.
Annullable contracts
Voidable Contracts
Voidable Contracts Example
- Those where one of the parties is incapable of giving consent to a contract.
- Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
