Contracts but Annotations

Question 1

What are the 2 types of contracts according to risks?

Answer 1

Commutative - When the undertaking of one party is considered the equivalent of that of the other (Ex: Sale or Lease)

Aleatory - When it depends on an uncertain event or contingency both as to benefit or loss (Ex: Insurance)

Question 2

What are the 2 types of contracts according to liability?

Answer 2

Unilateral - You should already know this

Bilateral - This too

The key important point is that this classification has the same types along with the contracts according to persons obliged

Question 3

What are the 3 types of contracts according to dependence to another contract?

Answer 3

1. Preparatory - When it is entered into as a means to an end
2. Accessory - When it is dependent on another contract it secures or guarantees for its existence or validity (Ex: Mortgage or Loan)
3. Principal - When it does not depend on another contract for its existence or validity but is indispensable for the existence of an accessory contract

Question 4

What are the 2 types of contracts according to status?

Answer 4

Executory - When it has not yet been completely performed by both parties

Executed - When it has been fully and satisfactorily carried out by both parties

Question 5

What are the 2 types of contracts according to dependance of part of contracts to other parts?

Answer 5

Indivisible - When each part of the contract is dependent on the other parts for satisfactory performance

Divisible - When one part of the contract may be satisfactorily performed independently of the other parts

Question 6

What is a valid contract?

Answer 6

It is those that meet all legal requisites for the type of agreement involved (Art 1318) and the limitations of contractual stipulation (Art 1306). So they are therefore, legally binding and enforceable.

Question 7

What are the limitations of the freedom to contract

Answer 7

The freedom to contract is a constitutional and statutory right, but it cannot be invoked against the right of the state to exercise police power. Therefore the 2 limitations are

1. Law - Contracts entered must be in accordance with an applicable statute as a fundamental requirement
2. Police Power - When there is no law in existence or when it is silent, the will of the parties prevail unless their contract contravenes the limitation of morals, good customs, public order/policy.

Question 8

What are the 2 types of contracts according to its name or designation?

Answer 8

Nominate - That which has a specific name or designation in law

Innominate - That which has no specific name or designation in law

Question 9

What are the kinds of innominate contracts?

Answer 9

1. do ut des (I give that you may give)
2. do ut facias (I give that you may do)
3. facto ut des (I do that you may give)
4. facto ut facias (I do that you may do)
5. is no longer considered nowadays though since its been named as barter or exchange

Question 10

Contracts only take effect between?

Answer 10

They take effect between the parties, their assignatories/legal representatives, and heirs

Question 11

What are the exceptions where contracts are only effective only between the parties and their rights and obligations are not transmissible?

Answer 11

1. By their nature
2. By stipulation
3. By provision of the law

Question 12

What is stipulation pour autrui?

Answer 12

This is a stipulation in a contract clearly and deliberately conferring a favor upon a third person who has a right to demand its fulfillment provided he communicates to the obligor before its revocation by the obligee or the original parties

Question 13

What are the 5 characteristics of a contract?

Answer 13

1. Consensually
3. 4.