Ramon Magsaysay Memorial Colleges, General Santos City LAW ON OBLIGATION & CONTRACTS

IDENTIFICATION

B. CONTRACTS
1. It is the essential or more proximate purpose or reason which the contracting parties have in view at the
time of entering into the contract.
2. Contracts must bind both and not one of the contracting parties; their validity or compliance cannot be left
to the will of one of them.
3. It is when a person takes improper advantage of his power over the will of another, depriving the latter of
a reasonable freedom of choice.
4. The cause, with respect to one party, is the prestation or the promise of a thing or service by the other
party.
5. A contract that can stand by himself.
6. A contract whereby only one party is obligated to do or give something.
7. It exists when one of the contracting parties is compelled by a reasonable and well-grounded fear of an
imminent and grave evil upon his person or property, or upon the person or property of his spouse,
descendants or ascendants, to give his consent.
8. They are not perfected until the delivery of the object of the obligation.
9. This takes place when the parties have fullled or performed their respective obligations or undertakings
under the contract and the contract may be said to have been fully accomplished or executed, resulting in
the extinguishment thereof.
10. There are the particular stipulations, clauses, terms, or conditions established by the parties in their
contract, for the purpose of clarifying, restricting, or modifying its legal effects, like conditions, period,
interest, penalty, etc., and, therefore, they exist only when they are expressly provided by the parties.
11. It is designed to prevent the commission of fraud by requiring certain contracts to be in writing.
12. It means that one under no disability voluntarily adopts and gives sanction to some defective or
unauthorized contract, act, or proceeding which, without his subsequent sanction or consent, would not
be binding or him.
13. These are those validly agreed upon because all the essential elements exist and, therefore, legally
effective, but in the cases established by law, the remedy of rescission is granted in the interest of equity.
14. The principle that the contract has the force of law between the contracting parties and must be complied
with in good faith.
15. It is when, through insidious words or machinations of one of the contracting parties, the other is induced
to enter into a contract which, without them, he would not have agreed to.
16. It is a temporary period of sanity.
17. Contracts take effect only between the parties, their assigns and heirs, except in cases where the rights
and obligations arising from the contract are not transmissible by their nature, or by stipulation, or by
provision of law.
18. It is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to
constitute the contract.
19. A contract whose fulfillment depends upon chance.
20. Contracts which has no specic name or designation in law.
21. Contract which is perfected by mere consent.
22. The term used when both parties to a contract are guilty.
23. This takes place when the parties have come to a denite agreement or meeting of the minds regarding
the terms, that is, the subject matter and cause of the (consensual) contract.
24. These are those without which no contract can validly exist.
25. These are those which possess all the essential requisites of a valid contract but one of the parties is legally
incapable of giving consent, or consent is vitiated by mistake, violence, intimidation, undue inuence, or
fraud.
26. It is one the cause of which is the service or benet which is remunerated.
27. It is the purely personal or private reason which a party has in entering into a contract.
28. The parties do not intend to be bound at all.

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Ramon Magsaysay Memorial Colleges, General Santos City LAW ON OBLIGATION & CONTRACTS

29. It must refer to the substance of the thing which is the object of the contract or the principal conditions
which moved a party into the contract, in order to vitiate consent.
30. An accessory penalty which deprives a person during the term of his sentence of the rights of parental
authority, of guardianship, of marital authority, of the right to manage his property and of the right to
dispose of such property by any act or conveyance inter vivos.
31. The 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, and public policy.
32. A contract where the parties give equivalent values, hence, there is real fulfillment.
33. A contract which has a specic name or designation in law.
34. It is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give
something or to render some service.
35. Contract which is required by law for its efcacy to be in a certain specied form.
36. This includes all the steps taken by the prospective parties from the time they manifest interest in entering
into a contract, leading to the perfection of the contract.
37. Those that are presumed to exist in certain contracts unless the contrary is expressly stipulated by the
parties.
38. These are those which, because of certain defects, generally produce no effect at all.
39. It is a remedy as well as a sanction provided by law, for reason of public interest, for the declaration of the
inefcacy of a contract based on a defect or vice in the consent of one of the contracting parties in order
to restore them to their original position in which they were before the contract was executed..
40. It is an equitable remedy granted by law to the contracting parties and sometimes even to third persons in
order to secure reparation of damages caused them by a valid contract, by means of the restoration of
things to their condition prior to the celebration of said contract.
41. The remedy in equity by means of which a written instrument is made to conform to the real intention of
the parties when some error has been committed.
42. It is when the contract entered into by the parties is different from their true agreement or the parties state
a false cause in the contract to conceal their real agreement.
43. It is any damage caused by the fact that the price is unjust or inadequate.
44. It exists when serious or irresistible force is employed to obtain consent.
45. It is a preparatory contract giving a person for a consideration a certain period and under speci ed
conditions within which to accept the offer of the offerer.
46. It is a stipulation in a contract clearly and deliberately conferring a favor upon a third person who has a
right to demand its fulllment, provided, he communicates his acceptance to the obligor before its
revocation by the obligee or the original parties.
47. Contracts are perfected, as a general rule, by mere consent, and from that moment the parties are bound
not only by the fulllment of what has been expressly stipulated but also to all the consequences which,
according to their nature, may be in keeping with good faith, usage and law.
48. Both parties are required to perform reciprocal prestations.
49. The cause thereof is the liberality of the benefactor.
50. Its existence depends upon another contract.

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