CONTRACTS

-do ut des (I give that you may give);

ART. 1305. A contract is a meeting of minds -do ut facias (I give that you may do);
between two persons whereby one binds -facio ut des (I do that you may give); and
himself, with respect to the other, to give -facio ut facias (I do that you may do).
something or to render some service.
2. By subject matter
Kinds of Contracts a. Things
1. Entry forms b. Services
2. Consent/released form c. Transmissible rights
3. Gallery Agreement/Publishing licenses 3. By formation or perfection
4. Funding agreement a. Consensual - which is perfected
5. Studio agreements by mere consent
b. Real - by the delivery of the
Characteristics of Contracts thing subject matter of the
1. Legal purpose contract
2. Mutual Agreement c. Formal/solemn - which
3. Consideration requires compliance with
4. Competent parties certain formalities prescribed
5. Genuine assent by law such prescribed form
being thereby an essential
Contracts can be: element thereof
Bilateral 4. By cause
Unilateral a. Onerous
b. Gratuitous
Breach of Contract – hindi pagsunod sa c. Remunerative
contract 5. By vinculum
a. Unilateral
Why is contract used? b. Bilateral
1. To protect 6. By certain thing or fulfilment
2. To make parties responsible a. Commutative
3. To get what is expected b. Aleatory
7. By completion or performance
Stages of Making a Contract a. Executory
b. Executed
1. Conception or generation – 8. By defendants if one contract on the
preparatory stage, begin their initial other
negotiation a. Principal
2. Perfection or Birth – contract is born b. Accessory
3. Consummation or fulfilment – c. Preparatory
accomplishment of contract 9. By with an actual no. Of person
anticipating in the contract
Classifications of Contract a. Ordinary
1. By Name b. Auto
a. Nominate – given a particular 10. By dignity accorded by law
name a. Institutional
b. Innominate – doesn’t given a b. Ordinary
particular name
 11. By freedom of bargain Forms of Contract
a. Ordinary
b. Contracts of adhesion Art. 1356
12. By the evidence needed to prove their Art. 1357
existence Art. 1358
a. The contracts covered by the
state or frauds Reformation is that remedy by means of which
b. a written instrument is amended or rectified so
13. By the as to express or conform to the real agreement
a. Personal or intention of the parties when by reason of
b. Impersonal mistake, fraud, inequitable conduct, or
14. By manner the consent is given accident, the instrument fails to express such
a. Express agreement or
b. Implied intention.
c. Presume
d. Interpretation of a contract is the
Limitations of Contracts determination of the meaning of the terms or
1. Limitation by law words used by the parties in their contract.
2. Limitation by morals
3. Limitation by good customs
4. Limitation by public order
5. Limitation by public policy

Essential Requisites of Contracts

(1) Consent of the contracting parties;
(2) Object certain which is the subject matter of
the contract;
(3) Cause of the obligation which is established.

Consent is the conformity of wills and with

respect to contracts, it is the agreement of the
will of one contracting party with that of
another or others, upon the object and terms of
the contract.

Kinds of simulation
Absolute – simulado, when the contract does
not really exist and the parties do not intend to
be bound at all.
Relative – dissimulado (good intention) when
the contract entered into by the parties is
different from their true agreement

Object of Contract
1. Thing
2. Service
3. Price
RESCISSIBLE CONTRACTS
Classification of Contracts
1. Rescissible Contracts –those validly
entered into by the contracting parties,
but because of them resulting to
economic damage or lesion to one of
the parties or a third person, OR for
having entered into in fraud of
creditors, OR without knowledge and
approval of judicial authority having
custodia legis over the property
involved, OR for being specially
declared by law as rescissible may, for
equitable reasons be rescinded or set
aside by the court.
Art. 1381. The following contracts are
rescissible:
1) Those which are entered into by
guardians whenever the wards whom
they represent suffer lesion by more
than one-fourth of the value of the
things which are the object thereof;
2) Those agreed upon in representation of
absentees, if the latter suffer the lesion
stated in the preceding number;
3) Those undertaken in fraud of creditors
when the latter cannot in any other
manner collect the claims due them;
4) Those which refer to things under
litigation if they have been entered into
by defendant without the knowledge
and approval of the litigants or of
competent judicial authority;
5) All other contracts specially declared by
law to be subject to rescission.
2. Voidable or Annullable contracts –
those where the consent of one party is
defective either because of incapacity
to give consent to a contract, or where
the consent is vitiated by mistake,
violence, intimidation, undue influence
or fraud.
Art: 1390. The following contracts are voidable
or annullable, even though there may have
been no damage to the contracting parties:
1) Those where one of the parties is
incapable of giving consent to a
contract;
2) Those where the consent is vitiated by
mistake, violence, intimidation, undue
influence or fraud.
3. Unenforceable Contracts – those which
cannot be enforced in Court because of
the existence of any of the following
reasons:
1) They were entered into in
behalf of another without
authority or in excess of
authority
2) There is non-compliance with
the Statue of Frauds, and
3) Both contracting parties are
incapacitated.
4. Void or Inexistent Contracts – those
which produce no legal effect for they
do not exist in the eyes of the law.
Art. 1409. The following contracts are
inexistent and void from the beginning:
1) Those whose cause, object or
purpose is contrary to law,
morals, good customs, public
order or public policy;
2) Those which are absolutely
simulated or fictitious;
3) Those whose cause or object
did not exist at the time of the
transaction;
4) Those whose object is outside
the commerce of men;
5) Those which contemplate an
impossible service;
6) Those where the intention of
the parties relative to the
principal object of the contract
cannot be ascertained;
7) Those expressly prohibited or
declared void by law.