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What is a contract
Legal definition of a contract under the Civil Code:
Article 1305.
A contract 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.
A Contract…
■ A voluntary, deliberate, and legally binding AGREEMENT
between two or more competent parties.
Each party to a contract acquires rights and duties relative to the rights and
duties of the other parties.
Read more: http://www.businessdictionary.com/definition/contract.htm
What is a contract?
Is an AGREEMENT between two or more parties, where at least
one party (or all parties) promises to do (or not to do) something.
Most contracts are binding even if they are not written, and most
written contracts are binding even if they are not notarized.
■ They state certain events that lead to the execution of the contract.
■ Most of the time, the Recitals are not essential to the contract (like the
Title). However, if a certain substantive provision of the contract is not
clear, the Recitals may be referred to in trying to determine what that
substantive provision means. Of course, you never want a contract to be
unclear, so such occasions should be rare.
■ One instance where it is helpful to include the Recitals is in cases of
AMENDMENT, SUPPLEMENT, EXTENSION, OR RENEWAL of previous
contracts. In those cases, we recommend particularly mentioning (and
even describing) the previous contract in the Recitals.
a) Purpose, Objective
b) Duties/ Responsibilities/ Obligations of Parties
c) Default, Penalties
d) Effectivity, Term, Pre-termination, Renewal
e) Assurances, Warranties
f) Contacts, Implementors
g) Dispute Resolution
h) Reservations
5. Date and Place of Execution
■ These information are useful to determine the periods referred to in
the contract, to identify which laws would apply, and so on.
6. Signatures
■ Check the individuals executing a contract on behalf of juridical entities have
the authority to sign the contract. For instance, for corporations, ask for a
Secretary’s Certificate. For government agencies, ask for a copy of the
manual of authorities. specifically, for the DSWD, this would be MC 2012-
009, entitled Manual of Delineation of Authority in the DSWD, as amended.
■ For the officers, make sure there is proof of their authority (e.g., a Board
Resolution or a Secretary’s Certificate).
■ Indicate the full name of each party, and if possible, its role in the contract
(e.g., for a sale, “Seller” and “Buyer”; for a donation, “Donor” and “Donee”,
etc.). For an organization, indicate the full name and position of its signatory.
-Art. 1159, CC