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Learning Laws of the Philippines

In: Social Issues

Submitted By pawla
Words 5141
Pages 21
Learning Objectives:

After studying this lesson, you should: 1. Know the definition of contract 2. Learn the different classifications of contracts; 3. Know the elements of contracts; and 4. That contracts take effect only between parties and its exceptions. The classifications of contracts summarizes those types of contracts that may be freely agreed upon as long as they are not contrary to law, morals, good customs, public order or public policy.

ART. 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 service. (1254a)

Contracts, Defined

The above article defines the term Contract. In a contract, one or more persons bind themselves with respect to another or reciprocally, to the fulfilment of a presentation to give, to do or not to do.

Elements of Contract:

1. Essential elements – those elements without which there can be no valid contract. These elements are consent, object or subject matter and cause or consideration

2. Natural elements – those elements which are found in a contract by its nature and presumed by law to exist, such as Warranty of hidden defects or eviction in contract of sale.

3. Accidental elements - those which exist by virtue of an agreement for the purpose of expanding, limiting, or modifying a contract. Such accidental elements are condition, clauses, terms, modes of payment, or penalties.

Stages of A Contract:

1. Preparatory or conception – process of formation such as bargaining, negotiation to arrive at a define contract.

2. Perfection or birth – there is now a meeting of minds to arrive at a definite agreement as to the subject matter, cause or consideration, terms and conditions of contract.

3. Consumption or death – which is the fulfilment or performance of the terms and conditions agreed…...

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