Contracts part 1

Summary

This lesson delves into the intricacies of contracts, defining them as agreements between parties that create obligations. It distinguishes contracts from broader agreements, emphasizing that not all are legally enforceable. The video outlines the essential elements of a valid contract, including mutual consent, a defined object, and a lawful cause. It also covers the binding nature of contracts on parties and their assignees, with exceptions for non-transferable rights. The lesson further explores third-party liability, the classification of contracts by perfection, and the essential requisites for consent and objects of contracts, providing a comprehensive foundation on contract law.

Takeaways

• 📜 A contract is defined as a meeting of the minds between two parties where one party binds themselves to give something or render a service.
• 🔗 Contracts are one source of obligations, which are the legal relationships that exist after a contract is entered into.
• 🚫 Not all agreements are enforceable in courts of justice, distinguishing a contract from a broader concept of an agreement.
• 🤝 Article 1306 guarantees freedom to contract, allowing parties to establish stipulations, terms, and conditions as long as they are not contrary to law or public policy.
• 🧾 Article 1308 states that a contract must bind both parties, and its validity or compliance cannot be left to the will of one of them.
• 👤 Article 1309 allows for the determination of performance to be left to a third person, whose decision is not binding until it is made known to both parties.
• 🔄 Contracts are generally transmissible to successors, but there are exceptions when rights and obligations are not transmissible, such as contracts involving personal qualifications.
• 💡 Article 1313 protects creditors in cases of contracts intended to defraud them, ensuring they are not left without recourse.
• 📝 Article 1314 and 1315 discuss the liability of third parties who induce a breach of contract, highlighting the broader implications of contractual agreements.
• 🔑 Article 1318 outlines the essential requisites of a contract, including consent of the parties, a certain object, and a cause of the obligation.
• 📑 The classification of contracts is based on their method of perfection, such as consensual, real, and solem contracts, each with specific requirements for validity.

Q & A

What is the definition of a contract according to Article 1305?

A contract is defined as a meeting of minds between two persons whereby one binds himself to the other to give something or render a service.

How does a contract differ from an obligation?

A contract is one of the sources of obligation. An obligation is the legal relationship that exists after a contract has been entered into.

What is the difference between a contract and an agreement?

A contract is enforceable through legal proceedings, while not all agreements are enforceable in courts. An agreement is broader because it may not meet all the legal requisites of a contract.

What does Article 1306 say about the freedom to contract?

Article 1306 states that contracting parties may establish stipulations, clauses, terms, and conditions as they deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.

According to Article 1308, what does it mean that a contract binds both parties?

A contract must bind both contracting parties, meaning its validity or compliance cannot be left to the will of one party alone.

What does Article 1309 state about determination of performance by a third person?

The performance of a contract can be determined by a third person, but their decision is not binding until it has been made known to both contracting parties.

What are the exceptions to the rule that contracts are only effective between the parties involved?

Exceptions occur when the rights and obligations from the contract are not transmissible, such as when they involve personal qualifications, stipulations, or specific provisions of law (e.g., partnerships).

What does Article 1314 state about the liability of third parties for breach of contract?

Under Article 1314, any third person who induces another to violate a contract is liable for damages to the other contracting party.

What are the essential requisites of a contract under Article 1318?

The essential requisites of a contract are: (1) consent of the contracting parties, (2) a certain object that is the subject matter of the contract, and (3) the cause of the obligation.

What happens if an offer is accepted by letter or telegram according to Article 1320?

If an offer is accepted by letter or telegram, the acceptance does not bind the offerer until it comes to their knowledge. The contract is presumed to have been entered into where the offer was made.

Outlines

00:00

📜 Overview of Contracts and Their Essentials

This paragraph provides a foundational understanding of contracts, defining them as agreements between two parties where one is bound to give something or render a service. It distinguishes between contracts and obligations, highlighting that contracts are a source of obligations but not all obligations arise from contracts. The paragraph also differentiates between contracts and agreements, noting that not all agreements are legally enforceable. It outlines the freedom to contract, stating that parties may establish terms as long as they are not contrary to law or public policy. The binding nature of contracts on both parties is emphasized, as is the general rule that only parties, assigns, and heirs can have rights and obligations under a contract, with exceptions for personal qualifications, stipulation, or legal provisions. The paragraph also discusses the liability of third parties for inducing contract breaches and the classification of contracts based on their perfection, including consensual, real, and solemn contracts. Essential requisites for contracts are also outlined, such as the need for consent, a certain object, and a cause of obligation.

05:01

📝 Characteristics and Object of Contracts

Paragraph 2 delves into the characteristics of consent in contracts, which must be intelligent, free, voluntary, conscious, and spontaneous. It discusses the incapacity of certain individuals, such as unemancipated minors and insane persons, to give consent to contracts. The validity of contracts entered into during lucid intervals and the voidability of those agreed upon under the influence of intoxication or hypnosis are also mentioned. The paragraph further explores the object of contracts, stating that all things not outside the commerce of men, including future things, and all rights not intransmissible may be the object of a contract. It outlines the requirements for things and services to be valid objects of a contract, such as being within the realm of commerce, not impossible, determinate, and capable of existence or performance. The causes of contracts, or the purposes that contracting parties have in view, are also classified into three types: onerous, where parties are reciprocally obligated; remuneratory, where the contract's purpose is to reward a previously rendered service; and gratuitous, which is not explicitly detailed in the paragraph.

Keywords

💡Contract

A contract is defined as a meeting of the minds between two persons, where one agrees to give something or render a service. It is a legal agreement and a source of obligation. In the video, a contract is described as binding both parties and enforceable by law, demonstrating its importance in legal relationships.

💡Obligation

Obligation refers to the legal or moral duty that arises once a contract has been made. It represents the relationship that exists between parties after entering into a contract. The video explains that contracts are one of the sources of obligation, where parties are bound to perform their agreed duties.

💡Agreement

An agreement is broader than a contract as it may not have all the requisites to be enforceable by law. Not all agreements are legally binding. In the video, this concept is explained to differentiate contracts (which are enforceable) from agreements (which may not always result in legal action).

💡Consent

Consent is the mutual agreement or concurrence of wills between parties in a contract. It involves the acceptance of terms by both sides. The video highlights consent as one of the essential requisites of a contract, stating that it must be free, voluntary, and conscious for the contract to be valid.

💡Stipulations

Stipulations refer to the specific terms and conditions established by the parties in a contract. According to the video, parties are free to set these stipulations as long as they do not conflict with the law, morals, or public policy. They are critical in defining the obligations of each party.

💡Cause

Cause, or 'causa', is the essential or proximate purpose that parties have in mind when entering a contract. It is one of the requisites for a valid contract. The video mentions that the cause must align with good faith, usage, and law for a contract to be enforceable.

💡Object

The object of a contract is the subject matter or the thing or service that is being exchanged. It must be legally permissible, determinable, and within the commerce of man. The video specifies that the object can include rights or services that are not contrary to the law or public order.

💡Real Contract

A real contract is one that is perfected by the delivery of the object of the contract. This differs from a consensual contract, which is perfected by mere consent. The video categorizes contracts based on how they are formed, and a real contract requires the actual transfer of the subject matter.

💡Third-Party Determination

This refers to the involvement of a third person in determining the performance of a contract. The decision of the third party is not binding until it is made known to both contracting parties. The video addresses this concept under Article 1309, where it discusses how a third party can affect contract execution.

💡Voidable Contract

A voidable contract is one where consent is given through mistake, violence, intimidation, undue influence, or fraud. Such contracts are not automatically void but can be annulled. The video explains that contracts made under these conditions are voidable and may not be enforced if proven invalid.

Highlights

A contract is defined as a meeting of minds between two persons where one binds himself to give something or render a service.

Contract versus obligation: A contract is one of the sources of obligation, while an obligation is the legal relationship that exists after a contract has been entered into.

Contracts versus agreements: Not all agreements are enforceable in court, whereas contracts are legally enforceable.

Article 1306: Parties can establish stipulations and conditions as long as they are not contrary to law, morals, good customs, public order, or public policy.

Article 1308: A contract binds both parties, and its validity or compliance cannot be left to the will of just one party.

Article 1313: Creditors are protected in cases of contracts intended to defraud them.

Article 1315: Contracts are perfected by mere consent, and from that moment, parties are bound to fulfill what has been expressly stipulated.

Classification of contracts: Consensual contracts are perfected by mere consent, real contracts by the delivery of the subject matter, and solemn contracts require compliance with formalities prescribed by law.

Article 1318: There is no contract unless the following requisites are met: consent, a certain object, and a cause.

Consent is the conformity of wills between the contracting parties on the object and terms of the contract.

Offer and acceptance: For a contract to be valid, the offer must be certain and the acceptance absolute. Qualified acceptance constitutes a counteroffer.

Article 1327: Certain individuals, such as unemancipated minors or insane persons, cannot give valid consent to a contract.

Article 1330: A contract is voidable if consent is given through mistake, violence, intimidation, undue influence, or fraud.

Article 1347: All things not outside the commerce of men, including future things, may be the object of a contract.

Impossible services or objects cannot be the subject of a contract.

Transcripts

Good day our lesson for today is all

about

contracts article

1305 define contract as a meeting of

mind Between Two persons whereby one

bind himself with respect to the other

to give something or to Render some

service contract versus obligation

contract is one of the sources of

obligation the hand obligation is the

legal or relationship itself that exist

after a contract has been entered

into contract versus agreement contract

or agreement enforceable through legal

proceedings and not all agreements are

enforce in action in the courts of

justice an agreement is broader than a

contract because the former may not have

all the requisites of a

contract freedom to contract guarantee

article 1306 the contracting parties may

establish such stipulations clw terms

and conditions as they may deem

convenient provided They are not

contrary to law morals good customs

public order or public

policy contract binds both contracting

parties article 1308 The Contract must

bind both contracting parties its

validity or compliance cannot be left to

the will of one of them

determination of performance by a third

person article 1309 the determination of

the performance may be left to a third

person Whose decision shall not be

binding until it has been made known To

both contracting parties persons

affected by a contract general rule a

party's rights and obligations derived

from a contract are transmissible to the

successors contracts take effect only

between the parties their assigns and

ears this means that only the parties

assigns and ears can have the rights and

obligations under the

contract exceptions to the rule the

cases when contracts are effective only

between the parties are when the rights

and obligations arising from The

Contract are not

transmissible number one by their nature

contract involving personal

qualifications number two by stipulation

number three by provisions of law as in

partnership right of creditor to impe

contracts intended to def them article

1313 creditors are protected in cases of

contracts intended to defraud

them liability of third person

responsible for breach of contract

article 1314 any third person who

induces another to violate his contract

shall be liable for damages to the other

contracting

part article 1315 contracts Are

perfected by mir consent and From the

moment the parties are bound not only to

the fulfillment of what has been

expressly stipulated but also to all the

consequences which according to their

nature may be keeping with good Faith

usage and Law classification of

contracts according to perfection number

one consensual contract or that which is

perfected by m consent number two real

contract or that which is perfected by

the delivery of the thing subject matter

of the contract number three solem

contract or which requires compliance

with certain formalities prescribed by

law essential requisites of contracts

article 1318 there is no contract unless

the following requirements conure number

one consent of the contracting parties

number two object certain which is the

subject matter of the contract number

three cause of the obligation which is

established

consent consent is the conformity or

concurrence 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 article 3019 consent is

manifested by the meeting of the offer

and the acceptance upon the team and the

cause which are to constitute the

contract the offer must be certain and

the acceptance absolute the qualified

acceptance constitute a counter offer

acceptance made by Letter or telegram

does not bind the offerer except from

the time It came to his sts the contract

in such a case is presumed to have been

entered into in the place where the

offer was

made form of acceptance of offer article

1320 unacceptance may be Expressed or

imp matters that may be fixed by the

offer article 3021 the person making the

offer may fix the time place and the

manner of acceptance all of which must

be complied

with article 1323 an offer becomes

ineffective Upon The Death civil

interdiction insanity or insolvency of

either party before acceptance is

conveyed

under article 1327 the following cannot

give consent to a contract number one

unemancipated

minors number two insane or demented

persons and depes who do not know how to

write article 1328 contracts entered

into during a lucid interval are valid

contracts agreed to in a state of

drunkness or during a hypnotic spell are

voidable article 1330 a contract Where

consent is given through mistake

violence intimidation and DU influence

or fraud is

voidable characteristics of consent

number one it is intelligent number two

it is free and voluntary number three it

is conscious and

spontaneous The following are the object

of

contracts article 1347 all things which

are not outside the Commerce of men

including future things may be the

object of a contract all rights which

are not intransmissible may also Be The

Object of a contract no contract may be

entered into upon future inheritance

except in cases expressly authorized by

law all services which are not contrary

to law morals good customs public order

or public policy may Likewise Be The

Object of a

contract article 1348 impossible or

services cannot be the object of a

contract requisites of things as object

of contract number one the thing must be

within the Commerce of men that is it

can legally be the subject of commercial

transaction number two It must not be

impossible legally or physically number

three It must be in existence or capable

of coming into existence number four It

must be determinate or determinable

without the needs of of a new contract

between the

parties requisites of services as object

of contract number one the service must

be within the Commerce of men number two

It must not be impossible physically or

legally number three It must be

determinate or capable of being made

determinate causes of

contracts cause or causa is the

essential or approximate purpose which

the contracting parties have in view at

the time of entering Into The

Contract classification of contract

according to C number one unus the

parties are reciprocally obligated to e

other number two remuneratory or

remunerative the purpose of the contract

is to reward the service that had been

previously rendered by the party

remunerated and number three grat