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.