OBLICON_GENERAL PROVISIONS OF CONTRACTS PART 1

Summary

Attorneys Ben and April M delve into the general provisions of contracts in this informative video. They explain the concept of a contract as a 'meeting of minds' where parties agree to exchange something or provide a service, emphasizing the binding effect of contracts under the law. The video outlines essential elements like consent, object, and consideration, and discusses natural and accidental elements in contracts. It also covers the limitations on contractual stipulations, such as adherence to law and public policy. The attorneys highlight the characteristics of contracts, including mutuality, obligatory force, and relativity, and touch upon classifications of contracts based on subject matter, name, and perfection. The video is an educational resource for students and anyone interested in understanding the fundamentals of contracts in law.

Takeaways

• 📜 A contract is defined as a meeting of minds between two parties where one party binds themselves to give something or render a service to the other.
• 🏛 The term 'contractus' originates from Latin and refers to a juridical convention where parties bind themselves to fulfill obligations, to give, do, or not do something.
• 🔗 The binding effect of a contract means that the obligations arising from it have the force of law between the contracting parties.
• ⚖️ Mutuality in contracts implies that both parties are bound by the contract, ensuring essential equality and fairness.
• 📚 Contracts are a source of obligations, and obligations are the legal ties that exist after a contract is executed.
• 🚫 Not all agreements are contracts; an agreement is broader as it may not have all the elements that a contract requires.
• 🔑 Essential elements of a contract include consent, object or cause, and consideration (referred to as C.O.C.).
• 📝 Natural elements are those found in certain contracts and presumed to exist unless stipulated otherwise, such as the warranty against defects in a sale.
• 📑 Accidental elements are stipulations that may be agreed upon by the parties, subject to limitations set by law and public policy.
• 📐 The characteristics of a contract include obligatory force, mutuality, and relativity, which define how contracts bind parties and their enforceability.
• 🔍 Classifications of contracts can be based on subject matter, name, or perfection, each with specific legal implications and requirements.

Q & A

What is the definition of a contract according to 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.

What does the term 'contractus' originate from and what does it mean?

The term 'contractus' originates from the Latin word and means a juridical convention manifested in legal form by virtue of which one or more persons bind themselves to the fulfillment of a prestation to give, to do, or not to do.

What is the binding effect of a contract?

The binding effect is that the obligations arising from a contract have the force of law as between the contracting parties.

What is the difference between a contract and an agreement?

An agreement is broader than a contract since the former may not have all the elements that the latter has. All contracts are considered agreements, but not all agreements are considered contracts.

What are the essential elements of a contract?

The essential elements of a contract are consent, object or cause, and consideration.

What are natural elements in a contract?

Natural elements are those found in certain contracts and presumed to exist unless the contrary has been stipulated, such as the warranty against heat defects in a contract of sale.

What is the significance of the principle of mutuality in contracts?

Mutuality ensures that the validity and performance of contracts cannot be left to the sole will of only one of the contracting parties. Both parties are bound to comply with its terms and conditions based on their essential equality.

What is the principle of relativity in contracts?

The principle of relativity states that only the contracting parties and their successors are bound by the contract, meaning the effect of a contract extends only between the parties, their assigns, and their heirs.

What are the limitations on contractual stipulations according to Article 1306?

Contracts should be in accordance with the law, not contrary to it, not immoral, not contrary to good customs, and not contrary to public order or public policy.

What is the difference between consensual and real contracts?

Consensual contracts are perfected by mere consent, binding the parties to fulfill what has been stipulated and all consequences in keeping with good faith, usage, and law. Real contracts, on the other hand, require a specific formality or act to be perfected, such as the delivery of the subject matter.

What is the significance of the obligation to give support in contracts?

The obligation to give support is an example of a non-transmissible contract, as it requires special personal qualifications of the obligor and is not transmitted to the heirs but to the estate.

How does the principle of unjust enrichment apply to contracts?

The principle of unjust enrichment applies to contracts like the nominee contract of 'I do that you may give', where one cannot unjustly enrich themselves at another's expense, such as a lawyer who renders services to a friend still having the right to collect fees.