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.

Outlines

00:00

📜 Introduction to Contracts and Obligations

Attorneys Ben and April M introduce the topic of contracts, emphasizing the concept of a 'meeting of minds' where one party binds themselves to another to provide something or render a service. They delve into the definition of a contract, its Latin and French roots, and its manifestation as a juridical convention. The binding effect of contracts and the principle of mutuality are discussed, highlighting that obligations arising from contracts have the force of law between the parties involved. The video also distinguishes between contracts and mere agreements, explaining that while all contracts are agreements, not all agreements are contracts due to the presence of essential elements in contracts.

05:01

🔍 Essential Elements and Characteristics of Contracts

The video script outlines the essential elements of a contract, known as 'COA' (Consent, Object, and Cause), and natural elements that are presumed to exist unless stipulated otherwise. It also touches on the limitations of contractual stipulations, as per Article 1306 of the Civil Code, and the constitutional right to enter into contracts, with a caution that this freedom applies only to legally valid contracts. The characteristics of contracts, including obligatory force, mutuality, and relativity, are explained, emphasizing that contracts are binding as law between parties and that both parties are equally bound to fulfill the terms and conditions.

10:02

🔗 The Relativity and Enforceability of Contracts

This section discusses the principle of relativity in contracts, stating that contracts bind only the parties involved, their assigns, and their successors, with exceptions for certain personal contracts that are not transmissible. It also addresses the enforceability of contracts, explaining that a contract entered in another's name without consent is unenforceable unless ratified. The video highlights the importance of consent and authority in binding a person to a contract, and the implications of entering contracts in the name of another without proper authorization.

15:04

📚 Classification of Contracts Based on Various Criteria

The script provides a classification of contracts based on subject matter, such as contracts involving things, services, or rights/credits. It also classifies contracts by their specific name or designation in the law, such as partnership, sale, and agency. Additionally, it mentions contracts that have no specific name or designation, like when something is given without consideration. The video also touches on the concept of 'quasi-contracts' or 'nominee contracts,' which are based on the principle of unjust enrichment and can apply to various professions, not just lawyers.

20:05

🏢 Perfection of Contracts and Legal Formalities

The video script explains the concept of contract perfection, distinguishing between consensual contracts, which are perfected by mere consent, and real contracts, which require the delivery of the subject matter. It provides examples of real contracts, such as deposit and pledge, and emphasizes that these contracts are not perfected until the object of the obligation is delivered. The necessity of complying with certain legal formalities for the validity and enforceability of contracts, particularly for the conveyance of real property, is also highlighted.

25:05

📝 Solemn Contracts and Legal Formalities

The final paragraph focuses on solemn contracts, which require compliance with specific legal formalities, such as the use of a public instrument for the conveyance of real property. The script underscores the importance of these formalities as essential elements for the validity and enforceability of such contracts.

Keywords

💡Contract

A contract is defined in the video as a meeting of minds between two persons, where one party binds themselves to give something or render some service to the other. It is a fundamental concept in the video, serving as the basis for the discussion on obligations and legal agreements. The script mentions that a contract has a binding effect, meaning it has the force of law between the parties involved, which is a key aspect of contract law.

💡Offer and Acceptance

Offer and acceptance are key components in the formation of a contract. The video explains that a contract is formed when an offer by one party is accepted by the other, indicating mutual consent which is essential for a valid contract. This concept is integral to understanding how contracts are initiated and agreed upon.

💡Mutuality

Mutuality in contracts refers to the principle that both parties are bound by the terms of the contract. The script emphasizes that contracts have mutuality, meaning that the validity and performance of contracts cannot be determined by one party alone. This principle ensures that both parties are equally obligated to fulfill the terms of the agreement.

💡Legal Tie

The term 'legal tie' is used in the video to describe the relationship that exists after a contract has been executed. It signifies the obligations that arise from a contract and have the force of law between the contracting parties. This concept is crucial for understanding the binding nature of contracts and the obligations they create.

💡Essential Elements

The video outlines essential elements as the necessary components without which a contract cannot validly exist. These include consent, object or cause, and consideration. The script uses the acronym 'COC' to help remember these elements, which are vital for the formation of a legally enforceable contract.

💡Natural Elements

Natural elements are those found in certain contracts and are presumed to exist unless the contrary has been stipulated. The script provides the example of a warranty against heat defects in a contract of sale, which is an implied natural element of the contract. These elements are important for understanding the default terms that may apply to specific types of contracts.

💡Accidental Elements

Accidental elements, as mentioned in the video, are stipulations that may be agreed upon by the contracting parties in a contract. They are not essential for the contract's existence but can add specific terms or conditions. The video notes that these elements must not be contrary to law, morals, customs, or public policy.

💡Binding Effect

The binding effect of a contract, as discussed in the video, refers to the legal force that obligations arising from a contract have between the contracting parties. This effect is what makes contracts enforceable and ensures that the parties are obligated to comply with the terms of the agreement.

💡Relativity of Contracts

The relativity of contracts is a principle that only the contracting parties and their successors are bound by the contract. The video explains that, as a general rule, the effects of a contract are limited to the parties involved, their assigns, and their heirs, unless the contract specifies otherwise.

💡Enforceability

Enforceability in the context of the video refers to the ability to enforce contracts through legal proceedings. The script distinguishes between contracts, which are enforceable, and mere moral or social agreements, which cannot be enforced by action in the courts of law. This concept is important for understanding the legal consequences and remedies available when a contract is breached.

💡Public Policy

Public policy is mentioned in the video as a guiding principle that contracts should not be contrary to. It is a set of principles that are fundamental to the governance of a nation and are used to evaluate the legality and enforceability of contracts. The script emphasizes that contracts must conform to public policy and good customs to be valid.

Highlights

Definition of a contract as a meeting of minds between two persons.

Origin of the word 'contractus' from Latin and French words.

Binding effect of contracts and the force of law they possess among contracting parties.

Mutuality in contracts, ensuring both parties are bound and not just one.

Contracts as a source of obligations and the legal tie that exists post-contract execution.

Difference between an agreement and a contract in terms of enforceability.

Essential elements of a contract: consent, object or cause, and consideration.

Natural elements in contracts that are presumed to exist unless stipulated otherwise.

Limitations on contractual stipulations according to Article 1306 of the Civil Code.

The right to enter into a contract as guaranteed by the 1987 Philippine Constitution.

Characteristics of a contract: obligatory force, mutuality, and relativity.

Exceptions to the rule that obligation of contracts should not be impaired.

Relativity of contracts and their binding nature to only the contracting parties and their successors.

Classification of contracts according to subject matter, name, and perfection.

Explanation of consensual contracts that are perfected by mere consent.

Real contracts like deposit, pledge, and commodatum that require delivery for perfection.

Solemn contracts that require compliance with certain legal formalities for validity.

Transcripts

[Music]

hi

everyone welcome to my channel always

remember ignorance of the law excuses no

one

this is

good engineering to all the students and

to all of

you who are tuning in in this video

lecture so we're just done

discussing the first part of obligations

and contracts that is obligation

and now we are here to talk about

contracts again i am attorney ben

and i'm attorney april m and we are here

to discuss to you the general provisions

of

contracts starting with article 1305

attorneys

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

so this is actually the definition which

emphasizes

the contracting part is meeting of mines

which should take place when the offer

by one party is accepted by the others

but

[Music]

word contractus and from the french word

contra and it is what it is a juridical

convention manifested

in legal form by virtue of which one or

more persons or parties bind themselves

in favor

of another or others or reciprocally to

the fulfillment

of a prestigation to give to do or not

to do

so accordingly

[Music]

and since we've said that there is

already a meeting of mine yes

mines between the the parties therefore

the contract

has its binding effect right and then

binding effect

so in binding effect is that the

obligations

that arise from a contract have the

force of

law as between the contracting parties

so

article 1159 of the civil code

and since it has the force of loss

between the parties

there must be mutuality between the

parties based on their

essential equality to which is repugnant

to have one party bound by the contra

leaving the other free they're from so

it's a dino combining

some party to the contract yes

to the other right um it's unfair

and it doesn't make sense

of what they've agreed upon right so

based on law and contract is one of the

sources

of the obligations on the other hand the

obligation per se

is the legal tie or relation that exists

after a contract has been executed

so in addition to this as a form of

agreement contracts are

enforceable through legal proceedings

while

mere moral or social agreements are

those which cannot be enforced by action

in the course of justice so you know i

know

you know unique as a source of

obligation yes so you can enforce this

in the courts of law yes so an agreement

is broader than a contract since the

former may not have all the elements

that the latter has

[Music]

is

hence if there is no obligation to begin

with can there be a contract

no a contract will not exist if there is

no obligation to begin with

on the other hand obligations may exist

even without a contract being entered

into daniel

so take note of that and in the same 10

or

all contracts are considered agreements

but but not all agreements are

considered contracts

now let's proceed attorney orders uh one

of the more important

uh provisions in under contract which is

the elements of the contract

so we have essential elements and we

also have

natural and accidental elements

[Music]

so essential elements are those without

which no contract can validly exist

they are also known as the essential

requisites of a contract

so consent object or cause

and consideration so remember c

o c all right c o c stands for consent

over object

eventually nothing

some natural elements those found in

certain contracts and presumed to exist

unless the contrary has been stipulated

for example in a contract of sale

yes um one of its natural elements is

the warranty

no against heat defects

it's already given implied natural

element of a contract okay they are

presumed to exist

[Music]

stipulations that may be agreed upon by

the constructing parties in a contract

there must be a payment for interest uh

there is no

yeah there is no

[Music]

[Music]

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not allowed by law because your object

which is one of the essential requisites

i void

so you know contrary to public policy

freedom and limitations on contractual

stipulation

under article 1306 of the newspaper

so we invite uh the students to open her

code provisions and read it directly

from

your code first stop a turning away

so one of the liberties being guaranteed

by the constitution to every individual

is the right to enter into a contract in

accordance with article 3

section 10 of the 1987 philippine

constitution

so caution must be made however that

this freedom to contract refers only to

legally valid ones so yes again means

or anyway that's the freedom to contract

so

that's guaranteed by the philippine

constitution and towards the latter

partners in albania

[Music]

one of the limitations in construction

stipulations is that first

contracts should be in accordance with

the law

not contrary to it so if it's contrary

to the law

of freedom right next contracts

should not

is not uh moral and you cannot do that

anyway

contracts should not be contrary to good

customs

customs and contracts should not be

contrary

to public order or public policy

and the contracts of the parties must

conform with the law in force

at that time the hot shock was executed

you know so a materiality tornado is

that at that time that

the contract was excited

uh during that time so let's proceed to

the characteristics of a contract so una

marathon

obligatory force of a contract we have

mutuality of contracts

we also have relativity of contracts

so that law of obligatory force

mutuality

and relativity obligatory force which

means that

a contract constitutes as the law

between the contracting parties

you're obliged to comply it's the law

between the parties

it's the law between the parties so and

there's no problem as regards that how

about mutuality

the validity and performance of

contracts cannot be left to the soul

will of only one of the contracting

parties

so by the mutuality of contracts both

parties are bound to comply with its

terms and conditions

this principle is based on the essential

equality of the parties

because it is repugnant to bind one

party and yet

leave the other three

it must be consensual no i mean um it

should

apply to both

[Music]

obligation of contracts should not be

impaired

is that is that absolute or anyway of

course

in general exceptions or limitations

so the rule that obligation of contracts

should not be impaired is not absolute

thus the free exercise of religious

beliefs is superior to

contractual rights so can you give us an

example attorney

for example the belief of a religious

sect that its members should not join a

labor organization or participate in a

collective bargaining agreement so

nothing will make lashing um between

[Music]

can you really impair the obligation of

contracts as regards the labor

organization to give way for

the religious belief of that person the

answer is

yes

young rule that the obligation of

concussion not being impaired

right that's in the case of an essential

universe

nationally and under the mutuality

principle next anyway so

next characteristics i characteristic i

am relativity of contracts

only the contracting parties and their

successors are bound by the contract

yes

so as a general rule again the effect of

a contract

extends only between the parties their

assigns

and their errors all right

a pancha takes effect only between the

parties their assignments

and errors except in the case of in

transmissible

uh so many similar transmissible

contracts they are purely personal for

example

partnership and agency because when a

partner

when a partner dies or when an agent

dies

partnership systems exist

[Music]

in transmissible contracts in very

nature of the obligation that requires

special personal qualifications of the

obligor

like support

obligation to give support

payment of money or that's not

transmitted to the heirs but

to the estate or by the dino menu

insurance miscible contract

are you stipulated by the parties to be

in transmissible wedding

from the beginning but the party is

stipulated otherwise

again if it's the stipulation in the one

chocolates then low

yes provided it's not contrary to no

more customs public order and public

policy

okay so another rule uh under relativity

is that no one may contract in the name

of

another a person as a general rule

cannot be bound by a contract which was

entered into

another without his knowledge or to

which he has not

given consent but hence no one should

enter into a contract in the name of

another without the latter's authority

or consent

now

uh the same so otherwise the same

contract shall be considered as

unenforceable

so enforceable unless ratified by him

before the revocation

by the other constructing party that's

an interesting topic towards

the end of contracts no no um

[Music]

yeah there are different kinds of

contracts classification and let's

proceed with the classifications of

contracts and

it could be according to subject matter

according to name according to

perfection

so so a classification of contracts

according to subject matter

we have things like in a contract of

sale

we have services like in a contract of

agency or a list of services

we also have uh rights or credits

provided these are transmissible like a

contract of use of wrap or

assignment of credits subject matter

and subject matter is things like

support of sales

rights or credits provided

[Music]

[Music]

specific name or designation in the law

for example

partnership sale agency or deposit

yes how would you nominate a specific

assume dominate

yeah with a specific name or designation

indo

for example in sale when you bought

something

uh for example when you um

you give anything to a person without uh

consideration that's

that which has no specific name or

designation in law

there are different kinds of you know we

need one yeah first officials

[Music]

that you may give i give that to me

[Music]

i give

[Music]

so i do that you may do

but i would just like to reiterate there

is a first uh kind of

nominee nothing you said do with this um

it no longer uh is an innovative

contract because it has already been

given a name of its own that is

[Music]

so if i give you my cell phone and then

you give me for example a

there is a lawyer for example an

attorney who renders legal

services for a close friend um

can the lawyer still charge young

friends

for authorities fees even in the absence

of an

agreement they're gone yes because this

is because of the

nominee contract of fascist or i do that

you may give

which in turn is based on the principle

that

one cannot unjustly enrich himself at

another's expenses

versus court of affairs and i think it

doesn't just apply to

lawyers all kinds of professions

it be as a civil engineer if you do a

work for

someone as to how much

and you still have a right to collect

which you wanna love um

[Music]

okay

which is according to perfection so we

have three

under according to perfection merida

consensual

which

[Music]

are perfected by mere consent and from

that moment the parties are bound not

only to fulfill of what has been

expressly stipulated

but also to all the consequences which

according to their nature may be in

keeping with good faith

usage and law i think

if you're a student of public one you're

supposed to know

hindi yes

[Music]

is there a contract of sale between

apparently and apparently

even in the absence of european

agreement yes the answer is

yes yes but there must be an intention

which is perfected by the delivery of

the subject

matter of the contract examples are

deposited

of the thing which is the subject matter

of the contract

yes

examples

[Music]

[Music]

is

[Music]

there is if the statement is that in

that case there is already a perfected

contract of pledge

because uh because there is only the

meeting of the minds

so the answer is false because pledge

is a real contract and meeting of minds

is not enough there must be delay

the thing or the subject matter

take note of that okay

oh my gosh covford casino article 11

article 13 16. bill contracts such as

deposit

pledge and commodatum are not perfected

until the delivery of

the subject of the object of

i'm the obligation source more

basically

[Music]

so solemn contract requires compliance

with certain formalities prescribed by

law

such prescribed form being there by an

essential element thereof

for example the nation of real property

which must be in a public

instrument oh

meeting of mine there is

a certain formality prescribed by law in

order for

it to be valid and enforceable

[Music]

the foreign