Contracts
CONTRACTS
Stages in the life of a contract:
1. Preparation/Generation
2. Perfection/Birth
3. Consummation/Death
Characteristics of Contracts: (ROMA)
1. Relativity (Art. 1311)
2. Obligatoriness & Consensuality (Art. 1315)
3. Mutuality (Art. 1308)
4. Autonomy (Art. 1306)
Stipulation pour Autrui - stipulation in favor of a 3rd party.
Requisites:
1. The stipulation must be part, not whole of the contract;
2. the contracting parties must have clearly and deliberately conferred a favor upon a 3rd person;
3. the 3rd person must have communicate his acceptance;
4. neither of the contracting parties bears the legal representation of the 3rd party.
General Rule: Contracts (except real contracts) are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause.
Except: Acceptance by letter or telegram which does not bind the offerror except from the time it came to his knowledge.
Theories applied to perfection of contracts:
1. Manifestation theory - the contract is perfected from the moment the acceptance is declared or made;
2. Expedition theory - the contract is perfected from the moment the offeree transmits the notification of acceptance to the offerror;
3. Reception theory - the contract is perfected from the moment that the notification of acceptance is in the hands of the offerror;
4. Cognition theory - the contract is perfected from the moment the acceptance comes to the knowledge of the offerror. This is the theory adopted in the Philippines.
Persons incapacitated to give consent:
1. Unemancipated minors;
Except:
1. Contracts for necessaries; 2. Contracts by guardians or legal representatives; 3. Contracts where the minor is estopped to urge minority through his own misrepresentation; 4. Contracts of deposit with the Postal Savings Bank provided that the minor is over 7 years of age.
2. Insane or demented persons unless the contract
Stages in the life of a contract:
1. Preparation/Generation
2. Perfection/Birth
3. Consummation/Death
Characteristics of Contracts: (ROMA)
1. Relativity (Art. 1311)
2. Obligatoriness & Consensuality (Art. 1315)
3. Mutuality (Art. 1308)
4. Autonomy (Art. 1306)
Stipulation pour Autrui - stipulation in favor of a 3rd party.
Requisites:
1. The stipulation must be part, not whole of the contract;
2. the contracting parties must have clearly and deliberately conferred a favor upon a 3rd person;
3. the 3rd person must have communicate his acceptance;
4. neither of the contracting parties bears the legal representation of the 3rd party.
General Rule: Contracts (except real contracts) are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the object and the cause.
Except: Acceptance by letter or telegram which does not bind the offerror except from the time it came to his knowledge.
Theories applied to perfection of contracts:
1. Manifestation theory - the contract is perfected from the moment the acceptance is declared or made;
2. Expedition theory - the contract is perfected from the moment the offeree transmits the notification of acceptance to the offerror;
3. Reception theory - the contract is perfected from the moment that the notification of acceptance is in the hands of the offerror;
4. Cognition theory - the contract is perfected from the moment the acceptance comes to the knowledge of the offerror. This is the theory adopted in the Philippines.
Persons incapacitated to give consent:
1. Unemancipated minors;
Except:
1. Contracts for necessaries; 2. Contracts by guardians or legal representatives; 3. Contracts where the minor is estopped to urge minority through his own misrepresentation; 4. Contracts of deposit with the Postal Savings Bank provided that the minor is over 7 years of age.
2. Insane or demented persons unless the contract