Members:
Arceo, Cathleen Joi
Llona, Maria Anabelle
Labuguen, Jenny
Nogoy, Jhaychee
Sabado, Paola
Art. 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. (1254a)
Art. 1305 of the Civil Code defines a contract as “a meeting
of the minds between two persons whereby one binds
himself, with respect to the other, to give something or to
render some service.” Once the meeting of the contracting
parties meet, a valid contract exists, whether it is reduced to
writing or not. When the terms of an agreement have been
reduced in writing, it is considered as containing all the terms
agreed upon.
Essential Elements of a Contract
1. Consent of the contracting parties;
2. Object certain which is the subject matter of the
contract; and
3. Cause of the obligation which is established.
Example:
> Parties Involved: Alex and Jamie
Agreement: Alex agrees to sell his bicycle to
Jamie for ₱5,000.
Classification of contracts
1. According to their relation to other contracts:
a. Preparatory
Those which have for their object the
establishment of a condition in law which is
necessary as a preliminary step towards the
celebration of another subsequent contract.
Example: Contract of Partnership, Contract of
Agency
Classification of contracts
b. Principal
Those which can subsist independently from other
contracts and whose purpose can be fulfilled by
themselves.
Example:Contract of Sale, Contract of Lease
Classification of contracts
c. Accessory
Those which can exist only as a consequence
of, or in relation with, another prior contract.
Example: Contract of Pledge, Contract of
Mortgage
Classification of contracts
2. According to their perfection:
a. Consensual
Those which are perfected by the mere
agreement of the parties.
Example: Contract of Sale, Contract of Lease
Classification of contracts
b. Real
Those which require not only the consent of the
parties in their perfection, but also the delivery of
the object by any one party to the other.
Example: Contract of Commodatum, Contract of
Deposit, Contract of Pledge
Classification of contracts
3. According to their form:
a. Common or informal
Those which do not require some particular
form.
Examples: Contract of Loan, Contract of Lease
Classification of contracts
b. Special or formal
Those which require some particular form.
Examples: Contract of Donation, Contract of
Chattel Mortgage
Classification of contracts
4. According to their purpose:
a. Transfer of ownership
Example: Contract of Sale
Classification of contracts
b. Conveyance of use
Example: Contract of Commodatum
c. Rendition of services
Example: Contract of Agency
Classification of contracts
5. According to their subject matter:
a. Things
Examples: Contract of Sale, Contract of Deposit,
Contract of Pledge
Classification of contracts
b. Services
Examples: Contract of Agency, Contract of Lease
of Services
Classification of contracts
6. According to their vinculum which they produce:
a. Unilateral
Those which give rise to an obligation for only
one of the parties.
Examples: Contract of Commodatum, Contract of
Gratuitous Deposit
Classification of contracts
b. Bilateral
Those which give rise to reciprocal obligations
for both parties.
Examples: Contract of Sale, Contract of Lease
Classification of contracts
7. According to their cause:
a. Onerous
Those in which each of the parties aspires to
procure for himself a benefit through the giving of
an equivalent or compensation.
Example: Contract of Sale
Classification of contracts
b. Gratuitous
Those in which one of the parties proposes to
give to the other a benefit without any equivalent or
compensation.
Example: Contract of Commodatum
Classification of contracts
8. According to risks involved:
a. Commutative
Those where each of the parties acquires an
equivalent of his prestation and such equivalent is
pecuniarily appreciable and already determined
from the moment of the celebration of the contract.
Classification of contracts
b. Aleatory
Those where each of the parties has to account
for the acquisition of an equivalent of his prestation,
but such equivalent, although pecuniarily
appreciable, is not yet determined at the moment of
the celebration of the contract, since it depends on
the happening of an uncertain event, thus charging
the parties with a risk of loss or gain.
Example: Contract of Insurance
Classification of contracts
9. According to their names or norms regulating
them:
a. Nominate
Those which have their own individuality and
are regulated by special provisions of law.
Examples: Contract of Sale, Contract of Lease
Classification of contracts
b. Innominate
Those which lack individuality and are not
regulated by special provisions of law.
Example: Contract or Agreement or Memorandum
of Agreement Memorandum of Understanding
which is not regulated by special provisions of law
A contract of adhesion is a contract whereby
almost all of the provisions are drafted by one
party. The participation of the other party is in
affixing his signature or his "adhesion" to the
contract. In most cases, contracts of adhesion are
strictly construed against the party who drafted it.
It is erroneous, however, to conclude that contracts
of adhesion are invalid per se. They are, on the
contrary, as binding as ordinary contracts. A party
in reality has the option to accept or reject it. A
contract of adhesion becomes void only when the
dominant party takes advantage of the weaker
party, completely depriving the latter of the
opportunity to bargain on equal footing.
Example:
Concert Tickets: When you buy tickets online,
the terms are pre-set, and you can’t negotiate
them; you either accept them or don’t buy the
tickets.
The sales invoices are in the nature of contracts of
adhesion.
This negates the theory that held that contracts of
adhesion are binding as a general rule. Those who
deny the contract are in reality in no better position than
those who seek to enforce them. It is due to this reason
that the Supreme Court struck down contracts of
adhesion when it found that one party took advantage
of the economic status of the other party, completely
depriving the latter of the opportunity to bargain on
equal footing.
Art. 1306
The contracting parties may establish such stipulations,
clauses, terms, and conditions as they may deem
convenient, provided they are not contrary to law, morals,
good customs, public order, or public policy.
Example
Scenario: Two friends agree that one will sell their old
phone to the other for ₱5,000.
Stipulation: They decide that if the phone is found to
be defective within a week, the seller will refund the buyer.
What is autonomy of contracts or freedom of
contract?
The autonomy of contracts, also known as
freedom of contract, refers to the principle that
individuals have the right to enter into agreements
and determine the terms of those agreements
without interference from external parties, such as
the government. This principle is foundational in
contract law and emphasizes the importance of
individual choice and self-determination in legal
agreements.
Contrary to Morals and Law
refers to actions or behaviors that violate both
ethical standards (morals) and legal regulations
(laws). This phrase highlights the intersection
where legal frameworks and societal moral values
diverge or align.
Understanding Morals and Law
Morals: These are the principles that govern an
individual's understanding of right and wrong.
Morality can vary significantly across different
cultures and societies.
Law: This is a system of rules created and
enforced through social or governmental
institutions to regulate behavior. Laws are designed
to maintain order and protect individuals and
property.
COMPROMISE AGREEMENT
is basically a contract between two parties to
settle a dispute without going to court. Here’s a
quick breakdown:
1. Purpose: It aims to resolve disagreements
amicably, often involving some form of
compensation or concession from one party to
another.
2. Common Use: These are often used in
employment situations, where an employee agrees
not to pursue legal claims against an employer in
exchange for a financial settlement.
3. Requirements: For it to be valid, it usually
needs to be in writing and the employee must have
received independent legal advice.
What is PUBLIC POLICY?
Public policy refers to the aims of the state to
promote the social and general well-being of the
inhabitants.
In this jurisdiction, public policy has been
defined as that principle of the law which holds that
no subject or citizen can lawfully do that which has
a tendency to be injurious to the public or against
the public good. Thus, where public policy is
advanced by either party, they may be allowed to
recover, despite the transaction.
Art. 1307
Innominate contracts shall be regulated by the
stipulations of the parties, by the provisions of
Titles I and II of this Book, by the rules governing
the most analogous nominate contracts, and by the
customs of the place.
What is a nominate contract?
A nominate contract refers to those which have
their own individuality and are regulated by special
provisions of law.
Examples: Contract of sale, Contract of lease
What is an innominate contract?
An innominate contract refers to those which lack
individuality and are not regulated by special
provisions of law.
Example
Imagine you and a friend agree that you'll paint
their house, and in return, they'll help you with your
garden. This agreement isn't a standard contract
like a sale or lease, so it's considered an
innominate contract
Kinds of innominate contract
1. Do ut des – I give that you give.
2. Do ut facias – I give that you do.
3. Facio ut des – I do that you give.
4. Facio ut facias – I do that you do.
Rules on innominate contracts
[Link] of the parties;
[Link] provisions of the Civil Code on obligations
and contracts;
[Link] rules governing the most analogous
nominate contracts; and
4. The customs of the place.
Articles 1458, 1498, and 1307 of the Civil Code
which are pertinent to the resolution of the petition
provide:
Art. 1458. By the contract of sale one of the
contracting parties obligates himself to transfer the
ownership of and to deliver a determinate thing,
and the other to pay therefore a price certain in
money or its equivalent.
Art. 1498. When the sale is made through a
public instrument, the execution thereof shall
be equivalent to the delivery of the thing which
is the object of the contract, if from the deed the
contrary does not appear or cannot clearly be
inferred.
Art. 1307. Innominate contracts shall be regulated
by the stipulations of the parties, by the provisions
of Title I and II of this Book, by the rules governing
the most analogous nominate contracts, and by
the custom of the place.
Art. 1308.
The contract must bind both contracting parties; its
validity or compliance cannot be left to the will of
one of them. (1256a)
Article 1308 of the Civil Code expresses what is
known in law as the principle of mutuality of
contracts.
It is a fundamental rule that contracts, once
perfected, bind both contracting parties, and
obligations arising therefrom have the force of law
between the parties and should be complied with
in good faith. But the law recognizes exceptions to
the principle of the obligatory force of contracts.
One exception is laid down in Article 1266 of the
Civil Code, which reads:
The debtor in obligations to do shall also be
released when the prestation becomes legally or
physically impossible without the fault of the
obligor.²⁵
Purpose of mutuality principle
The ultimate purpose of the mutuality principle is
thus to nullify a contract containing a condition
which makes its fulfillment or pre-termination
dependent exclusively upon the uncontrolled will of
one of the contracting parties.
For example:
if you and a friend agree to trade services—like
you help them with their studies, and they help you
with your chores—both of you must fulfill your
parts of the agreement. If one party fails to do their
part, the other party has the right to hold them
accountable.
Chapter 1 - General Provisions
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. (n)
Example:
Imagine two parties agree to a contract for a
service, but they decide that the price and delivery
date will be set by a mutual friend. This friend’s
decision will only matter once both parties know
what it is.
Article 1310.
The determination shall not be obligatory if it is
evidently inequitable. In such case, the courts shall
decide what is equitable under the circumstances.
(n)
Example:
If Leah gives Piolo a piece of land for free, but
Piolo's creditors claim that this act harms their
interests, the court may step in.
Art. 1311.
Contracts only apply to parties, their assigns, and
heirs, unless they are not transmissible by nature,
stipulation, or law. An heir is only liable for the
property they received from the decedent. If a
contract contains a stipulation favoring a third party,
they can demand its fulfillment if they communicate
their acceptance before revocation. Incidental
benefits or interests are not sufficient; the
contracting parties must have deliberately conferred
favor upon the third person.
Relativity of Contracts
The above article refers to the principle of
Relativity of Contracts.
General Rule:
Contracts take effect only between the parties,
their assigns, and heirs.
Exceptions:
1. Contracts are not transmissible by their nature;
or
2. Contracts are not transmissible by stipulation;
or
3. Contracts are not transmissible by provision of
law.
A contract in civil law is a legal agreement that
only binds the parties who entered into it or
their successors, and cannot favor or prejudice
a third party. The obligation of a contract is
limited to the parties making it, and only those
involved are liable for its breach. Contracting
parties cannot impose liability on a stranger
under its terms. To bind a third party, an
expression of assent is necessary.
Example:
Imagine Alice and Bob enter into a contract
where Alice agrees to sell her car to Bob. If
Alice dies, her obligation to sell the car does
not transfer to her heirs unless specified in the
contract.
So, Bob can't demand the car from Alice's
heirs unless they agree to the contract
Example:
Imagine Alice and Bob enter into a contract
where Alice agrees to sell her car to Bob. If
Alice dies, her obligation to sell the car does
not transfer to her heirs unless specified in the
contract.
So, Bob can't demand the car from Alice's
heirs unless they agree to the contract
Four Exceptional cases to the principle of
relativity of contracts
1. If a contract should contain some stipulation
in favor of a third person, he may demand its
fulfillment provided he communicated his
acceptance to the obligor before its revocation.
(32)
2. In contracts creating real rights, third
persons who come into possession of the
object of the contract are bound thereby. (33)
Four Exceptional cases to the principle of
relativity of contracts
3. Creditors are protected in cases of contracts
intended to defraud them. (34)
4. A third person who induces another to
violate his contract shall be liable for damages
to the other contracting party. (35)
Art. 1312.
In contracts creating real rights, third persons
who come into possession of the object of the
contract are bound thereby, subject to the
provisions of the Mortgage Law and the Land
Registration Laws. (n)
This is an exception to the principle of relativity
of contracts.
For example:
if a person sells a piece of land to someone,
and that person later sells it to a third party, the
third party is still bound by the original contract
terms regarding the land, even if they weren't
part of the initial agreement.
Art. 1313. Creditors are protected in cases of
contracts intended to defraud them. (n)
This is also an exception to the principle of
relativity of contracts.
Article 1313 of the Civil Code provides that
"creditors are protected in cases of contracts
intended to defraud them." Further, Article 1381 of
the Civil Code provides that contracts entered into
in fraud of creditors may be rescinded when the
creditors cannot in any manner collect the claims
due them.
Example:
If a person, Leah, gives away a parcel of land
to Piolo without any payment, and Leah has
outstanding debts, her creditors can ask for the
cancellation of that contract. They can do this
because they were harmed by Leah's action of
giving away her property, which could have been
used to pay her debts.
This means creditors have the right to
challenge contracts that seem unfair or harmful to
their interests.
Example:
If a person, Leah, gives away a parcel of land
to Piolo without any payment, and Leah has
outstanding debts, her creditors can ask for the
cancellation of that contract. They can do this
because they were harmed by Leah's action of
giving away her property, which could have been
used to pay her debts.
This means creditors have the right to
challenge contracts that seem unfair or harmful to
their interests.
Art. 1314. Any third person who induces another
to violate his contract shall be liable for damages
to the other contracting party. (n)
What is tort interference?
The above article expresses the principle of
tort interference. This is an exception to the
principle of relativity of contracts.
The tort recognized in that provision is known as
interference with contractual relations. The
interference is penalized because it violates the
property rights of a party in a contract to reap the
benefits that should result therefrom.
While it is true that a third person cannot possibly
be sued for breach of contract because only the
parties can breach contractual provisions, a
contracting party may sue a third person not for
breach but for inducing another to commit such
breach.
Examples of Tortious Interference
Blackmail: A person threatens a contractor to
induce them to break a contract with another
party.
Obstruction: A supplier refuses to deliver goods
to a business, preventing that business from
fulfilling its contract with a client.
Undermining Sales: Offering a property at a lower
price to a buyer who is already in negotiations
with another seller, knowing this could cause the
original sale to fall through.
ELEMENTS OF TORT INTERFERENCE
The elements of tort interference are:
1. Existence of a valid contract
As regards the first element, the existence of a
valid contract must be duly established.
2. Knowledge on the part of the third person of
the existence of a contract
The second element, on the other hand, requires
that there be knowledge on the part of the
interferer that the contract exists.
3. Interference of the third person is without
legal justification
Art. 1315. Contracts are perfected by mere
consent, and from that 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 in keeping with good faith, usage and law.
(1258)
Article 1315 of the Civil Code of the Philippines
pertains to contracts and obligations. It states that
"Contracts are perfected by mere consent, and
they are obligatory, not only as to the parties who
enter into them, but also to their heirs and assigns,
except in cases where the law provides otherwise."
Example:
Lease Agreement: When you sign a lease for an
apartment, both you and the landlord consent to
the terms. This contract is binding not only on you
and the landlord but also on your heirs (if you pass
away) and the landlord's heirs.
Employment Contract: If you enter into an
employment contract, the terms agreed upon are
obligatory for both you and the company, and this
obligation can extend to your successors or the
company's successors.
Art. 1316. Real contracts, such as deposit, pledge
and commodatum, are not perfected until the
delivery of the object of the obligation. (n)
Example of Article 1316 in Practice
-Scenario: Imagine a situation where a person is
pressured into signing a lease agreement for an
apartment under threat of losing their job. In this
case, the consent given is not considered free and
voluntary.
Art. 1316. Real contracts, such as deposit, pledge
and commodatum, are not perfected until the
delivery of the object of the obligation. (n)
Example of Article 1316 in Practice
-Scenario: Imagine a situation where a person is
pressured into signing a lease agreement for an
apartment under threat of losing their job. In this
case, the consent given is not considered free and
voluntary.
-Legal Outcome: The individual may have the
right to void the lease agreement based on Article
1316, as their consent was obtained through
coercion.
Stages in the life of a contract
1. Preparation or Negotiation
Begins from the time the prospective contracting
parties manifest their interest in the contract and
ends at the moment of agreement of the parties.
Negotiation is formally initiated by an offer.
Accordingly, an offer that is not accepted, either
expressly or impliedly, precludes the existence of
consent, which is one of the essential elements of
a contract.⁴³
Stages in the life of a contract
2. Perfection or birth of the contract.
Takes place when the parties agree upon the
essential elements of the contract.
3. Consummation of the contract
The parties fulfill or perform the terms agreed upon
in the contract, culminating in its extinguishment.⁴⁴
CLASSIFICATION OF CONTRACTS
ACCORDING TO THEIR PERFECTION:
A. CONSENSUAL CONTRACT
Those which are perfected by the mere
agreement of the parties.
Examples: Sale, Lease
B. REAL CONTRACT
Those which require not only the consent of
the parties for their perfection, but also the
delivery of the object by any one party to the
other.
Examples: Commodatum, Deposit, Pledge
What is Commodatum, Deposit, and Pledge?
Commodatum
One of the parties delivers to another, either
something not consumable so that the latter may
use the same for a certain time and return it, in
which case the contract is called a
commodatum.⁴⁸
Deposit
A deposit is constituted from the moment a
person receives a thing belonging to another, with
the obligation of safely keeping it and of returning
the same.
Pledge
In a contract of pledge, the creditor is given the
right to retain his debtor’s movable property in his
possession, or in that of a third person to whom it
has been delivered, until the debt is paid.⁵⁰
c. Formal Contract or Solemn Contract
When the law requires that a contract be in
some form in order that it may be valid or
enforceable, or that a contract be proved in a
certain way, that requirement is absolute and
indispensable.
Here are some examples of formal contracts that
illustrate their validity:
1. Real Estate Purchase Agreement
A real estate purchase agreement is a formal
contract that outlines the terms of buying or selling
property. It must be in writing and typically
requires signatures from both parties. This
contract includes details such as the purchase
price, property description, and closing date.
2. Employment Contract
An employment contract is a formal agreement
between an employer and an employee. It
specifies the terms of employment, including job
responsibilities, salary, benefits, and termination
conditions. This contract is legally binding once
signed by both parties.
3. Lease Agreement
A lease agreement is a formal contract between a
landlord and a tenant. It outlines the terms of
renting a property, including the rental amount,
duration of the lease, and responsibilities of both
parties. This contract is enforceable in court if
either party fails to adhere to its terms.
4. Shareholder Agreement
A shareholder agreement is a formal contract
among the owners of a corporation. It details the
rights and obligations of shareholders, including
how shares can be sold or transferred. This
contract often requires notarization to be legally
binding.
5. Loan Agreement
A loan agreement is a formal contract between a
lender and a borrower. It specifies the loan
amount, interest rate, repayment schedule, and
consequences of default. This contract is
enforceable in court, ensuring that both parties
adhere to the agreed terms.
Art. 1317.
No one may contract in the name of another
without being authorized by the latter, or unless he
has by law a right to represent him.
A contract entered into in the name of another
by one who has no authority or legal
representation, or who has acted beyond his
powers, shall be unenforceable, unless it is
ratified, expressly or impliedly, by the person on
whose behalf it has been executed, before it is
revoked by the other contracting party. (1259a)
Example:
Imagine you want to buy a car, but you're busy.
You ask your friend to sign the contract for you. If
your friend doesn't have your permission or legal
authority to do that, the contract is unenforceable.
This means the car seller can't hold you or
your friend to that contract because your friend
acted without proper authorization.
General Rule: No one may contract in the name
of another.
Exceptions:
1. The person entering into a contract in the name
of another has been authorized by the latter.
2. The person entering into a contract in the name
of another has by law a right to represent him.
Effect of an unauthorized contract
A contract entered into in the name of another by
one who has no authority or legal representation,
or who has acted beyond his powers, shall be
unenforceable.
THANKYO
U
QUIZ
QUIZ
I. Choose the correct answer.
1. Those which require not only the consent of the
parties for their perfection, but also the delivery of
the object by any one party to the other.
a. Formal
b. Real
c. Consensual
d. Principal
2. The requisites of a stipulation pour autrui or a
stipulation in favor of a third person are the
following, except:
a. There must be a stipulation in favor of a third
person.
b. The stipulation must be a part of the contract.
c. The contracting parties must have clearly and
deliberately conferred a favor upon a third person,
a mere incidental benefit or interest.
d. The third person must have communicated his
acceptance to the obligor before its revocation.
3. Contracts take effect only between the parties,
their assigns and heirs, except in case where the
rights and obligations arising from the contract are
not transmissible by their nature, or by stipulation
or by provision of law.
a. Autonomy of contract
b. Relativity of contract
c. Formality of contract
d. Mutuality of contract
4. Those which give rise to an obligation for only
one of the parties.
a. Informal
b. Formal
c. Unilateral
d. Bilateral
5. Begins from the time the prospective
contracting parties manifest their interest in the
contract and ends at the moment of agreement of
the parties.
a. Preparation
b. Perfection
c. Consummation
d. None of the above
6. X offers to sell his house to Y for P1,000,000. Y
requested if he would accept P950,000. Which of
the following is correct?
a. The contract is void because there is no
consent.
b. Y’s response is a counter-offer because it is not
absolute.
c. Y’s response is a mere request, hence, the offer
is still effective.
d. Y’s response is a counter-offer because it is
qualified.
7. Those which have their own individuality and
are regulated by special provisions of law.
a. Nominate
b. Unilateral
c. Innominate
d. Gratuitous
8. Those which can subsist independently from
other contracts and whose purpose can be fulfilled
by themselves.
a. Preparatory
b. Accessory
c. Formal
d. Principal
9. Those which have for their object the
establishment of a condition in law which is
necessary as a preliminary step towards the
celebration of another subsequent contract.
a. Principal
b. Preparatory
c. Accessory
d. Formal
10. D borrowed a sum of money from C with a
certain rate of interest. C now wants to increase
the rate of interest without the consent of D. What
principle in contracts prohibits C from doing so?
a. autonomy of contracts
b. relativity of contracts
c. mutuality of contracts
d. consensuality of contracts
11. It 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.
a. Law
b. Contract
c. Obligation
d. Memorandum of Agreement
12. Is a contract whereby the parties, by making
reciprocal concessions, avoid litigation or put an
end to one already commenced.
a. Compromise agreement
b. Auto-contract
c. Contract of adhesion
d. Memorandum of agreement
13. Those which give rise to reciprocal obligations
for both parties.
a. Informal
b. Formal
c. Unilateral
d. Bilateral
14. Those which can exist only as a consequence
of, or in relation with, another prior contract.
a. Principal
b. Preparatory
c. Accessory
d. Formal
15. Those where each of the parties acquires an
equivalent of his prestation and such equivalent is
pecuniarily appreciable and already determined
from the moment of the celebration of the
contract.
a. Unilateral
b. Commutative
c. Aleatory
d. Gratuitous
16. When the law requires that a contract be in
some form in order that it may be valid or
enforceable, or that a contract be proved in a
certain way, that requirement is absolute and
indispensable.
a. Consensual contract
b. Real contract
c. Formal contract
d. Unilateral contract
II. TRUE OR FALSE
[Link] determination of the performance may be
left to a third person, whose decision shall not be
binding until it has been made known to one of the
contracting parties.
[Link] must be mutuality between the
parties based on their essential equality to
which is repugnant to have one party bound
by the contract leaving the other free
therefrom.
3. Where acts stipulated in a contract require the
exercise of special knowledge, genius, skill, taste,
ability, experience, judgment, discretion, integrity,
or other personal qualification of one or both
parties, the agreement is of a personal nature,
and terminates on the death of the party who is
required to render such service.
4. A contract of adhesion becomes void only when
the dominant party takes advantage of the
weakness of the other party.
5.A contract containing a condition which makes
its fulfillment dependent exclusively upon the
uncontrolled will of one of the contracting parties,
is valid.
[Link] a contract should contain some stipulation in
favor of a third person, he may demand its
fulfillment provided he communicated his
acceptance to the obligor after its revocation.
7. A contract which requires, in addition to the
above, the delivery of the object of the agreement,
as in a pledge or commodatum, is commonly
referred to as a formal contract.
8. It is a rule that a contract freely entered
between the parties should be respected, though
a contract is not the law between the parties.
9. Once the minds of the contracting parties meet,
a valid contract exists whether it is reduced to
writing or not.
10. When a compromise agreement is given
judicial approval, it becomes more than a contract
binding upon the parties.
III. identification
List the many types of innominate contracts in
English.
1. Do ut des
2. Do ut facias
3. Facio ut des
4. Facio ut facias
