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CONTRACTS
A. DEFINITION
a. 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 fulfilment of a
prestation to give, to do or not to do.
b. 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.
c. It is the agreement of two or more persons (or parties) for the
purpose of creating, modifying, or extinguishing a juridical
relation between them.
B. ELEMENTS
a. ESSENTIAL ELEMENTS without them a contract cannot exist
i. Consent of the contracting parties
ii. Object certain which is the subject matter of the contract
iii. Cause of the obligation which is established
b. NATURAL ELEMENTS found in certain contracts and presumed
to exist, unless the contrary has been stipulated
i. Warranty against eviction
ii. Hidden defects in the contract of sale
c. ACCIDENTAL ELEMENTS various particular stipulations that may
be agreed upon by the contracting parties in a contract. They
maybe present or absent, depending upon whether or not the
parties have agreed upon them.
i. Stipulation to pay credit
ii. Stipulation to pay interest
iii. Designation of the particular place for the delivery or
payment
C. CHARACTERISTICS
a. OBLIGATORY FORCE there is a juridical necessity to give, to do
or not to do.
b. MUTUALITY both parties are bound and they are essentially and
equally binded with one another.
i. Consequences of Mutuality (1308)
1. A party cannot revoke or renounce a contract without
the consent of the other, nor can it have it set aside
on the ground that he had made a bad bargain.
2. When the fulfilment of the condition depends upon
the sole will of the debtor, the conditional obligation
is void if the condition is suspensive unless of course
if the obligation is resolutory.
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