Name: Emmanuel D.

Alquizola

Provide correct responses in the space provided.

QUESTION RESPONSE
1. Define or give the meaning of the following: Contract - A contract is a meeting of minds between two persons
a. contract whereby one binds himself, with respect to the other, to give
b. stipulation pour autrui something or to render some service. (1254a)
c. real contract
d. perfection of contract stipulation pour autrui - a stipulation in a contract clearly and
deliberately conferring a favor upon a third person who has a right to
demand its fulfillment provided he communicates his acceptance to
the obligor before its revocation by the obligee or the original parties;
Contracts containing a stipulation in favor of a third person.

real contract - a type of contract that is perfected by the delivery of the

thing subject matter of the contract

perfection of contract - contracts are perfected by mere consent, and

from the moment the parties are bound not only to the fulfillment of
what has been expressly stipulated but also to all the consequence
which, according to their nature maybe keeping with good faith, usage
and law.
2. May a third person acquire rights under contract to which he is a According to Article 1311 to 1314 of the Civil Code of the Philippines,
stranger or be bound thereby? 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. A mere incidental
benefit or interest of a person is not sufficient. The contracting parties
must have clearly and deliberately conferred a favor upon a third
person. Further, any third person who induces another to violate his
contract shall be liable for damages to the other contracting party
3. How are contracts perfected? Contracts are perfected by mere consent, and from that moment the
parties are bound not only to the fulfilment 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.
4. When will a person be bound by a contract entered into by No one may contract in the name of another without being authorized
another? 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.
5. Give the effects of the perfection of a contract. From the moment the parties come to an agreement on a definite
subject matter and valid consideration, they are bound not only –
a. To the fulfillment of what has be expressly stipulated
b. To all the consequences which according to their nature, may
be in keeping with good faith, usage and law
Signing is not, generally, a legal requirement in entering into a contract
where there is a meeting of the minds. (Art. 1319, par. 1.) Consent may
be either be express or implied, unless the law specifically requires a
particular manner or form of expressing such consent. One who
approved or authorized such contract may be considered a party and
held equally liable
6. Define or give the meaning of the following: Consent - the conformity or concurrence of wills and with respect to
a. consent contracts, it is the agreement of the will of one contracting party with
b. acceptance that of another or others, upon the object and terms of the contract.
c. natural elements Acceptance - the manifestation by the offeree of his asset to all the
d. option contract terms of the other. Without acceptance, there can be no meeting of
e. mistake of law the minds between the parties
Natural Elements - those that are presumed to exist in certain
contracts unless the contrary is expressly stipulated by the parties, like
warranty against eviction or warranty against hidden defects in sale
Option contract - one giving a person for a consideration a certain
period within which to accept the offer of the offerer. It is separate and
distinct from the contract which will be perfected upon the acceptance
of the effect. Option may also refer to the privilege itself given to the
offeree to accept an offer within a certain period.
 Mistake of Law - arises from an ignorance of some provision of law, or
from an erroneous interpretation of its meaning or from an erroneous
conclusion as to the legal effect of an agreement, on the part of the
parties. As a rule, mistake of law does not invalidate consent.
7. When is a contract voidable or annulable? A contract where consent is given through mistake, violence,
intimidation, undue influence, or fraud is voidable.
8. Will the acceptance of a business advertisement of a thing for sale Unless it appears otherwise, business advertisements of things for
produce the perfection of a contract? Explain. sale are not definite offers, but mere invitations to make an offer.
9. Define or give the meaning of the following: Future inheritance - any property or right, not in existence or capable
a. future inheritance of determination at the time of the contract, that a person may inherit
b. physical impossibility in the future, such person having only an expectancy of a purely
hereditary right
Physical impossibility - when the thing or service in the very nature of
things cannot exist or be performed.
10. Give the requisites of things as object of a contract. i) The thing must be within the commerce of men, that is, it can
legally be the subject of commercial transaction.
ii) It must not be impossible, legally or physically
iii) It must be in existence or capable of coming into existence
iv) It must be determinate or determinable without the need of a
new contract between the parties
11. Give the requisites of service as object of a contract. i) The service must be within the commerce of men;
ii) It must not be impossible, physically or legally
iii) It must be determinate or capable of being made determinate
12. May a contract be entered upon future inheritance? Article 1347, paragraph 2 of the Civil Code characterizes a contract
entered into upon future inheritance as void. The law applies when
the following requisites concur: (1) the succession has not yet been
opened; (2) the object of the contract forms part of the inheritance;
and (3) the promissor has, with respect to the object, an expectancy
of a right which is purely hereditary in nature.
13. Define or give the meaning of the following: Cause - the essential reason or purpose which the contracting parties
a. cause have in view at the time of entering into the contract. It is something
b. motive bargained for or given by a party in exchange for a legally enforceable
c. inadequacy of cause promise of another.

14. Give the requisites of cause in a contract.
15. State the effect if the cause of a contract is found to be false?
16. What is the object and what is the cause in a contract of sale?
17. Define or give the meaning of the following:
a. form of contract
b. informal contract
18. What may be the form of a contract?
Motive - the purely personal or private reason which a party has in
entering into a contract. It is different from the cause of the contract.
Inadequacy of cause - Lesion or inadequacy of cause is any damage
caused by the fact that the price is unjust and shall not invalidate a
contract unless there has been fraud, mistake or undue influence.
According to article 1318 of the PHL Civil Code, the essential requisites
of contracts are
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
According to Article 1353 of the Civil Code of the PHL, the statement
of a false cause in contracts shall render them void, if it should not be
proved that they were founded upon another cause which is true and
lawful
A contract of sale is a consensual contract, which becomes valid and
binding upon the meeting of minds of the parties on the price and the
object of the sale. The thing or the object of the contract of sale is a
bilateral or reciprocal contract which is the cause for one is the subject
matter or object for the other, and vice versa. Hence, the distinction is
only a matter of viewpoint.
Form of contract - refers to the manner in which a contract is
executed or manifested. The contract may be oral, or in writing, or
partly oral and partly in writing. It may be express, when the parties
expressly set forth their intentions or implied when their intentions
may be inferred from their actions or conduct. If in writing, it may be
in public or a private instrument.
Informal contract - common or simple contract or that which may be
entered into in whatever form provided all the essential requisites for
their validity.
A contract may be in the form of:
i) an oral agreement, or those that are partly oral and partly
written, which are oral contract in legal effect
 ii) a single written agreement signed by both parties,
wherein all its terms are in writing, regardless if it is hand-
written or electronically encoded/printed
iii) a written agreement with two copies; one signed by one
party, the other signed by the other party.
iv) a set of signed written agreements which are related and
not contradictory.
v) a set of unsigned written agreements identified as part of
the signed written agreements.
vi) any formal written agreement/s:
a. private instrument - has no acknowledgement from a
notary public or any authorized official.
b. public instrument - has acknowledgement from a notary
public or any authorized official.
19. If the law requires a contract to be in writing, will the contract be Article 1358 of the New Civil Code enumerates certain contracts that
invalid if it is not in writing? must appear in public or private documents. This provision does not
require such form in order to validate the act or contract but to insure
its efficacy. Contracts enumerated by this article are, therefore, valid
as between the contracting parties, even when they have not been
reduced to public or private writings. Except in certain cases where
public instruments and registration are required for the validity of the
contract itself, the legalization of a contract by means of a public
writing and its entry in the register are not essential solemnities or
requisites for the validity of the contract as between the contracting
parties but are required for the purpose of making it effective as
against third person.