Law on Obligations and Contracts: General Provisions

These flashcards cover key terms and definitions related to contracts, obligations, and the essential requisites as discussed in the lecture on Law on Obligations and Contracts.

Contract

A meeting of minds between two or more parties, where one party binds himself to give something or render a service.

Obligation

A legal tie or relation that exists after a contract has been entered into.

Meeting of Minds

The intention of the parties to enter into a contract regarding the subject matter and consideration.

Stages in the Making of a Contract

The three stages are: 1) Conception, 2) Perfection, 3) Consumation.

Autonomy (NCC, Art. 1306)

The freedom of parties to stipulate terms within a contract.

Mutuality (NCC, Art. 1308)

The obligation that a contract must bind both parties.

Res inter alios acta

A principle meaning that a contract does not affect or concern third parties.

Stipulation pour autrui

A stipulation in favor of a third person which confers direct benefits to that person.

Intimidation (NCC, Art. 1335)

Compelling consent by a reasonable fear of imminent and grave evil.

Fraud (NCC, Art. 1338)

Inducing a party to enter into a contract through deceitful words or machinations.

Vices of Consent

Flaws in consent that may render contracts voidable, including mistake, intimidation, violence, undue influence, and fraud.

Essential Requisites of Contracts

The three critical elements needed for a contract are: 1) Consent; 2) Object; 3) Cause (NCC, Art. 1318).

Statute of Frauds (NCC, Art. 1403)

A legal requirement that certain contracts must be in writing to be enforceable.

Void Contract

A contract that has no legal effect and cannot be ratified.

Rescissible Contract (NCC, Art. 1381)

Contracts that can be set aside due to economic damage or lesion to one of the parties.

Voidable Contract (NCC, Art. 1390)

Contracts with vitiated consent that are binding until annulled.

Unenforceable Contract

A contract that cannot be legally enforced due to some defect.

Reformation of Instruments (NCC, Art. 1359)

The process of correcting a written agreement to reflect the true intentions of the parties.