Obligations & Contracts II

Contracts

It shall be obligatory in whatever form they may have been entered into, provided all the essential requisites for their validity are present.

Cause of contracts

It is the essential or more proximate purpose why a party assumes an obligation; the reason which moves the contracting parties to enter into a contract.

Compliance

The life of a contract, where its terms are being complied with or being implemented.

Preparation

Also known as generation; the negotiations stage of the contract leading to a definite agreement.

Perfection

The birth of the contract, or the commencement of the contract's judicial life.

Consummation

The extinction of the contract by the performance of an obligation created by it. Also known as termination.

Moral damages

May be recovered if they are the proximate cause or the result of the defendant's wrongful act or omission

Temperate damages

May be recovered when the court finds that some pecuniary loss has been suffered.

Corrective damages

Imposed in addition to other damages paid as an example for the public good.

Liquidated damages

Damages agreed upon by the parties to a contract, paid in case of breach.

Nominal damages

Awarded to vindicate or recognize the right of the plaintiff which has been violated.

Actual damages

The adequate compensation for pecuniary loss suffered.

Payment

The delivery but also the performance of an obligation

Recission

It is a remedy granted by law to third persons to secure reparation for damage caused by a contract.

Lump sum contract

The designer-contractor agrees to furnish both the labor and the materials and to deliver the job completely on the date agreed upon.

Cost plus a fixed amount

A fixed amount representing services rendered; agreed upon beforehand between the designer or contractor who undertakes the job

Cost plus a certain percentage

Neither the employer knows how much the job will cost until after its completion, with the fees representing a pre-determined percentage of the total cost.

Credit

When goods and services are obtained prior to payment based on trust.

Contractor

______ binds himself to execute a piece of work for the employer in consideration of a certain price or compensation.

Acceptance of Work

The employer relieves the contractor of any liability for any defect in the work

Reformation

Remedy in equity using a written instrument made or construed to express or conform to the real intention of the parties when some error or mistake has been committed.

Ratification

It is, in effect, a waiver of one's right to annul a voidable contract.

Undue influence

When a person takes improper advantage over the will of another, depriving the latter of a reasonable freedom of choice.

Void contract

It has no effect at all; it cannot be ratified or validated

Damages

The estimated reparation in money for detriment or injury sustained as caused by violation of a legal right.

Voidable

Valid until annulled

Consent

The conformity of wills; the agreement of the will of one contracting party with that of another or others, upon the object an terms of the contract.

Offer

A proposal to enter into a contract.

Acceptance

The manifestation by the offeree of his agreement to the terms of the offer.

Mistake

Defined as an unconscious ignorance or forgetfulness of the existence or non-existence of a fact, past or present.

Violence

Employment of serious or irresistible force to wrest consent.

Intimidation

This exists when one of the contracting parties is compeeled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property.

Fraud

This exists when through insidious words or machination of one of the contracting parties, the other is induced into a contract, which without them, he would not have agreed.

Rescissible contracts

Valid contracts but causes damage to a 3rd party/aggravates a 3rd party.

Unenforceable contracts

Cannot be sued upon or enforced unless ratifies, thus it is as if they have no effect yet. Also called validable.

void ab initio

void from the beginning

Contractor-Supplied Materials

If the contractor agrees to produce the work from material furnished by him, he shall deliver the thing produced to the employer and transfer dominion over the thing.