Frias, Janna Mari C.

BSAIS 2nd year

Article 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.

The article 1305 is the meaning of contracts, which is a meeting of minds between two
persons. With the purpose to render service, give something and to respect each other.

Article 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, public policy.

The article 1306 defines the autonomy of contract, which is how the contracting parties
will commence and apply their said conditions that are not contrary to any law, morals,
good customs, public order, public policy.

Article 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.

The article 1307 defines that innominate contracts are regulated by the parties, by the
provisions of Titles I and II of this Book, by the rules governing nominate contracts and
the customs of the place.

Innominate Contracts
1. Do ut des – I give that you may give
2. Do ut facias – I give that you may do
3. Facio ut des – I do that you may give
4. Facio ut facias – I do that you may do
Article 1308 – The contracts must bind both contracting parties; its validity or
compliance cannot be left to the will of one of them.

The article 1308 defines that contracts must connect both the parties. Its validity or
compliance should apply to both contracting parties.

Article 1311 – 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. The
heir is not liable beyond the value of the property he received from the decedent.

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.

The article 1311 refers to principle of relativity between the contracting parties on their
assigned duties. In addition, if ever there is a third party between the two contracting
parties, he/she has the right to demand the fulfillment provided he had communicated
with the obligor of his acceptance before its revocation.

Exceptions
These are instances when a contract is effective only between the parties are
when the rights and obligations arising from the contract are not transmissible.
1. By their nature
Ex: Contracts that require personal qualifications

2. By Stipulation
3. By provision of law
Article 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.

The article 1315 refers to the consensual contract in which it is perfected by consent.

Stages of Contract Perfection

1. Preparation or negotiation – this step refers to the prospective parties that took
time to summarize their interest into a contract.

2. Perfection or birth – this step refers to when both parties have agreed to the
contract.

3. Consummation or termination – this step refers to when the parties have fulfilled
their duties and responsibilities.

Article 1316 – Real contracts, such as deposit, pledge and commodatum, are not
perfected until the delivery of the object of the obligation.

The article 1316 refers to real contracts, in which they are perfected through the delivery
of the subject matter of the contract.

Article 1318 – There is no contact unless the following requisites concur:

(1) Consent of the contracting parties
(2) Object certain which is the subject matter of the contract
(3) Cause of the obligation which is established

The article 1318 refers to the requisites of a valid contract, which is consent, object, and
cause.
Article 1320 – An acceptance may be express or implied

The article 1320 refers to the forms of acceptance.

Forms of Acceptance
1. Acceptance by promise – it is acceptance by giving a promise.
2. Acceptance by act – its is acceptance by performance on fulfillment of the
agreement.
3. Acceptance by silence or inaction

Article 1323 – An offer becomes ineffective upon the death, civil interdiction,
insanity, or insolvency of either party before acceptance is conveyed.

The article 1323 refers to offers that become ineffective.

Instances when an offer becomes ineffective

1. Upon the Death
2. Civil Interdiction
3. Insanity
4. Insolvency
5. Formation and validity or enforceability of electronic contracts
6. Recognition by parties of electronic data message or electronic document
7. Attribution of electronic data message
8. Error on electronic data message or electronic document
9. Place of dispatch and receipt of electronic data message or electronic document

Article 1324 – When the offerer has allowed the offerree a certain period to
accept, the offer may be withdrawn at any time before acceptance by
communicating such withdrawal, except when the option is founded upon a
consideration, as something paid or promised.
The article 1324 refers to offers that has been offered within a certain period, it can be
withdrawn any time before the acceptance by communicating said withdrawal, unless it
is an option founded by a consideration, as something paid or promised.

Article 1327 – The following cannot give consent to a contract:

(1) Unemancipated minors
(2) Insane or demented persons, and deaf-mutes who do not know how to
write.

The article 1327 refers to the people that cannot give consent to a contract.

Classes of Voidable Contracts

1. One party is incapable of giving consent
2. The consent of one of the contracting parties has been vitiated, by error, fraud,
violence, intimidation, and undue influence.

Persons incapacitated to give consent

1. Minors
2. Insane
3. Deaf/Mute incapable of giving consent unless they can

Article 1329 – The incapacity declared in Article 1327 is subject to the

modifications determined by law and is understood to be without prejudice to
special disqualifications established in the laws.

The article 1329 refers to the Article 1327 declared to state incapacitated persons to
give consent.

Incompetent Persons
1. A person suffering the accessory penalty of civil interdiction
2. Hospitalized lepers
3. Prodigals
4. Deaf and dumb who are unable to read and write
5. Those who are of unsound mind even though they have lucid intervals
6. Those who, by reason of age, disease, weak mind and other similar causes,
cannot without aid, take care of themselves and manage their property,
becoming thereby an easy prey for deceit and exploitation.