LAW ON CONTRACTS NOTES

GENERAL PROVISIONS ART. 1306-1308 MASTERMINDCPA

ART. 1306. [Autonomy of Contracts] 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, or public policty.
Iyong mga parties na gumagawa ng contracts ang nag-se-set ng usapan o agreement o stipulation para sa
kontrata nila basta ba hindi ito against sa civil code.
Principle of autonomy of contracts – the freedom of contract is not absolute. Meaning, hindi lahat ng
gusto mo pwede mo ilagay sa contracts. Wag kang desisyon! Meron ding force of law between the two parties
once magawa ‘yung contract. Kapag na-perfect na ‘yung contract, kailangan mong gawin ‘yung obligasyon mo at
pati ‘yung mga consequence ng kontrata na ‘yon.
Public policy – Mga batas o policies na napapatupad ng state para magkaroon ng social and general
welfare (kaayusan) sa mga tao.

ART. 1307. [Innominate contracts] Innominate contracts shall be regulated by the stipulations of the
parties, by the provisions of Titles I and II of this Book (Obligations and Contracts), by the rules
governing the most analogou nomiante contracts, and by the customs of the place.
Nominate – may provisions ng law
Innominate – walang special provisions
Kinds of innominate contract
1. Do ut des – I give that you give.
2. Do ut facias – I give what you do.
3. Facio ut des – I do that you give.
4. Facio ut facias – I do that you do.
Rules on innominate contracts
1. Stipulation of the parties.
2. The provisions of the Civil Code on obligations and contracts.
3. The rules governing the most analogous nominate contracts.
4. The customs of the place.

ART. 1308. [MUTUALITY OF CONTRACTS] The contract must bind both contracting parties; its validity
or compliance cannot be left to the will of one of them.
Nagkakaroon ng force of law between the two parties once na magawa ‘yung contract. Nagkakaroon na ng
tie between the parties. Exception is the Art. 1266 of the Civil Code, which is mawawalan na ng obligation si debtor
sa oras na maging impossible gawin ‘yung prestation nang wala siyang kasalanan.
Ang purpose ng mutuality principle ay para maging void ‘yung mga contract na hindi valid ang compliance
o hindi nasa control ng debtor kung magagawa niya ba ‘yung obligation.

References: Obligations and Contracts (2020) by Atty. Andrix D. Domingo, CPA, MBA