Obligations and Contracts - Domingo Answers
Obligations and Contracts - Domingo Answers
Obligations and Contracts - Domingo Answers
I. Definitions
a. Contract – according to Art. 1305, a contract is a meeting of the minds between two
persons whereby one binds himself, with respect to the other, to give something or to
render some service.
b. Stipulation pour autrui – is a stipulation in a contract clearly and deliberately conferring a
favor upon a third person who has a right to demand its fulfilment provided he
communicates his acceptance to the obligor before its revocation by the obligee or the
original parties.
c. Real contract – are contracts perfected not merely by consent but by the delivery, actual
or constructive, of the object of the obligation (Art. 1316). They are purposely made for
restitution because they contemplate the return of what has been received from another.
d. Perfection of a contract – this is when the parties involved have come to a definite
agreement or meeting of the minds regarding the subject matter and cause of the contract
upon the concurrence of the essential elements thereof.
II. Discussions
The parties who came to an agreement on the subject matter with valid
consideration are bound to the fulfilment of what has been expressly stipulated
and to all the possible consequences which according to their nature, may be in
the keeping with good faith, usage and law.
III. Problems
Explain or state briefly the rule or reason for your answer.
1. A and B entered into a contract not specifically provided in the civil code. Is the
contract valid and binding?
The contract is invalid because in the general provisions of the Civil Code
of the Philippines, a contract is only deemed valid if it possesses the three key
elements which is consent, object and the cause. Since the contract is not
specifically provided in the Civil Code of the Philippines, it is assumed that the
contract entered into by A and B is contradictory to the law and is therefore
invalid and unbinding. It may be safe but there could be differences in the
contract entered into by A and B.
2. S (seller) and B (Buyer) entered into a contract of sale. It was agreed that the
price shall be determined by T, a third person. Can S or B refuse to be bound by
T’s determination of the price if he does not agree with the amount thereof?