Page 45 - Obligations & Contracts Module 1-2

Module 2: CONTRACTS

A Contract is a meeting of minds between two (2) parties whereby one binds

himself with respect to other to give something or render some service.

PRINCIPAL CHARACTERISTICS:

1. Autonomy of wills – parties may stipulate anything as long as not illegal, immoral, etc.

2. Mutuality – performance or validity binds both parties; not left to will of one of parties

3. Obligatory Force – parties are bound from perfection of contract:

a. fulfill what has been expressly stipulated

b. all consequences w/c may be in keeping with good faith, usage & law

4. Relativity – binding only between the parties, their assigns, heirs; strangers cannot

demand enforcement

EXCEPTION TO RELATIVITY:

a. Accion pauliana

b. Accion directa

c. Stipulation pour autrui