Page 52 - Obligations & Contracts Module 1-2

*SIMULATED CONTRACTS

a. absolute – no intention to be bound at all, fictitious only – void from beginning

b. relative – there is intention to be bound but concealed; concealed contract binds:

1. no prejudice to 3rd persons

2. not contrary to law, morals, etc.

*ESSENTIAL ELEMENTS CONTRACT:

1. CONSENT – meeting of minds between parties on subject matter & cause of contract;

concurrence of offer & acceptance

2. OBJECT – The prestation

Requisites:

a) Within the commerce of man - either existing or in potency

b) Licit or not contrary to law, good customs

c) Possible

d) Determinate as to its kind or determinable w/o need to enter into a new contract

e) Transmissible

3. CAUSA – reason why parties enter into contract

Requisites:

a) It must exist

b) It must be true

c) It must be licit

*MOTIVE - purely private reason; illegality does not invalidate contract except when it

predetermines purpose of contract; when merged into one