Page 54 - Obligations & Contracts Module 1-2

4. FORM – in some kind of contracts only as contracts are generally consensual; form is a

manner in which a contract is executed or manifested

a. Informal – may be entered into whatever form as long as there is consent, object &

cause

b. Formal – required by law to be in certain specified form such as: donation of real

property, stipulation to pay interest, transfer of large cattle, sale of land

thru agent, contract of partnership, registration of chattel mortgage,

donation of personal prop in excess of 5,000

c. Real – creation of real rights over immovable prop – must be written

*WHEN FORM IS IMPORTANT:

1) for validity (formal/solemn contracts)

2) for enforceability (statute of frauds)

3) for convenience

*General Rule: contract is valid & binding provided that 3 essential requisites concur

Exception:

a. Law requires contract to be valid - donation & acceptance of real property

b. Law requires contract to be in some form to be enforceable

- Statute of Frauds; contract is valid but right to enforce cannot be exercised;

- need ratification or confirmation to be enforceable