RFBT ten - LAW ON CONTRACTS - CLEAN TTS COPY
RFBT ten - LAW ON CONTRACTS - CLEAN TTS COPY
Definition, Stages, and Elements
A contract is a meeting of minds between persons where one binds himself with respect to the other to give or render something. Stages are negotiation, perfection, and consummation.
Elements may be essential, natural, or accidental. Essential elements are those without which the contract cannot exist. Natural elements are found in certain contracts, such as warranty. Accidental elements are particular stipulations, such as a payment term.
General contract: consent, object, and cause, or COC. Real contract: COC plus delivery. Formal contract: COC plus the required form.
General Principles and Relativity
General Principles and Relativity
Consensuality: contracts are generally perfected by mere meeting of minds. Mutuality: validity or compliance cannot be left to one party's will. Autonomy: parties have freedom to stipulate. Obligatory force: contractual obligations have the force of law. Relativity: contracts bind parties, assigns, and heirs; heirs are liable only to the extent of inherited property.
Exceptions to relativity may arise from law, stipulation, or nature. The notes identify contracts with real rights, stipulation pour autrui, contracts to defraud creditors, and tort interference as situations involving third persons.