CONTRACTS (Week 11-14)

• Concept
• Classifications
• Requisites

Atty. Maria Almira L. Fandialan - Saniano

 CONTRACT
 Meeting of the minds between
two persons whereby one binds
himself, with respect to the
other to give something or to
render some service.
(Art. 1305, NCC)
Meeting of the Minds

 Speaks of intent of the parties in entering

into the contract respecting the subject
matter and consideration thereof;

 As a rule, a contract is perfected by mere

consent. It does not require any special
form;

 Thus, meeting of the minds gives rise to a

binding contract although parties have not
affixed their signatures.
 CLASSIFICATION OF CONTRACTS
A. According to degree of dependence:

1. Principal – Can exist independently of other

contracts. (Ex. Contract of Loan)

2. Accessory – Cannot exist without a valid

principal contract; exist merely to secure the
fulfillment of a principal obligation.
(Ex. Mortgage)

3. Preparatory – Only a means for the execution

of another contract. (Ex. Contract of Agency –
purpose of agency is to enter into other
contract, like a sale)
 CLASSIFICATION OF CONTRACTS
B. According to Manner of Perfection:

1. Consensual – Perfected by mere consent.

(Ex. Sale of Goods)

2. Real - Perfected not by mere consent, but by

delivery of the object of the contract.
(Ex. Commodatum)

Commodatum - Commodatum refers to a

gratuitous loan of a movable property which is to
be returned undamaged to the lender. (Ex. A
borrowed the car of his friend, B. Hence, A has to
return B’s car as is, without damage)
CLASSIFICATION OF CONTRACTS

C. According to Nature of Obligation Produced:

1. Bilateral – Creates obligations on both sides

or both parties. (Ex. Sale – Deliver & Pay)

2. Unilateral - Creates obligations only on one

side or only one of the contracting parties.
(Ex. Commodatum – gratuitous)
 CLASSIFICATION OF CONTRACTS
D. According to Cause (Reason for action / doing):

1. Onerous – Cause is the prestation or promise of a

thing or service by the other; imposing an obligation.
(Ex. Sale)

2. Remuneratory – Cause is the service or benefit for

which the remuneration is given. (Ex. A took case of
B when the latter was sick, later on, B donated a
parcel of land to A – not a demandable debt, but a
remuneratory donation)

3. Gratuitous – Cause is mere liberality (kabutihang

loob) of the benefactor (Ex. Commodatum)
 CLASSIFICATION OF CONTRACTS

E. According to Form or Solemnity

1. Common – Does not require any form,

provided all essential requisites for validity
are present. (Ex. Sale of food)

2. Special or Solemn – Requires certain

formalities for validity or enforceability.
(Ex. Donation of real property must be in a
public instrument)
CLASSIFICATION OF CONTRACTS

F. According to Purpose:

1. To transfer ownership – Sale

2. To convey the use – Commodatum

3. To give security – Mortgage

4. To render some service - Agency

CLASSIFICATION OF CONTRACTS

F. According to Subject Matter

1. Things – Sale / Mortgage

2. Services – Agency

3. Rights – Not personal or

intransmissible.