Art.1305 Contracts is a meeting of minds between two persons whereby bind themselves with respect to the other to give something, or to render some services.
- All agreement between parties are binding provided that is not contrary to law, public customs, public policies and morals.
- Constitutional limitations – no law shall be pass impairing the law of obligations and contracts.
- Agreement in restraint of trade is void because this is against public policy.
- Interest per annum of 66% or 5.5% per month is void.
Essential Elements of Contract:
- Delivery – there is no perfected contract without delivery in real contract
*Absent of one of the elements, the contract is void.
Kinds of Contract:
Consensual – mere consent. Ex. Contract of sale, agency and partnership
Principal – can stand alone.
Accessory – depend upon the existence of another contract.They cannot exist without the principal contract. Ex. Mortgage, Pledge.
Preparatory – ex. Partnership – beginning contract to enter other contract.
Unilateral – only one party has obligation.
Bilateral – both party has obligation.
Nominate – contract has a name.
Innominate contract – no name given by law.