Article 1316 Real contracts, such as deposit, pledge and date of commo date, are made perfect only when the object of the contract is delivered. Article 1317 No one may contract on behalf of another person without his authorization to do so or if he does not have the legal right to represent him. Note: There can be no ratification if the treaty has already been revoked by the other party. The contract must not be contrary to morality. Morality deals with the standards of good and right behavior developed in a community. These standards can be different at different times, places and with each group of people. Ex. A contract without the benefit of marriage for a sum of money is immoral. “Since the contract of sale is consensual, the Court of Justice, in Buenaventura v. The Court of Appeal stated: When Anne (an employer) hires Bryan (an employee), a contract begins as soon as the two have agreed on the terms and conditions of employment.
Article 1313 Creditors are protected by contracts designed to deceive them. Facts: Charvet Singson purchased two parcels of land in the Camel Homes subdivision, which are covered by certificates of title mentioning certain restrictions on the use of the property, one of which was that the land was for residential use only. Mekeni Villar, the owner of the subdivision, filed a lawsuit to prevent Charbet`s construction of a commercial building on the grounds that it violated the restrictions of the title. Charbet purchased the land two years after the area was declared a commercial and industrial zone by a city council resolution. Mekeni Villar invoked the principle of non-interference with contracts, arguing that the Decision could not annul the contractual obligations assumed by Charbet Singson, by referring to the restrictions contained in the sales contracts and, subsequently, in the corresponding certificates of transfer of ownership issued to it. Example: If Leah hands over a property to Piolo free of charge, these creditors can demand the termination of the contract if they have suffered a disadvantage. In this case, Anne is obliged to return the horse the next day as expressly provided for in the contract. Anne is also obliged to take care of the horse until delivery and to guarantee that he has the right to sell the horse, although the contract says nothing about the obligation, as this is in accordance with good faith, customs and laws.
In the case of real contracts, the delivery of the object is necessary because without the object, the other party cannot fulfill its obligations under the contract. After agreeing to sell her property to Kokey, Princess Sarah sells the land to Cedie instead at Heidi`s instigation. In this case, Kokey can sue Heidi for damages. However, Heidi`s liability for damages cannot be higher than Princess Sarah`s for her breach of contract. To hold Heidi liable for damages beyond those that can be claimed against Princess Sarah “would lead to an outcome that is both grotesque and unjust.” Heidi would at best be jointly and severally liable with Princess Sarah. Where does Heidi`s commitment come from? Their responsibility will be based on the theory of quasi-crime. The liability of two or more persons responsible for a quasi-act is solidary. The right to enter into contracts is one of the freedoms guaranteed to individuals by the Constitution. This also means or implies the right to choose with whom you want to enter into a contract.
The Constitution prohibits the enactment of laws that interfere with debt contracts. (Article III, paragraph 10) However, the constitutional prohibition on interfering with contractual obligations applies only to legally valid contracts. In appropriate cases, it cannot be invoked against the right of the State to exercise its police power. The Treaty must not be contrary to public policy. Public order refers primarily to public safety, although it also means the public good (welfare). Ex. A treaty that legalizes adultery or cohabitation. This article distinguishes between a contract perfected by consent and a consensual or ordinary contract. A real contract is one that cannot be perfected without delivery, such as Commodatum, deposit and loan. Liability of the third party responsible for breach of contract.
“It is not the payment of the price that determines the validity of a purchase contract. The payment of the price has nothing to do with the perfection of the contract. The payment of the price is part of the execution of the contract. Non-payment of consideration is different from no consideration. The former gives rise to a right to demand performance or avoidance of the obligation arising from an existing valid contract, while the latter prevents the existence of a valid contract. This article emphasizes the reciprocity of contracts, that is, the two parties are linked.