05/09/2025
For today’s, “LAWntawon ta ang Balaod!”
Understanding Contracts under Philippine Civil Law
Under Article 1305 of the Civil Code of the Philippines, a contract is defined as a meeting of minds between two parties, whereby one obligates himself to give or render a service to another.
For a contract to be considered valid, Article 1318 provides three essential requisites:
(1) the consent of the contracting parties, which must be freely given without fraud, violence, or intimidation;
(2) a certain object (the subject matter), which must be specific, lawful, and clearly identifiable; and
(3) a lawful cause or consideration that constitutes the reason or purpose behind the obligation.
Although verbal agreements may be binding, the ex*****on of a written contract is strongly preferred. A written contract serves as a tangible and reliable reference that outlines the terms of the agreement, thereby preventing disputes and minimizing the risk of misunderstandings.
In essence, written and notarized contracts not only embody the essential elements required under the law but also establish a clear, enforceable, and equitable framework that protects the rights and interests of all parties involved.
