CONTRACTSJardine Davies vs CAA contract is defined as a juridical convention manifested in legal form by virtue of which one or more persons bind themselves in favor of another or others or reciprocally, to the fulfillment of a prestation to give, to do or not to do.

Requisites:Consent-object-consideration

To produce a contract there must be acceptance, which may be express or implied but must not qualify the terms of the offer

Advertisements to bidders are simply invitations to make proposal

Province of Cebu vs Heirs of Rufina MoralesA sale by public auction is perfected when the auctioneer announces its perfection by the fall of the hammer or in other customary manner and it does not matter that another is allowed to match the bid of the highest bidder at the said auction sale

ElementsMeetings of the mindsSubject matterPrice certain in money

ABS CBN VS CAStages of a contract: Preparation-perfection-consummation

Offer must be certain (counter offer)

Ayala Corp. vs Ray BurtonContract of adhesion wherein one party imposes a readymade form of contract on the other are not entirely prohibited. The one who adheres to the contract is in reality free to reject it entirely.

Accorded inordinate vigilance by the court because of their nature

Goldloop Properties vs GSISContract is the law between the parties

Parties may validly stipulate the unilateral rescission of a contract

In cases involving recission under 1191 of the civil code, mutual restitution is required

If it cannot be determined which of the parties first violated the contract, the same shall be deemed extinguished and each shall bear his own damages

De Leon vs OngContract to sell vs Contract of Sales (Distinguish)

Execution of a notarized deed of sale is equivalent to the delivery of the thing sold

The condition is deemed fulfilled when the obligor prevents its fulfillment

Autonomy/Freedom to stipulateAzcuna Jr vs CAThe freedom of the contracting parties to make stipulations in their contract provided they are not contrary to law,morals, etc.

Acol vs PCCIA stipulation in a credit card that the cardholders responsibility for all chargers made through the use of his card shall continue until reasonable time after receipt of card issuer of written notice of loss card rest entirely beyond the control of the cardholder

Piltel vs TecsonA contract of adhesion is just as binding as ordinary contracts even as the courts remain careful in scrutinizing the factual circumstances underlying each case to determine the respective claims of contracting parties

carmelCraft vs NLRCQuitclaims of the workers benefits will not estop them from asserting the same (against public policy)

Manila Bay Club Corp vs CAContract law between the partiesThe trial court had the authority to fix the reasonable value for the continued use and occupancy of the leased premises after the termination of the lease contract.

Allied Banking Corp. vs CAThere must be mutuality between them based essentially on their equality under which it is repugnant to have one party bound by the contract while leaving the other free therefrom

A right of renewal constitutes a part of lessees interest in the land and forms substantial and integral part of the agreement

The fact that an option to renew is binding only to the lessor and can only be exercised by the lessee does not render it void for lack of mutuality ( lessor: option to give or not to give the lease)

Ortigas vs CAA LATER LAW WHICH ABRIDGES ENLARGES OR IN ANY MANNER changes the intent of the parties to the contract necessarily impairs the contract itself and cannot be given retroactive effect without violating the constitutional prohibition against impairment of contract

A law enacted in the exercise of police power to regulate or govern certain activities or transactions could be given retroactive affect and may reasonably impair contracts

Restrictions in a contract of sale limiting all constructions on the subject lot to single-family residential buildings deemed extinguished by the retroactive operation of a zoning ordinance reclassifying the area as a commercial zone

MIAA vs Avia Filipinas InternationalIn construing a contract, the provisions thereof should not be read in isolation but in relation to each other, in its entirety

When the oblige accepts the performance knowing its incompleteness and irregularity and w/o expressing any protest or objection, the obligation is deemed fully complied

The lessor is obliged to maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of the contract

Mutuality of contractsJespajo Realty vs CAArt 1687 of the CC finds no application in the case of a lease contract with a period subject to a resolutory condition

The exercise of the option is as much in the fulfillment of the contract as any other act which may have been the subject of agreement (personal service, resolutory condition)

UCPB vs Sps belusoIn order that obligations arising from contracts may have the force of law between the parties, there must be mutuality between the parties based on their essential equalityEstoppel cannot be predicated on an illegal act

PNB vs CAA contract containing a condition which makes its fulfillment dependent exclusively upon the uncontrolled will of one of the contracting parties is void

Serra vs CAIn a unilateral promise to sell,where the debtor fails to withdraw the former before the acceptance by the creditor the transaction becomes bilateral contract to sell and buy and the parties may reciprocally demand performance

Philiipines bank vs IACAutomatic rescission cannot be availed of where there is a clear waiver of stipulated right of automatic rescission as evidence by many extensions granted to private respondents

PSB vs Sps CastilloContract changes must be with consent of the contracting parties

Escalating clauses are generally valid and do not contravene public policy

Integrated PACKAGING Corp vs CAPrinciple of relativity of contracts provides that contracts can only bind the parties who entered into it and it cannot favor a third person even if he is aware of such contract and acted with knowledge thereof