What is a contract? What is its nature and effects?
A contract is a meeting of minds between two persons whereby one binds himself with respect to the other, to give something or to render some service. (Article 1305, Civil Code of the Philippines)
There is no contract unless the following requisites concur: (1) consent of the contracting parties, (2) object certain which is the subject matter of the contract, and (3) cause of the obligation which is established. (Article 1318, Civil Code)
Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to the consequences which according to their nature, may be in keeping with good faith, usage and law. (Article 1315, Civil Code)
A contract is an agreement, written or not, between persons whereby they bind themselves to give, to do or not to do something. It may be for free or gratuitous as in donations or it could be for a price like in sales.
The perfection of a contract means that parties are already expected to perform their part of the bargain. Perfection takes place when all the essential elements (stated in Article 1318) are present. Most contracts are perfected by mere consent, or from the moment there is an agreement as to the subject matter and the consideration for the contract. For example in a contract of sale, it is perfected from the moment the seller and the buyer agree that the buyer will take a particular item in exchange for a certain price. Some contracts, however, require delivery of the object of the contract (e.g. property) before it is perfected, like in a contract of deposit or pledge. pinoylegal