Art. 1347. OBJECTS OF CONTRACTS

It is to create or end an obligation which in turn, may involve things or services. Requisites:

o Must be within the commerce of mano Must be transmissibleo Must not be contrary to law, morals, good customs, public order, or public policy

Future things may be the object of a contract Future inheritance cannot be the subject of a contract except:

In the case of marriage settlements In the case of partitions of property inter vivos by the deceased

o Must not be impossibleo Must be determinate as to its kind or determinable without the need of a new contract

or agreement

Art. 1348. IMPOSSIBLE THINGS OR SERVICES

Impossibility maybe:o Because of the nature of the transaction or because of the lawo Absolute (objectively impossible)o Relative (subjectively impossible)

Impossibility must not be confused from mere difficulty

Art. 1349. DETERMINATE OBJECT OF A CONTRACT

The object must be determinate or determinable If it is not, then the contract is void for want of an essential requisite

Art. 1350. CAUSE OF CONTRACTS

It is the essential and impelling reason why a party assumes an obligation. There is no cause of a contract, but there is a cause for an obligation. Case vs. Subject Matter

o The difference is only a matter of viewpoint.o What maybe the subject matter for one party will be the cause or consideration for the

other party.o In reciprocal contracts, the subject matter for one is the cause for the other, and vice

versa. Classification of contract as to CAUSE

o Onerous – here, the cause is, for each contracting party, the prestation or promise of a thing or service by the other. (ex. Contract of sale)

o Remuneratory – the past service or benefit which by itself is a recoverable debt.o Gratuitous- here, the cause is the mere liability of the benefactor.

Cause in accessory contracts like mortgage and pledgeo The cause is the same as the cause for the principal contract of a loan.

Art. 1351. MOTIVES OF THE PARTIES

Motives do not enter at all in the validity or invalidity of cause of consideration Motive vs. Cause

o Motive may vary although he enters into the same kind of contract; the cause is always the same

o Motive maybe unknown to the other; the cause is always knowno Presence of motive cannot cure the absence of cause

Illegal cause vs. Illegal motiveo Illegal cause makes the contract voido Illegal motive does not necessarily render the transaction void

Art. 1352. REQUISITES FOR CAUSE

Requisites:o It must be presento It must be trueo It must be lawful

It there is no cause whatsoever, the contract is VOID. The cause must exist at the time of the perfection of the contract and not later If the cause is false, the contract is not valid unless some other cause which is lawful really exists Lawful cause:

o It the cause is unlawful, the transaction is null and void.o If a person claims that some parts of a contact is illegal but the rest are valid, he has the

burden of showing which parts are supported by a lawful cause; otherwise, the whole contract shall be considered VOID.

o While an absolutely simulated contract can have no effect, a contract with an illegal cause may produce effects under certain circumstances where the parties are not of equal guilt.

Effect if cause is illegalo If one party is innocent he cannot be compelled to perform his obligation, and he may

recover what he has already given.o It both parties are guilty, neither can sue the other

Art. 1353. STATEMENT OF A FALSE CAUSE

Statement of a false cause does not necessarily mean the contract is voido Reason: The parties are given a chance to show that a cause really exists, and that said

cause is true and lawful.o Contract is only revocable or voidable

Art. 1354. PRESUMPTION THAT CAUSE EXISTS

It is necessary that the cause exist, but it is not necessary to state the cause in the contract.o Reason: It is presumed that the cause exists and is lawful unless proven by wrong by the

debtor

Art. 1335. LESION

It is inadequacy of cause, like an insufficient price for a thing sold Rules:

o It does not invalidate a contract Exceptions:

o When together with lesion, there has been: Fraud Mistake Or undue influence

o In cases extremely provided by law (contract may be rescinded) Art. 1381, par. 1 of the CC Art. 1381, par. 2 of the CC Art. 1098 of the CC

Lesion may be evidence of the presence of fraud, mistake or undue influence.