Art 1311

Art 1311.
Contracts take effect only

between the parties, their assigns and
heirs, except in case where the rights
and
obligations arising from the contracts
are not transmissible by their nature,
or by stipulation or by provision of
Art 1311. Contracts take effect only
between the parties, their assigns and
heirs, except in case where the rights
and
obligations arising from the contracts
are not transmissible by their nature,
or by stipulation or by provision of
Art 1311. Contracts take effect only between the parties, their assigns and heirs, except in case where
the rights and obligations arising from the contracts are not transmissible by their nature, or by
stipulation or by provision of law. The heir is not liable beyond the value of the property he received
from the decedent.
If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment
provided he communicated his acceptance to the obligor before its revocation. A mere incidental
benefit or interest of a person is not sufficient. The contracting parties must have clearly and
deliberately conferred a favor upon a third person.
• 1st paragraph of this article embodies the Principle of Relativity of Contract
• Four exceptional instances where a contract may produce effect on third persons (stipulation pour
autrui): Art. 1311, par.2 – 1314
* Parties bound by contract:
Generally, only the parties that agreed on the contracts are bound by the contract. Transmission is
possible to the heirs or assignees if so stipulated and in certain contracts.
* Third persons not bound:
It is a general rule that third parties are not bound by the acts of another.
A contract cannot be binding upon and cannot be enforced against one who is not a party to it, even if
he has knowledge of such contract and has acted with knowledge thereof.
* Enforcement of contract:
Only a party to the contract can maintain an action to enforce the obligations arising under said
contract.
* Contracts bind heirs:
Rights and obligations under a contract are transmissible to heirs. Heirs are not third persons because
there is privity of interest between them and their predecessor
Stipulation pour autrui
French term meaning
stipulation for others
or stipulation in favour of other parties

It is a stipulation in a contract clearly and deliberately conferring a benefit upon a third person who has
the rightto demand its fulfilment, provided he communicated his acceptance of the benefit to the
obligor before itsrevocation by the obligee or the original parties.
It is also an exception to the general rule of relativity, one of the characteristics of a contract, stating
thatcontracts take effect only between parties, their assigns and heirs. (Civil Code, Art. 1311)
Requisites of a Stipulation pour autrui
1.
There must be a stipulation in favour of a third person;2 classes of stipulations in favour of a third
person:a.
Those where the stipulation is intended for the sole benefit of such person;b.
Those where an obligation is due from the promise to the third person which the former seeks
todischarge by means of such stipulation, such as where a transfer of property is coupled with
thepurchas
er’s promise to pay a debt owing from the seller to a third person
.2.
The stipulation is a part, not the whole of the contract;3.
The contracting parties clearly and deliberately conferred a favour to the third person
–
the favour is not anincidental benefit;4.
The favour is unconditional and uncompensated; That the favourable stipulation should not be
conditioned orcompensated by any kind of obligation whatsoever5.
The third person communicated his or her acceptance of the favour before its revocation by the original
parties;6.

The contracting parties do not represent, or are not authorized by, the third party.Example:Benito
leased his house to Procopia for 2 years at an agreed rental of P10, 000.00 a month. They stipulated
thatthe P10000 monthly rental should be given to Celso, a godson of Benito, as his monthly allowance.
Celsocommunicated his acceptance of the benefit to Abel, the debtor, before Benito could revoke the
same.The stipulation in the contract between Benito and Procopia expressly granting a benefit to Celso
who acceptsthe same is known as stipulation pour autrui

Art 1311

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Art 1311.

Contracts take effect only

• 1st paragraph of this article embodies the Principle of Relativity of Contract

* Parties bound by contract:

* Contracts bind heirs:

Stipulation pour autrui

French term meaning

stipulation for others

or stipulation in favour of other parties

Requisites of a Stipulation pour autrui

The stipulation is a part, not the whole of the contract;3.

the favour is not anincidental benefit;4.

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