SECTION 2. OBJECT OF CONTRACTS c.

) The object should be licit, in other words, it should not

be contrary to law, morals, good customs, public order
Article 1347. All things which are not outside the commerce of or public policy;
men, including future things, may be the object of a contract. d.) The object must be transmissible;
All rights which are not intransmissible may also be the object e.) The object should be determinate, or at least, possible
of contracts. of determination as to its kind. The fact that the quantity
is not determinate shall not be an obstacle to the
No contract may be entered into upon future inheritance except existence of the contract, provided it is possible to
in cases expressly authorized by law. determine the same, without the need of a new contract
between the parties. (Article 1349)
All services which are not contrary to law, morals, good
customs, public order or public policy may likewise be the Things, rights, or services that cannot be the object of
object of a contract. contracts:
a.) Things which are outside the commerce of men,
Object of Contracts, defined including future things;
The object of a contract may be defined as the thing, right, or b.) Rights which are intransmissible;
service which is the subject matter of the obligation which is c.) Future inheritance except in cases expressly authorized
created or established. by law;
d.) Services which are contrary to law, morals, good
Requisites of an object: customs, public order or public policy (Article 1347);
As a general rule, all things, rights, or services may be the e.) Impossible things or services (Article 1348);
object of contracts. It is, however, essential that the following f.) Objects which are not determinate as to their kind
requisites must concur: (Article 1349). If the parties enter into a contract with
a.) The object should be within the commerce of men, in respect to the above contracts, the contract is void or
other words, it should be susceptible of appropriation inexistent.
and transmissible from one person to another;
b.) The object should be real and possible; in other words, Article 1348. Impossible things or services cannot be the
it should exist at the moment of the celebration of the object of contracts. (1272)
contract, or at least, it can exist subsequently or in the
future; Things are impossible when:
1. Things are not susceptible for existence.
2. Things are outside the commerce of man.
 3. Personal services are beyond the physical strength or Difficulty of Performance
power of man to perform. When there is a mere difficulty or great inconvenience to
comply with an obligation that is not impossibility. A party who
committed himself to do a difficult obligation is not relieved from
Absolute or Objective Relative or Subjective his responsibility even if he would suffer inconvenience or
Impossibility Impossibility increased expenses in the fulfillment thereof.
Nobody can perform it Due to the special conditions
or qualifications of the debtor, Article 1349. The object of every contract must be determinate
it cannot be performed. as to its kind. The fact that the quantity is not determinate shall
Nullifies the contract If temporary, does not nullify not be an obstacle to the existence of the contract, provided it
the contract. If permanent, is possible to determine the same, without the need of a new
nullifies the contract. contract between parties.

Liability for Damages Determination of Quantity

If the thing or service is impossible, there is no contract. Can Once the object is determinate or a specific thing, no need for
there be any claim for damages against the debtor if the creditor a new or further agreement between the parties, but when the
incurred actual damages? The answer is, it depends. If both obligation consists in the delivery of a generic or indeterminate
parties are fully aware of the impossibility of the thing or service, thing, whose quality and circumstances have not been stated,
there is no liability for damages because both the debtor and Article 1246 governs.
creditor are considered in bad faith. If the debtor knew of the
impossibility or could have known it by exercising ordinary Examples:
diligence, he is liable for damages because he is in bad faith or
is negligent. But if the debtor is ignorant of the impossibility, and Mr. X binds himself to deliver one of his elephants to Mr. Y, the
his ignorance is justifiable or unavoidable, he cannot be held object is determinable without the need of a new contract
liable for the damages suffered by the creditor. between the parties and it becomes determinate the moment it
is delivered.
Partly Impossible
The divisibility of the thing or service will determine whether the
partially possible and partially impossible thing or service will If the subject matter of the agreement is a parcel of agricultural
be void or valid. land owned by X and X happens to own many agricultural
lands, the contract is void, if the particular land sold cannot be
determined without a new or further agreement between the Mutual promise as a cause – a promise made by one party in
parties. accordance with the forms required by law, may be a good
cause or consideration.
SECTION 3. CAUSE OF CONTRACTS
Accessory contracts – here the performance of another’s
contract has been secured by other person either by acting as
Article 1350. In onerous contracts the cause is understood to a surety of bond or by giving his property by way of mortgage
be, for each contracting party the prestation or promise of a to secure such other person’s contract.
thing or service by the other; in remuneratory ones, the service
or benefit which remunerated; and in contracts of pure The cause here is pure beneficence.
beneficence, the mere liberality of the benefactor. Beneficence- the act of doing good.

Onerous Contracts – a contract in which the aggregate cost Article 1351. The particular motives of the parties in entering
required to fulfill the agreement is higher than the economic into a contract are different from the cause thereof. (n)
benefit to be obtained from it.
Motive and Causes, Difference
In this type of contract, something is given or promised as a The cause of a contract is the objective and juridical reason
consideration for the engagement or gift, or some service, for the establishment of a contract and is always the same.
interest, or condition is imposed on what is given or promised, while motive is the psychological or personal purpose of a
although unequal to it in value. party in getting the object and differs with each person. Each
party may have his own personal reasons or motives in
Now, the cause here is deemed for both parties in good faith. entering into a contract. Motive or even with illegal motives
does not affect the validity of the contract.
Remuneratory Contract - is one where a party gives
something to another because some service or benefit given or Exception: If the motive predetermines the purpose of the
rendered by the latter to the former. contract, motive may be regarded as cause.

Note that such service or benefit is not due to legal obligations.

Gratuitous Contracts – are essentially agreements to give

donations. Generosity or liberty is the cause of such contracts.