Contracts
Contracts
Contracts
1347-1349
KRIS ZALDIVAR
CAUSE DEFINED
IT IS THE ESSENTIAL AND IMPELLING
REASON WHY A PARTY ASSUMES AN
OBLIGATION. STRICTLY SPEAKING, THERE IS
NO CAUSE OF A CONTRACT, BUT THERE IS
A CAUSE FOR AN OBLIGATION.
1. It must be present
2. It must be true
3. It must be lawful
• Onerous contracts – here the cause is, for each
contracting party, the prestation or promise of a thing or
service by the other. One example is contract of sale.
• Remunatory contracts – the past service or benefit
which by itself is a recoverable debt.
• Gratuitous (or contracts of pure beneficence) – here
the cause is the mere liability of the benefactor. Example
is pure donation.
EXAMPLE: