Contracts are an essential part of our daily lives as we enter into agreements with others for various reasons. Every contract has its unique terms and conditions that must be adhered to by all parties involved. In the legal world, a contract is defined as a legally binding agreement between two or more parties, which creates an obligation to perform a specific duty or duties. The law that governs contracts in the Philippines is known as the Law on Obligations and Contracts (Oblicon). This article will delve into the kinds of contracts governed by Oblicon.
1. Express Contracts
Express contracts are the most common type of contract. These contracts are explicitly stated in writing or verbally between the parties involved. The terms and conditions of the agreement are explicitly stated, either through a formal agreement or through a series of emails and correspondence. An express contract must be clear and specific to avoid any confusion or misunderstandings.
2. Implied Contracts
Implied contracts are contracts formed from the conduct of the parties involved. In this type of contract, the agreement is not explicitly stated in writing or verbally, but the parties’ actions indicate their intention to enter into an agreement. Implied contracts may arise in situations where one party provides goods or services, and the other party accepts and uses them.
3. Unilateral Contracts
A unilateral contract is formed when one party makes a promise that the other party can accept only by performing a particular task or action. The offeror specifies what is required of the offeree to accept the offer. For example, an employer may offer a bonus to employees who meet a specific quota or achieve certain results. The contract is formed only when the offeree performs the action specified.
4. Bilateral Contracts
Bilateral contracts are the most common type of contract. Both parties involved in the contract exchange promises to perform a specific action or task. For example, a homeowner may contract with a contractor to build a new house. The homeowner promises to pay for the construction, while the contractor promises to build the house according to specific specifications.
5. Adhesion Contracts
An adhesion contract is a contract where one party has more bargaining power than the other. The terms of the contract are usually non-negotiable, with the weaker party simply accepting the terms or rejecting the offer altogether. Examples of adhesion contracts include insurance contracts and leasing agreements.
In conclusion, having a basic understanding of the kinds of contracts governed by Oblicon is essential for anyone entering into an agreement. It is crucial to ensure that all parties involved understand the terms and conditions of the contract to avoid any legal disputes in the future. As a professional, it is vital to incorporate relevant keywords in articles on legal topics to reach the target audience. Therefore, important keywords to include in this article on kinds of contracts oblicon include contract law, express contracts, implied contracts, unilateral contracts, bilateral contracts, and adhesion contracts.