PAGADDUT, FRANKLIN
PAES, LSRRY JESTHONY
ESPERANZA, GODFREY
CUMISA, EFRAIM
Classification of Contracts
1. As to Completion Status
A. Executory
- An obligation is assumed by one or both parties to do or refrain from doing
certain acts at some time in the future
Example: Orlie agrees to sell his collection of VCDs to Mel and Mel agrees to pay
Orlie one box of Sky flakes worth P 200 two days after when the exchange takes
place
B. Executed
Everything is done at the time of making the contract and no obligation for future
acts is assumed by either party.
Example: Orlie agrees to sell his collection of VCDs to Mel. Mel immediately paid
Orlie one box of Sky flakes worth P 200 and Orlie gave his collection to Mel.
2. As to Form
Contract Under Seal
Sealing wax on the document and making a distinctive mark
A. Contract of Record
- Are contracts which exist as a consequence of court judgments
Example:
Mr. Bryan filled a case against the City of Tacloban for dumping garbage on his
land. The City of Tacloban got a court order to pay Bryan P2,000,000 for the
damages caused on his property
B. Simple or Parol Contract
1. Contracts in Specified form
- Promissory notes, bills of exchange.
2. Contracts in Writing
- Insurance policies, membership, last will, etc.
3. Contracts without Specified form or Writing
- Oral contracts
3. As to Legal Status
A. Valid – is one which is in full force enforceable by court action.
B. Void – has no status in law and is therefore not enforceable by court
action.
C. Voidable – a contract w/c is binding to one party but may be binding or
nonbinding to the other party.
D. Unenforceable – is valid in all respect but it is unenforceable through
court action
4. AS TO ORIGIN
A. EXPRESS CONTRACT
- is a bilateral or multilateral contract in which the promises and assent
are expressed in speech or writing.
Example:
Orlie agrees to grade a building lot to Bryan, and Bryan agrees to pay a
sum of Php 20000 when the work is completed.
B. IMPLIED CONTRACT
- is a unilateral contract where either the act of acceptance or both the act
of acceptance and the promise are inferred as a matter of fact from the conduct or
acts of the parties.
Example:
Angela takes her truck to a garage operated by Philip and asks him to find out
what is wrong with the engine and fix it. On examination, Philip finds that the
truck has a cracked cylinder block and a badly worn crankshaft. He replaces
the engine with a new one, and Angela must pay a reasonable price for the
work.
C. QUASI CONTRACT
-is not, strictly speaking, a contract but a legal obligation which is similar
to a contract and which is created by the implication of law.
Example:
An architect, A, is retained by B to prepare plans for the residence which B
expects to build. The first set of plans shows a house which is much too costly
for B to build, so A prepares a second set of plans without further charge
which B uses in building his home. In the meantime, B has shown the first set
of plans to a friend C, who has had them copied and who builds a house
according to the first set of plans.
5. AS TO PARTICIPANTS
TWO-PARTY CONTRACT
-is the most common type on which only two parties are involved
JOINT CONTRACT
- is one which two or more parties merge, to a greater or less extent, their
interests to enter into a contract with another party or parties.
SEVERAL CONTRACT
- is one in which two or more persons enter into a contract as promisors or
promisees but keep their liability more or less separate
JOINT AND SEVERAL CONTRACT
-has some of the nature of each of the two preceding type.
THIRD-PARTY BENEFICIARY CONTRACT
-is one in which two parties enter into a contract for the protection of the
interests of a third person who is not a party to the contract.
6. AS TO OBLIGATION STATUS
BILATERAL CONTRACT
-is one in which one party agrees to perform or refrain from performing
some certain acts in return for which the other party agrees to perform or
refrain from performing certain acts.
UNILATERAL CONTRACT
-is one in which there is a promise by one party to perform certain acts
provided the other party does certain things, the acceptance to be
accomplished by the act.
Types of Contracts
1. Contract at a Fixed Price
- The oldest and most common method of letting work under contract is by
receiving bids with a fixed prices. These may be either Lump Sums or Unit
Prices.
- Contracting on a basis of either a Lump Sum or of Unit Prices is
subject to the objection that the interests of the contractor and of the owner
become at once antagonistic.
2. Contracts for Cost-plus a Percentage
- The most common method has been to pay the contractor the actual cost of
the construction work with a specified percentage thereof as compensation for
his overhead expenses, personal services and profits.
3. Construction by Direct Employment
- The construction of engineering works by direct employment of an
organization independent of any contractor eliminates certain difficulties
often no less serious.
- The responsibility for the construction and for the cost of the work
is placed on an organization which the owner or governmental body must
create for this purpose, and the results will depend largely on the efficiency of
the organization.
