v. Obligatory Force

Obligatoriness

Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (CIVIL CODE, art. 1159)

CHARACTERISTICS OF A CONTRACT

Contracts have the following characteristics:

• Autonomy (NCC, Art. 1306);
• Mutuality (NCC, Art. 1308);
• Obligatoriness (NCC, Art. 1159);
• Relativity (NCC, Art. 1311); and
• Consensuality (NCC, Art. 1315).

OBLIGATORY FORCE OF CONTRACT

Obligations arising from contracts have the force of law between the parties and must be performed in good faith (NCC, Art. 1159).

A contract must bind both parties. Its validity or compliance cannot depend on the will of only one of them (NCC, Art. 1308).

A contract is perfected by mere consent. From that moment, the parties are bound to fulfill not only its express terms but also the consequences that, according to its nature, are in keeping with good faith, usage, and law (NCC, Art. 1315).

A contract is obligatory regardless of the form in which it was entered into, provided all the essential requisites for its validity are present (NCC, Art. 1356).

Requisites for the Application of the Principle

Before a contract may be considered obligatory, it is necessary that:

• It is perfected;
• It is valid; and
• It is enforceable. (Rabuya, 2017)