Citation: 739 SCRA 735 Contracts serve as binding agreements between parties, outlining rights, obligations, and conditions . The Supreme Court has established key doctrines governing contract interpretation, ensuring clarity, fairness, and adherence to legal standards . Definition and Legal Requisites of a Contract 📌 Definition ✔ A contract is a meeting of minds between two persons where one binds himself to give something or render a service (Article 1305, New Civil Code). 📌 Essential Requisites (Article 1318, New Civil Code) ✔ Consent – Agreement between contracting parties. ✔ Object Certain – Clear subject matter of the contract. ✔ Cause – The obligation that creates rights between the parties. Stages in Contract Formation Contracts pass through three distinct phases : 📌 Preparation (Negotiation Phase) ✔ Parties express interest and negotiate terms , culminating in an agreement. 📌 Perfection (Birth of the Contract) ✔ When parties agree upon all essential...
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