When it comes to drafting a contract in the Philippines, it is crucial to ensure that all necessary elements are included to make it binding and enforceable by law. As a professional, I have compiled a list of essential requisites that should be present in any contract in the Philippines to help guide you in drafting an effective agreement.
1. Offer and Acceptance
One of the primary elements of a contract is the offer and acceptance. This means that there should be an offer made by one party and accepted by the other. The offer should be specific and clearly stated, while the acceptance should be unambiguous and absolute.
Consideration is something of value that is exchanged between parties in a contract. It can be money, goods, or services, and it is necessary to make a contract legally binding. Without consideration, the contract is considered a gift, and it is not enforceable.
3. Capacity to Contract
Both parties entering into a contract should have the capacity to do so. This means that they should be of legal age, have the mental capacity to understand the terms of the contract, and not be under any duress or coercion to enter into the agreement.
4. Lawful Object
The purpose of the contract should be lawful and not against public policy. For instance, a contract that involves illegal activities, such as the sale of illegal drugs, is not enforceable.
Both parties should fully understand the terms of the contract and consent to them. This means that there should be no mistake, fraud, undue influence, or misrepresentation involved in the negotiation and execution of the contract.
Contracts in the Philippines can be oral or written. However, if the contract involves real estate or is worth more than Php 500,000, it must be in writing to be enforceable.
Finally, it is necessary for both parties to sign the contract to make it legally binding. The signatures should be on the same document and should be witnessed by at least two disinterested parties.
In conclusion, drafting a contract in the Philippines requires attention to detail and a thorough understanding of the essential requisites that should be present to make it enforceable. Whether you are a business owner or an individual, it is essential to consult an attorney to ensure that your contracts meet the legal requirements and protect your interests.