Here is where your

Law on
presentation begins

Obligation and
contract
 DIFFERENT KINDS OF CONTRACT

A. Deed of Absolute Sale

B. Deed of Conditional sale

C. Deed of Sale of Motor Vehicle

D.
E.
Contract to Sell

Deed of Donation

F.
G.
Employment Contract
Contract of Loan

H. Articles/ Contract of Partnership

I. Special Power of Attorney

J. Marriage Contract
WHAT IS CONTRACT?
A contract is a legally binding agreement
between at least two parties that specifies and
governs the parties' rights and obligations. If
it complies with the law's provisions and
approval, a contract is legally enforceable. A
contract usually entails the exchange of
goods, services, money, or the promise to
exchange all of these. When a contract is
breached, the statute must provide the
affected party with either legal redress such
as damages or cancellation.
DEED OF ABSOLUTE SALE
 DEED OF ABSOLUTE SALE

The absolute deed of sale is a necessary legal document that proves both parties' obligations
have been met and the transaction can now be considered closed. On transactions involving
pure obligations, an absolute deed of sale is commonly used. Pure obligations are debts that
are not subject to any conditions and can be collected immediately. Pure obligations are
common in direct real estate transactions in which the buyer pays in full with cash or a
check. Once the buyer has delivered the payment, the seller is required to issue an absolute
deed of sale as proof that the buyer paid the full amount owed and is granted ownership and
legal rights to the property.

An absolute deed of sale is a legal document that states one party is transferring his
real estate property rights to another. This means that the buyer now owns all of the
seller's rights to the property. The buyer now has complete ownership of the property
he purchased.

All parties sign the contract in front of a notary public. To be valid, it

must provide the date and place of the filing, correct property
identification, and the names and addresses of the buyer and seller.
 DEED OF ABSOLUTE SALE

The utter deed of sale may The document specifies that “the The agreement also has a
also have distinguishing SELLER is willing to sell and the declaration of guarantee
features of the land, such as BUYER is willing to buy the that there are no
the full address or a brief above-described real estate outstanding transactions in
summary of the house. land,” and “acknowledged by the Registry of Deeds for the
Identifying features is the SELLER to her satisfaction, land: “The SELLER
critical, particularly when the SELLER SELLS, CEDES, warrants that she will pass
dealing with property. Since TRANSFERS, and CONVEYS the title and ownership of
there are often no definite the above real property unto the the aforesaid real estate
boundaries on the property, BUYER, his descendants, property to the BUYER and
it is important that the deed assigns, and successors-in- that there are no such
of utter sale provide a interest in an utter and transactions pending
thorough definition of the lot irrevocable manner.” This registration with the
area or floor area to avoid clearly indicates that the seller is Registry of Deeds.”
legal problems. now passing ownership of the
property to the buyer.
DEED OF ABLSOUTE SALE

LETTER F

$00,000

7%
Expansion of the sector
DEED OF CONDITIONAL SALE
A typical real estate sale starts when a potential buyer submits an offer to
purchase to the property's seller. A conditional offer, like a standard offer,
specifies the terms of the sale, such as the purchase price, the date of closing, the
names of the parties, and the amount of any required deposit, but it also specifies
a number of conditions that must be met in order for the contract to be binding
30% may include co-purchaser approval, financing
on the parties. These conditions
acceptable to the purchaser, receipt and review of a survey demonstrating that the
buildings on the property comply with local zoning regulations, a title search
revealing no unacceptable liens or encumbrances, confirmation from the current
mortgagee that the property is not in foreclosure, and the like. If the vendor
accepts the offer, the offer to purchase will become a contract binding on the
parties once all conditions are met.

A conditional sales agreement is a contract under which products are sold under
5%
certain conditions. The seller requires the buyer to take delivery of the goods
25% in the contract and pay for them later, also known as a conditional sales
specified
contract. Until the buyer pays the full price, the seller retains legal ownership of
the land.
 DEED OF CONDITIONAL SALE
A conditional sales agreement is a contract that involves the sale of goods. Also
known as a conditional sales contract, the seller allows the purchaser to take
delivery of the items outlined in the contract and pay for them later. Rightful
ownership of the property belongs to the seller until the full price is paid by the
buyer.
30%
Many conditional sales contracts involve the sale of tangible, physical assets—
sometimes in large quantities. These include vehicles, real estate, machinery, office
equipment, tools, and fixtures.

A buyer and seller come together and begin the contract with
a verbal agreement. Once they both concur on the terms,
the buyer draws up a formal, written contract that outlines
the terms including deposit, delivery, payments, and conditions.
The contract should also include what happens if the buyer
defaults and when payment in full is expected.
 DEED OF CONDITIONAL SALE

Conditional Sales Agreement Contracts

Strong contracts lay out details of the nature of the deal between the buyer and seller, and are
ready for review for both parties to sign once they are able to come to a verbal agreement.

Contracts should be as specific as possible and outline the following criteria:

● Property type: The nature of the assets in question, their condition, as well as the quantity being
transferred to the buyer.
● Payment: The amount of the deposit or down payment required by the buyer to secure the
property from the seller. This section should also include when the final payment is due.
● Interest: Because payment is being made in installments, the buyer will also outline the amount
of interest it intends to collect during the length of the contract.
● Delivery: How and when delivery of the property will take place.
● Title transfer: The date by which the title should transfer to the buyer as long as the conditions
of the contract are fully met.
● Default: The details of when the buyer is in default of their obligation.
● Repossession: The contract should also describe the procedure for the seller to recover any
property. This typically includes a clause giving the seller the right to enter the premises to take
possession of equipment and other personal property.
DEED OF CONDITIONAL SALE

LETTER F
DEED OF SALE OF MOTOR VEHICLE
 DEED OF SALE OF MOTOR VEHICHLE

According to the law, if you are buying a

A Deed of Absolute Sales of a
used car, then you should register the
Motor Vehicle is a binding
vehicle at the Land Transportation Office
agreement that documents the
(LTO) after the ownership shifts on your
transition of possession of a
name. The deed of sale is the only
motor vehicle from the Buyer
paperwork that confirms the payment has
to the Seller. The Buyer and
been cleared and both the parties are
Seller will use this contract to
agreed.
describe the terms and
conditions of the deal,
providing a summary of the This form will be used to report A deed of sale is sketched by the one who
motor vehicle to be offered the selling of any land vehicle is selling the vehicle, and it comprises of
and the selling price. that must be licensed with the the details regarding the transaction.
Land Transportation Office, Also, the mentioned document should
such as passenger cars, then be approved by a lawyer, or else, the
bicycles, vans, and so on. document will just be a piece of paper
with no power. As a result, it will not
fulfil the crucial goal of protecting the
buyer as well as the seller.
 DEED OF SALE OF MOTOR VEHICLE

Also, the deed of sale does not change the The Registered Owner Rule in the Philippines
ownership. In order to get the ownership Now, the deed of sale holds the details of the declares that, if your name is registered on the
transferred, the buyer is required to register vehicle like - Color, Make, Body Type, Model, certificate of registration, then you will be
and transfer the ownership of the car. It’s not Plate Number, and Engine Number. Moreover, responsible if the vehicle gets included in a
entirely the responsibility of the buyer, but the it will also include personal details of the seller, road accident.No matter who was driving the
seller should also make sure that the new which covers the Full Name, Address, Marital car, the owner will be responsible for the
owner will shift the ownership to his/her Status, and the Precise Amount of the Vehicle actions. That’s the reason why you should
name. This will help the previous owner to traded. The deed of sale will also hold details transfer the ownership while selling your car to
prevent the troubles that can arise if the car is of the buyer, such as the address and full name. prevent such troubles in case of accidents.
involved in an accident. Both the seller and the buyer are required to
sign the deed of sale.
DEED OF SALE OF MOTOR VEHICLE
CONTRACT TO SELL
 A Contract to Sell is a contract between a seller and a
buyer. The deal states that the seller agrees to offer things
to the buyer and that the buyer then promises to purchase
the property from the seller. However, even though the
document is concluded, the buyer would not immediately
acquire the privilege. There are also requirements that
must be met by either or both sides before possession can
be transferred. The Deed of Absolute Sale will be
performed only after all of the provisions specified in the
Contract to Sell have been fulfilled.

This is similar to sale on installments except that the period allowed for the final
payment of the purchase price is much shorter in duration.

Seller – transfer the ownership and deliver a determinate thing

Buyer – to pay a certain price in money or its equivalent

The buyer will propose the conditions of the contract, including their offer price,
which the seller will then either agree to, reject or negotiate.

◦ an offer
◦ an acceptance
◦ an intention to create a legal relationship
 CONTRACT TO
SELL
In a contract to sell, upon the fulfillment of the suspensive condition which is the full payment
of the purchase price, ownership will not automatically transfer to the buyer although the
property may have been previously delivered to him. The prospective seller still has to convey
title to theprospective buyer by entering into a contract of absolute sale.

Like all other contracts used in property transactions, all the important information must be
present in the document. This includes:

Name of seller
Name of buyer
Address of property to be sold
Description of the property (lot dimensions in square meters)
Transfer Certificate of Title No.
Name of the town or city where the property is registered
Price of the property
Terms and Conditions
DEED OF DONATION
 DEED OF DONATION

A Deed of Donation decided to donate properties from the owner (the "donor") to another
individual (the "donee"). The Donation Deed is usually performed for the donor's devotion,
gratuity, and gratitude for the donee (i.e. from a parent to a child).

The donation should be easy and uncomplicated, with nostrings attached. The donor may,
therefore, place restrictions on the donation that the donee must meet or face having the
donation withdrawn.

You may use Legal Tree to build a basic straight-up Deed of Donation that transfers land to
another individual. You may also establish a Deed of Donation that has specific terms or
provisions for both the donor and the donee, depending on the circumstances.

1. Donor must have Capacity to make the donation

2. He must have donative Intent (animus donandi)

3. There must be Delivery

4. Donee must Accept or consent to the donation during the lifetime of the donor and of the
donee in case of donation inter vivos (Art. 746, NCC); whereas in case of donation mortis
causa, acceptance is made after donor’s death because they partake of a will (Art. 728,
NCC)
EMPLOYMENT CONTRACT
 EMPLOYMENT CONTRACT

An contract made by an employer and an employee at the point of hiring that specifies the precise essence of
their business contract, exactly what benefits the employee would get in return for particular work done.

The two parties of an employment contract are the employer and the employee. In this lesson we are analysing
who can be named an employer and who can be named an employee. In particular, which features and
requisites of capacity need to be full filled to fit into these two categories. In addition, a specific type of
employer called temporary employment agencies is highlighted.

An employee is a natural person providing a reliant and dependant service to a natural or legal person called
the employer. His/her relationship is regulated in the ES.

An employer is a natural or legal person who receives a reliant and dependent service from employee

The term can be for whatever time period is agreeable between you and your employer; however, if the term is
to be more than one year, the employment contract will not be valid unless it is in writing.

An employment contract is a signed agreement between an individual employee and an employer or a labor
union. It establishes both the rights and responsibilities of the two parties: the worker and the company.

Review information on what to expect when you're asked to sign a contract, types of agreements that cover
employees in the workplace, and the pros and cons of employment contracts.
 EMPLOYMENY CONTRACT

A valid employment contract can take several forms, from a handshake and verbal agreement to a
lengthy written document. Most employees are hired on the basis of a verbal offer and acceptance of a
job, with the employees' rights primarily governed by state and federal law and labor regulations. If
you are offered employment with terms that provide you with greater rights then provided by law, you
should and in some cases must have a written employment contract for the terms to be valid.

By law, an employment contract must contain the following contractual clauses, known as ‘express terms’:

• Name and address of employer and employee

• Start date
• Date contract will apply from
• Continuous services date
• When the contract is expected to end if temporary or fixed term
• Job title or a brief description of duties
• Place of work
• Requirement to work overseas
• Hours of work
• Pay – how often and when
• Holiday entitlement
• Sickness absence and pay
• Notice period
• Pension arrangements
• Disciplinary and grievance procedures (or explanation on where to find information about these)
• Collective Agreements
 EMPLOYMENT CONTRACT
It’s also advisable to include clauses on the following issues in contracts:

• Requirement to undertake other duties

• Warranty to be able to work in the UK
• Not allowed to work elsewhere
• Requirement to act in your best interests
• Flexibility
• Compliance with remote working policy
• Rules and procedures
• Monitoring
• Payment in lieu of notice
• Dismissal without notice
• Suspension
• Changes to terms of employment
• Employer property
• Health and safety
• Confidential information
• Intellectual property
• Data Protection
• Third party rights
Signature

You can also use the employment contract to agree a wide range of other particulars
with the employee, such as:

• discretionary bonuses
• compassionate leave
• the right to search
CONTRACT OF LOAN
 CONTRACT OF LOAN
By a loan contract, one party delivers to another either anything non-consumable such that the other can use it for a set period of
time and then return it, in which case the contract is known as a commodatum; or money or another consumable thing on the
condition that the same amount of the same kind and quality be paid.

A loan agreement is a very complex document that can protect the two parties involved. In most cases the lender creates the loan
agreement, which means the burden of including all of the terms for the agreement falls on the lending party. Unless you have
created loan agreements before, you will likely want to make sure that you completely understand all of the components so you
do not leave out anything that can protect you during the lifetime of the loan. This guide can help you create a solid loan
agreement and understand more about the mechanics behind it.

A loan agreement is an agreement between two parties. One party (known as the ‘lender’) agrees to provide a loan to the other
party (the ‘borrower’). The borrower will have various obligations under a loan agreement. The terms of each loan agreement
will differ. To better understand how loan agreements will affect you (as a borrower), this article will explain the most common
obligations a borrower will have.

If you are a borrower, you will have essential obligations under your loan agreement. The most common obligations you may
have are listed below.

You might have to use the money you borrow for a particular purpose. The lender might want to restrict how you use the money
because it might consider some uses too risky. If the loan is for personal or domestic use, then the lender will need to comply
with certain consumer protection laws. This will affect what is in the loan agreement.

You will be obliged to repay the lender’s principal loan amount. Details of exactly when and how you must repay the principal
loan will depend on the loan agreement’s terms. Generally either the full amount is due on one particular date, or the amount is
payable in instalments over time.

There are no formal requisites for the validity of a contract of loan except if there is a stipulation for the payment of interest.
A stipulation for the payment of interest must be in writing.
ARTICLE/ CONTRACT OF PARTNERSHIP
A partnership contract, also known as the articles of partnership, is a legal
document that specifies the conditions of the partnership as well as the
relationships between partners. A relationship agreement does not necessarily
have to be in writing. People may shape a verbally binding contract simply by
agreeing during a business meeting.

Obviously, all partnership arrangements and settlements should be in writing in

the event of potential conflicts. When starting a new company with a partner, it's
better to have an attorney prepare a joint deal.

(i) Every partner has a right to take part in the conduct and management of the
business.

(ii) Every partner has a right to be consulted before taking important decisions.
The decisions should be taken by mutual consent. If the decisions are
unimportant, then they can be enforced by majority, but consensus of all
partners is necessary for taking important decisions.
 ARTICLE/ CONTRACT OF PARTNERSHIP

(iii) The partners have a right to inspect books of accounts.

(iv) Every partner will have an equal share in profits, unless otherwise mentioned, in partnership deed.

(v) No new partner can be admitted into partnership without the consent of all partners.

(vi) Every partner has a right to receive interest at the rate of 6% per annum on the excess money supplied over his capital

(vii) Every partner has a right to be indemnified by the firm in respect of expenses incurred or losses suffered for the normal conduct of the business.

(viii) A partner has a right to get the firm dissolved under appropriate circumstances.

(ix) The property of the firm shall be held and used exclusively for the purpose of the business.

Obligations of a Partner:

(i) Every partner should carry on the business to the greatest common advantage. He must perform his duties honestly and diligently.

(ii) A partner is not entitled to get remuneration for the conduct of business, unless otherwise it is specially mentioned in the partnership deed.

(iii) A partner must indemnify the firm for loss suffered because of his fraudulent conduct or willful neglect.

(iv) A partner is bound to keep and render true and correct accounts of the business.

(v) A partner cannot carry on a competing business. If he carries on such business he shall account for and pay to the firm all profits made by him in that business.
 ARTICLE/ CONTRACT OF PARTNERSHIP

A partnership agreement is a contract between partners in a partnership which sets out the terms and conditions of
the relationship between the partners, including: Percentages of ownership and distribution of profits and losses.
Description of management powers and duties of each partner.

REQUISITES ON PARTNERSHIP CONTRACT:

A. Valid Contract
B. Capaticy to Contract
C. Contribution of money, property, or industry
D. Object must be awful
E. Purpose it on obtains profits and divide among partners
F. There must be atleast one general partner
SPECIAL POWER OF ATTORNEY
 SPECIAL POWER OF ATTORNEY
A special power of attorney is a legal instrument that authorizes one individual, referred to as an agent or an
attorney in reality, to work on behalf of another person, referred to as the principal, under particular,
specifically defined circumstances.

A special power of attorney, also known as a limited power of attorney (LPOA), enables a party to delegate
authority to another person to make such legal or financial decisions on their behalf.

A power of attorney refers to an agreement between two individuals that allows one individual to act on the
other's behalf. For example, you might want a power of attorney if you are out of the country and unable to
carry out a business transaction yourself, or if your abilities are limited by a medical condition. The person
who initiates a power of attorney, whether in oral or written form, is referred to as the grantor or principal.
The authorized individual named in the agreement is referred to as the attorney in fact or agent. In the case of
a special power of attorney, the actions that the agent can take are limited to very specific circumstances.

Because this type of power of attorney is limited to what has been laid out in the signed document, it is
particularly important that the principal is very clear about the powers that they want the agent to have.
Additionally, the principal may create more than one special power of attorney, naming a different individual
in each one.
 SPECIAL POWER OF ATTORNEY

An internet search for a special power of attorney sample yields a lot of different formats. Settle for a
style that fits what you want and is presentable. Decide what powers one should grant the agent
during the preparation.

Since it is a legal document, ensure the details are correct. Find out the special power of attorney
requirements Philippines below:

• The name and address of the principal.

• The ID, physical address, and agent's details.
• A reason to get the SPA.
• Date and the place where one will sign that form.
• The principal's signature.
• The principal’s name, identification number, and the ID expiry date.
• Print the copies and once the form is filled, for the principal, representative, and notary public.
MARRIAGE CONTRACT
 MARRIAGE CONTRACT
A contract entered into between a prospective husband and wife, or during the marriage, that establishes, in whole or in
part, their respective rights and obligations in the marriage.A prenup or prenuptial arrangement is a term used to
describe a marital document.A marriage contract is a form of domestic contract that specifies how you can handle your
problems when you're together or after you've broken up.

You and your wife, for example, should negotiate about how you and your partner can share your property and debts if
you split. Land and spousal help are the two important topics that people struggle with in a prenuptial agreement.If you
were in a common-law partnership and signed a cohabitation arrangement, the law states that if you later marry your
wife, the deal would then constitute a marital contract.

prenuptial arrangement or a marital plan cannot address child-related problems. Children's decisions must be taken at the
point of separation or divorce, which must be made in the best interests of the infant. This entails decisions on who
gets to make the decisions and how much parental attention they get. Previously, they were referred to as custody and
control.

No marriage shall be valid, unless these essential requisites are present: Legal capacity of the contracting parties who
must be a male and a female; and. Consent freely given in the presence of the solemnizing officer