PROCESO DE CONTRATACIÓN BAJO LA MODALIDAD DE LICITACIÓN PÚBLICA

Concept of Object  - The object of a contract is its subject- matter. It is the thing, right, or service which is the subject- matter of the obligation arising from the contract. Hence, it is said that under the Code, the object of the contract and the object of the obligation created thereby are identical

Requisites of Object; In order that a thing, right , or service may be an object of contracts, it is necessary that the following requisites concur:

1. The object must be within the commerce of man (Art. 1347) 2. It must be licit, or not contrary to law, morals, good customs, public policy, or public order (Art. 1347)

3. It must be possible (Art. 1348)

4. It must be determinate as to its kind (Art. 1349)

OBJECT CAUSE

Thing, service, or right one party expects to deliver or perform

That which the party expects to receive or enjoy

Illustration:

VENDOR SITUATION: VENDEE

O: CAR C: P1,000,000 CAR for P1,000,000 O: P1,000,000 C: CAR

Note: What the object/ cause of the contract depends on the perspective of the party42

Art. 1347. All things which are not outside the commerce of men, including future things, may be the object of a contract. All rights which are not intransmissible may also be the object of contracts.

No contract may be entered into upon future inheritance except in cases expressly authorized by law.

All services which are not contrary to law, morals, good customs, public order or public policy may likewise be the object of a contract. (1271a)

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Within Commerce of Man; The object of contracts must be within the commerce of man. Modern writers include in the category of things “outside the commerce of man” all kinds of things and interests whose alienation or free exchange is restricted by law or stipulation, which parties cannot modify at will. It is believed, however, that it would be more accurate to understand this phrase in the Roman law concept; that is, including only those things which are not susceptible of appropriation or of private ownership, and which are not transmissible

Existence of Object; It is essential that the object must be in existence at the time of the perfection of the contract, or that it has the possibility or potentiality of coming into existence at some future tome. Thus, even future things can be object of contracts

By “future things” are understood those which do not belong to the obligor at the time the contract is made; they may be made, raised, or acquired by the obligor after the perfection of the contract

The term “future things” includes not onlymaterial objects but also future rights

When the contract involves future things, it may either be (1) conditional, or subject to the coming into existence of the

thing, or (2) aleatory, or one of the parties bears the risk of the thing never coming into existence

Future Inheritance; By way of exception to “future things” as objects of contracts, the law generally does not allow contracts on future inheritance

In order that a contract may fall within the prohibition of this article, the following requisites are necessary: (1) that the succession has not yet been opened, (2) that the object of the contract forms part of the inheritance, and (3) that the promissor has, with respect to the object, an expectancy of a right is purely hereditary in nature

An agreement for the partition of the estate of a living person, made between those who, in case of death, would be in a position to inherit from him, is void. And a contract renouncing the right to inherit from one who is still alive, is also void

After the death of a person, however, the properties and rights left by him by way of inheritance can be the subject-matter of a contract among or by his heirs, even before a partition thereof has been made, because the rights of the heirs are transmitted to them from the moment of death of the predecessor

Not Part of Inheritance; When the object of the contract is not a part of the inheritance, the prohibition does not apply, even if the delivery of such object is dependent upon the death of one of the contracting parties. Thus, life insurance contracts, and stipulations providing for reversion of property donated in marriage settlements in the event of the death of the done, are valid

Contrary to Law or Morals; The contract is void if at the time it is entered into, the object is contrary to law or morals. The law violated need not be penal in nature; it is enough that it be mandatory or prohibitive

Prestation of Third Party; The prestation promised in a contract must be personal to the party. A person can obligate only himself; he cannot obligate a third person. Third  does not mean that a contract in which the prestation of a third person is promised, is void; it is valid. The third person, however, is not bound; only the promissor is bound by the contract to use all means so that the third person may perform the prestation

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Art. 1348. Impossible things or services cannot be the object of contracts. (1272)

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Things are impossible when they are not susceptible of existing, or they are outside the commerce of man. Personal services or acts are impossible when they are beyond the ordinary strength or power of man. The impossibility must be actual and contemporaneous with the making of the contract, and not subsequent thereto

ABSOLUTE/ OBJECTIVE RELATIVE/ SUBJECTIVE

When the act or service

in itself, without

considering the person of the obligor, becomes impossible; i.e. when the

prestation is

When the act or service cannot be done by the debtor himself, but it can be accomplished by others; i.e. when the debtor becomes so seriously ill that he cannot perform the stipulated act or service,

subsequently prohibited by law so that nobody can do it

although it can be done by anybody else

When nobody can

perform it

When due to the special conditions or qualifications of the debtor it cannot be performed

Nullifies the contract If temporary, does not nullify the contract, such as when a partner agrees to contribute to the partnership an amount more than is permissible by his means; if

permanent, it nullifies the

contract, such as blindness in contracts which required the use of eyesight

The impossibility, therefore, must be absolute, not relative, and must be determined objectively, and not in relation to the debtor personally, with rare exceptions

Liability for Damages; When the object is impossible, the contract is void and inexistent; hence, it cannot give rise to any  juridical relation

If [the obligor] knew of the impossibility, or could have known of it, his bad faith or negligence makes him liable for damages. The amount of damages, however, will be limited in this case to the losses the creditor may have suffered by having relied on the contract; he cannot recover all the damages arising from non-performance of the contract

But if the debtor is also ignorant of the impossibility, and his ignorance thereof is justifiable, or unavoidable, the reason for his responsibility ceases, and he cannot be held liable for the damages suffered by the creditor

There is no liability for damages if both parties have knowledge of the impossibility

Partly Impossible; If the thing is partly possible and partly impossible, the effect will depend upon the divisibility of the thing. If it is indivisible, by its nature or by the intention of the parties, there is no contract; the consent would be wanting, because it was either for the whole obligation or for none at all. But if the thing is divisible, then the contract is valid to the extent that it is possible

Difficulty of Performance; Impossibility of performance should not be confused with mere difficulty. It is elemental that the law requires parties to do what they agreed to do. If a party charges himself with an obligation difficult of performance, he must abide by it. A showing of m ere inconvenience, unexpected impediments, or increased expenses is not enough to relieve him of the obligation. Equity cannot relieve from bad bargains simply because they are such. The debtor who does not perform in such cases must be held liable for damages

But if the obstacles to the performance of the prestation are so great that they can only be overcome with sacrifices which are absolutely disproportionate, the prestation must be considered impossible, taking into account the rational, ethical, and economic considerations in the light of the presumed intention of the parties and of good faith

Thus, one may not obligate himself to do something which, when accomplished, will prove to be dangerous to life and property. It is contrary to law and public policy to force the performance of a contract that is undesirable and harmful

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Art. 1349. The object of every contract must be determinate as to its kind. The fact that the quantity is not determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine the same, without the need of a new contract between the parties. (1273)

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Determination of Kind; The object of the contract need not be individualized; but it must be determinate as to its kind or species

But if the object is merely “something” or “an animal,” the species is not determined, and the contract would be void The thing must have definite limits, not uncertain or arbitrary Determination of Quantity; the quantity of the object may be indeterminate, so long as the right of the creditor is not rendered illusory. Its future determination must, however, depend upon circumstances already provided in the contract itself

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