Gratuitous Contract Philippines
In legal parlance, a contract is a meeting of minds between two persons, whereby one binds himself, with respect to the other, to give something or render some service. One of the classifications of contracts under Philippine law is based on the cause or consideration: onerous and gratuitous.
A gratuitous contract, also known as a contract of pure beneficence, is one where one of the parties intends to benefit the other without expecting anything in return. This is in contrast to an onerous contract where each party expects to give and receive a benefit or consideration. The essence of a gratuitous contract is the intention of the benefactor to give a liberal donation to the beneficiary, which means it is done out of sheer generosity, kindness, or charity.
Under the Civil Code of the Philippines, gratuitous contracts are generally subjected to the rules on donations. For instance, if the gratuitous contract involves the transfer of ownership of a real property, it must be made in a public document and must be accepted by the donee in the same or in a separate public document in order for it to be valid. Failure to adhere to this formality renders the contract void.
It is important to note that gratuitous contracts are more strictly construed than onerous ones. The reason behind this is to safeguard the interests of the benefactor. Since the benefactor does not expect anything in return, the law ensures that their intention is genuinely out of liberality and not out of error or undue influence.
Furthermore, obligations arising from gratuitous contracts become demandable only when the parties have executed them, unlike onerous contracts where obligations arise immediately upon the perfection of the contract.
In conclusion, a gratuitous contract under Philippine law is an embodiment of pure generosity. It signifies a gesture of goodwill without expecting anything in return. However, due to its nature, the law provides specific guidelines and safeguards to ensure that such acts of kindness are genuine and not influenced by external factors.