A Contract Set in Stone

The law on obligations and contracts is simple, it states that provided that all the essential and formal requisites of a contract have been complied with, then such agreement or covenant is considered as law between the parties, and no signatory to such a pact may be absolved from the performance of his or her obligation unless the interest of justice and fair play requires.

To put it more blatantly, a contract is an agreement entered into by two or more parties having the ample personality, capacity, and eligibility to contract, and upon finding that the subject of such agreement is well within the confines set forth by our laws, and public policy, then any provision, obligation, or duty incumbent upon any party to perform must be complied with in good faith. If a party’s act runs counter to any of said lawful provision, then a cause of action for breach of contract is available to the other party.

Breach of Contract is a serious malfeasance; it is as though not complying with a rule of law set forth, the only difference is that it is a law brought about by the agreement of the parties and the one that governs only parties thereto. Notwithstanding the same, non-compliance of any provision thereof would actually lead to causes of action ranging from restitution and reparation to payment of damages caused by non-performance.

The rule on proximity of contracts has been applied in breach of contract cases to the letter. This doctrine provides that only those who are signatories to a contract and their successors in interest are liable for any penalty brought about by the non-performance of the obligation. Consequently, the proximity of contracts also provides that only a signatory to the contract or any successor in interest have the ample right to file any claim against another party for non-compliance of his or her obligation. Any third party, who would like his or her right be promote cannot act on the basis of a contract to which he or she is not a party. His or her remedy lies on some other provision of law but not the contract for which he or she was in no way part.

Breach of Contract has several repercussions. Not only would the person be liable civilly for all the damages brought about by non-performance of an obligation, this may also lead to some other effects to include, rescission of the contract, restitution of what has been given by the party who complied with his obligation, or both, and in the said instance damages would also concur.