Article 1308

The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. (1256a)

Ang kasunduan ay dapat magbigkis sa isat isa, ang bisa o pagtupad ay hindi maaring ipaubaya sa kagustuhan ng isa sa kanila.

Discussion:

Mutuality of contracts. It is but natural and logical that the contract shall bind both contracting parties. This is the principle of mutuality contract. It is based on the essential quality of the parties. It is incongruous to bind one party and let free the other party from responsibility.

Obligations arising from contract have the force of law between the parties and should be complied with in good faith.

The binding effect of a contract on both parties is based on the principle that the obligations arising from contract have the force of law between the contracting parties, and there must be mutuality between them based essentially on their quality under which it is repugnant to have one party bound by the contract while leaving the other free therefrom.

Validity or Compliance. Cannot be left to the will of the one of the contracting parties.

What is meant here is that the contract cannot have any stipulation authorizing one of the contracting parties:

To determine whether or not the contract shall be valid, or;

To determine whether or not the contract shall be fulfilled

However, a third person may be authorized to determine the performance or fulfillment of the contract but not to determine its validity. He must not however make the determination of the fulfillment evidently equitable.

Stipulations allowing a party to cancel or rescind do not militate against mutuality of contracts.

No judicial action for rescission is necessary where the revocation of the contract is authorized for the violations of its terms and conditions.

Mutual cancellation. The general rule is that a party cannot revoke or renounce a contract without the consent of the other. They may however mutually cancel their contract under such terms and conditions as they deem wise.

Article 1309

The determination of the performance may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties. (n)

Ang pag determina ng paggawa ay maaring ipagkatiwala sa ikatlong tao, na ang desisyon ay hindi magsasama hangang malaman ng bawat partido.

Case Illustration: Mindanao Portland Cement Corporation vs. Mc Donough Construction Company of Florida

 

Article 1310

The determination shall not be obligatory if it is evidently inequitable. In such case, the courts shall decide what is equitable under the circumstances. (n)

Ang pagtitiyak ng isang obligasyon ay hindi na kinakailangan kung kapansinpansin ang hindi pagkapantay ng mga ito. Ang korte ang siya magpapasiya upang ito ay maging pantay.

Discussion:

Juan a tenant of a rice farm of Mrs soledad was not able to give the lease due to Mrs Soledad for two consecutive rice season.  Who will decide on the case?  How do you think it will be decided? Justice or Equity?

Base on Article 1310, the Court will only be the one to decide on the based on justice and equity. Justice means giving each what is due but equity is a process by which court relax the sanctions of the law for humanitarian consideration.