Contracts are binding in any form, provided that all the necessary conditions for their validity are met (Article 1356, ibid.). The following conditions are as follows: If two or more parties agree without written documents, they enter into an oral agreement (formally known as an oral contract). However, the authority of these oral agreements can be a bit of a grey area for those who do not know the law of contracts. Oral dispute over contract law is often based on the fact that one or both parties are clearly based on the agreement. Oral contracts are best as a simple agreement with easy-to-understand terms and evidence of the existence of the agreement. MANILA, Philippines – President Duterte`s alleged verbal fisheries agreement with China becomes binding when he mentioned it in his State of the Union (SONA) speech on July 22, the Supreme Court of Senior Justice Association Antonio Carpio warned yesterday. “At the time of making this statement to the SONA, it is a definitive confirmation that this oral agreement is now a binding legal agreement for the Philippines and China,” Carpio said at a forum organized by Stratbase ADR. “Animal” countries recognize the qualified electronic signature (QES or locally designated equivalent) as a unique type of eSignature. In these countries, a QES has a special legal status in the form of presumed authenticity and may be imposed by law for certain types of specific transactions. Nevertheless, a non-QES eSignature can still be presented in court, even in the countries of the animal, as long as the party presenting it has sufficient evidence to prove its validity. Countries that meet QES standards often find it difficult to promote electronic business transactions, particularly across national borders. “Open” countries do not have such technological requirements or types of eSignature that enjoy a particular legal status. Learn more about the legality of eSignature under www.docusign.com.
Contractual terms must not be presented in a vague, incomplete or erroneous manner. In other words, there should be an agreement on who the contracting parties are, on each party`s obligations, on the price to be paid and on the purpose of the contract.