If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control. In that context, a contract may be described as an agreement that the law (the Courts) will enforce. Law of Contracts 1.1. – This Act shall apply to the Procurement of SEC. The principles of interpretation found in the Rules of Court will be observed in the interpretation of contracts. 1. * embodies the Principle of Consensuality: 4. In the Philippines, employment contract are interpreted in favor of … awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of this Act and its implementing rules and regulations, and that all these contracts are performed strictly according to specifications. (1281)… If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control. Such interpretation is a direct contravention of paragraph 12, which clearly states that the term of the Contract shall be one year: "12. INTERPRETATION OF CONTRACTS Article 1370. it depends on what kind of contract you are interpreting. Civil law operates in areas such as family relations, property, succession, contract, and criminal law, while statutes and principles of common law origin are evident in such areas as constitutional law, procedure, corporations law, taxation, insurance, labour relations, banking and … Chapter 1: General Provisions of Contracts; Chapter 2: Essential Requisites of Contracts; Chapter 3: Form of Contracts; Chapter 4: Reformation of Instruments; Chapter 5: Interpretation of Contracts; Chapter 6: Rescissible Contracts; Chapter 7: Voidable Contracts; Chapter 8: Unenforceable Contracts; Chapter 9: Void or Inexistent Contracts (1281) Article 1371. Philippines's legal system is a mixture of Roman civil law and Anglo-American common law systems. (125a) Ang kontrata ay pagpupulong ng kaisipan sa pagitan ng dalawang tao na kung saan ang isa ay binibigkis ang kanyang sarili sa isa na magbigay o maggawad… • RULE 2: The provisions of the Civil Code of the Philippines on the interpretation of contracts and of the Rules of Court on the Interpretation of Documents shall be applied. Art 1315. Contracts. If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former. Scope and Application. This notion of enforceability is central to contract law. Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. 4. CHAPTER 5 Interpretation of Contracts Article 1370. The cardinal rule in the interpretation of contracts is embodied in the first paragraph of Article 1370 of the Civil Code: "[i]f the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control." TERM OF CONTRACT: "This Contract shall take effect on May 25, 1994 and shall be for a period of One (1) Year from said date. Re: interpretation of contracts. If you break (breach) the contract, the other party has If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former. CHAPTER 5. Definition and Forms of contracts The law of contract is concerned about the legal enforceability of promises.

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