Verbal Agreement Philippine Law

In the absence of one or more elements of a valid contract in an oral contract, it is likely that a court will annul the agreement and it will not be enforceable. Many States have rules for certain treaties that must be written, which considers that oral agreements are insufficient. MANILA, Philippines (AIS) — President Duterte`s so-called verbal fisheries agreement with China becomes binding when he mentions it in his July 22 State of the Union (SONA) address, Antonio Carpio, the Supreme Court`s senior associate justice, warned yesterday. “But if the president confirms it to SONA, I mean we can`t get out of it anymore. We are therefore bound to it; We have to respect it,” Carpio said. The president will therefore have to say that there is no such agreement because if there is, we are bound by it,” he added. He said an oratory agreement or agreement allowing the Chinese to fish in the Philippines` Exclusive Economic Zone (EEZ) was a violation of the Constitution. Under Philippine law, the written signature of a valid contract is not mandatory – contracts are generally valid when the legally binding parties reach an agreement, whether they agree orally, electronically or in a paper physical document, and when the following essential conditions are met: (1) consent of the contracting parties, (2) specified subject matter, subject matter of the contract, and (3) The cause of the obligations that are established (Civil Code of the Philippines, Section 1318). Republic Act No. 8792, also known as the Electronic Commerce Act, and its rules and implementing rules expressly confirm that contracts are not enforceable solely because they are entered into electronically. As a general rule, parties may use electronic signatures to establish valid contracts, unless there are specific legal requirements to the contrary….

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