Practice question
A supply contract provides that one party alone may decide whether any of its own promises will bind at all, while the other must perform unconditionally. The first party invokes freedom of contract as eliminating mutuality. Which is correct?
- Freedom of contract abolishes every statutory limit
- The stronger party automatically prevails
- Article 1308 requires mutuality and does not permit validity or compliance to be left to one party’s unrestricted will
- The agreement is protected solely because it is notarized
- The other party’s silence always waives mandatory law
Legal references
- Civil Code, Articles 1306 and 1308: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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