Article 1306

RA 386 · Civil Code of the PhilippinesKey provision

ELI5— what this means for you

The parties are free to stipulate any terms and conditions — as long as they are not contrary to law, morals, good customs, public order, or public policy.

Key point

Freedom of contract is fundamental — but the law draws the line at illegal, immoral, or unconscionable terms.

Official text — RA 386

The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy. (1255a)

Source: lawphil.net (RA 386 as amended)

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