Article 1311
ELI5— what this means for you
Relativity of contracts: contracts take effect only between the parties, their heirs, and their assigns. Third parties generally have no obligations or rights under a contract they are not party to.
Official text — RA 386
Contracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. The heir is not liable beyond the value of the property he received from the decedent.
If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient. The contracting parties must have clearly and deliberately conferred a favor upon a third person. (1257a)
Source: lawphil.net (RA 386 as amended)
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