Article 1350

In onerous contracts the cause is understood to be, for each contracting party, the prestation or promise of a thing or service by the other; in remuneratory ones, the service or benefit which is remunerated; and in contracts of pure beneficence, the mere liberality of the benefactor. (1274)


Ang pagkakautang na kailangang bigyan ng pangunahing pansin ay dapat nauunawaan ng bawat partido, kagaya ng mga bagay ng mga pangako ng bawat isa; mga bagay na bayaran at serbisyo at benepisyong gagawin, at ang mga kagalingan at kabutihan na magagawa nito.

Kinds of contracts which regards to cause:

1. Onerous- the cause is the mutual undertaking or the promise each contracting party makes
2. Remuneratory- the cause is the service or benefit for which the remuneration is given.
3. Gratuitous- cause is the pure liberality of the benefactor

Cause is the essential or more proximate purpose which the contracting parties have in view at the time of entering into a contract.

Example:

Casio sold a watch to Timex for Php 5,000.00.

The cause for Timex is the delivery of the watch, for Casio it is the delivery of the Php 5,000.00 and the subject matter is the watch.