Art. 1308

Art. 1308. The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them. (1256a)

Mutuality of contracts. It is but natural and logical that the contract shall bind both contracting parties. This is the principle of mutuality contract. It is based on the essential quality of the parties. It is incongruous to bind one party and let free the other party from responsibility.

Obligations arising from contract have the force of law between the parties and should be complied with in good faith.

The binding effect of a contract on both parties is based on the principle that the obligations arising from contract have the force of law between the contracting parties, and there must be mutuality between them based essentially on their quality under which it is repugnant to have one party bound by the contract while leaving the other free therefrom.

Validity or Compliance. Cannot be left to the will of the one of the contracting parties.

What is meant here is that the contract cannot have any stipulation authorizing one of the contracting parties:

a.     To determine whether or not the contract shall be valid, or;

b.     To determine whether or not the contract shall be fulfilled

However, a third person may be authorized to determine the performance or fulfillment of the contract but not to determine its validity. He must not however make the determination of the fulfillment evidently equitable.

Stipulations allowing a party to cancel or rescind do not militate against mutuality of contracts.

No judicial action for rescission is necessary where the revocation of the contract is authorized for the violations of its terms and conditions.

Mutual cancellation. The general rule is that a party cannot revoke or renounce a contract without the consent of the other. They may however mutually cancel their contract under such terms and conditions as they deem wise.