MENDOZA, MA. CHRISTIANA B.

BUSLAWS

Stipulation pour autrui

• French term meaning ‘stipulation for others’ or stipulation in favour of
other parties
• It is a stipulation in a contract clearly and deliberately conferring a
benefit upon a third person who has the right to demand its fulfilment, provided
he communicated his acceptance of the benefit to the obligor before its
revocation by the obligee or the original parties.
• It is also an exception to the general rule of relativity, one of the
characteristics of a contract, stating that contracts take effect only between
parties, their assigns and heirs. (Civil Code, Art. 1311)
Requisites of a Stipulation pour autrui
1. There must be a stipulation in favour of a third person;
2 classes of stipulations in favour of a third person:
a. Those where the stipulation is intended for the sole benefit of such
person;
b. Those where an obligation is due from the promise to the third person
which the former seeks to discharge by means of such stipulation, such as
where a transfer of property is coupled with the purchaser’s promise to pay a
debt owing from the seller to a third person.
2. The stipulation is a part, not the whole of the contract;
3. The contracting parties clearly and deliberately conferred a favour to the
third person – the favour is not an incidental benefit;
4. The favour is unconditional and uncompensated; That the favourable
stipulation should not be conditioned or compensated by any kind of obligation
whatsoever
5. The third person communicated his or her acceptance of the favour
before its revocation by the original parties;
6. The contracting parties do not represent, or are not authorized by, the
third party.
Example:
1. Benito leased his house to Procopia for 2 years at an agreed rental of P10,
000.00 a month. They stipulated that the P10000 monthly rental should
be given to Celso, a godson of Benito, as his monthly allowance. Celso
communicated his acceptance of the benefit to Abel, the debtor, before
Benito could revoke the same.
The stipulation in the contract between Benito and Procopia expressly
granting a benefit to Celso who accepts the same is known as stipulation
pour autrui.
2. Straw Berry is indebted to Buko Pie in the amount of Php 5,000.00. If
Buko Pie dies, Straw Berry must pay the heir of Buko Pie, Apple Pie. If
Straw Berry dies and Blue Berry is her heir, then Blue Berry assumes the
obligation of Straw Berry to Buko Pie. Blue Berry, however, is not liable
beyond the value of the property she inherited from Straw Berry.

References:
 Retrieved from.,
https://www.google.com/amp/s/lspuoblicon2017blog.wordpress.com
/2017/04/30/article-1311/amp/
 Retrieved from.,
https://www.scribd.com/document/171456846/Stipulation-Pour-
Autrui-Notes