A third party may be authorized to determine whether a contract has been fulfilled or the performance completed, with their decision becoming binding once both parties are informed. This article provides an exemption to the general principle that contracts require mutual agreement, allowing a third party's decision on performance or fulfillment to stand in lieu of mutual consent between the original contracting parties. The third party's determination does not bind the parties until they have both been notified of the decision.

1. Article 1309
The determination of the performance may be left to a third person, whose decision shall not be
binding until it has been made known to both contracting parties.
A third person may be called upon to decide whether or not performance has been done for the
fulfillment of the contract. Such decision becomes binding when the contracting parties have been
informed of it.
• This article is the exemption to the one previously discussed. (Art.1308)
Exemption to the principle of mutuality of contracts
Exception to Art. 1308 (Mutuality of Contract)
Example:
Angel sells her parcel of land to Lyca. Both parties agreed that Jelly (who is a third Person) will be
the one to determine the reasonable price of the land because Jelly is a real estate appraiser.
Note: This exemption is not also absolute because it has also an exemption…..this will be discussed
by the next reporter