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Outline
General Provisions (Arts. 1305 1317)
Essential Requisites of Contracts (Art. 1318- 1355)
Forms of Contracts (Arts. 1356- 1358)
Reformation of Instruments ( Arts. 1359- 1369)
Interpretation of Contracts (Arts. 1370- 1379)
Defective Contracts (Arts. 1380- 1422)
- Rescissible/ Voidable/ Unenforceable/ Void
Contracts (definition)
A meeting of the minds (acceptance
of offer)
Between two or more persons
Whereby one binds himself, with
respect to the other
To give something or to render some
service
Classes of Contracts
According
to:
Kinds
perfection
form
nature of
vinculum
cause
risks
involved
name
Nominate contracts
Relativity (Art.1311)
Rule: parties, assigns, heirs
Exceptions:
Stipulation pour autrui accepted by third party
Where third persons comes into possession of the
object of contract creating real rights (Art. 1312)
Where contract is to defraud a third person (Art.
1313)
Where third person induces a contracting party to
violate his contracts (Art. 1314)
Other elements
Natural elements presumed to exist
(like warranty against eviction or hidden
defects)
Accidental elements conditions,
clauses, terms, penalty etc.
Elements of
Consent
1. Concurrence of the offer and the acceptance
Definite offer that may be exactly fixed
Assent to the terms without qualifications or conditions
Conveyed before the death, civil interdiction, insanity, or
insolvency
Qualified acceptance is a counter offer
Perfected when acceptance comes to knowledge of offeror
Offer can be withdrawn anytime before acceptance, unless
option is founded on consideration
If offer made thru agent, accepted when communicated to the
agent
Elements of
Consent
Offer
Offer certain -fixed time, place, manner
of acceptance (Art. 1321)
Offer made by agents (1323)
Effect of death, civil interdiction, insanity,
insolvency, other grounds
Business advertisements
Sale: mere invitations (Art. 1325)
Bidders: mere proposals (Art. 1326)
Acceptance
Acceptance absolute (express or
implied)
Deaf mutes
Modifications of incapacity
Civil Code provisions
- guardianship
- minor misrepresented age
Rules of Court
- civil interdiction;lepers;prodigals etc
Elements of
Consent
3 . I n t e l l i g e n t l y, f r e e l y g i v e n ,
consciously
vices of consent:
mistake, violence, intimidation,
undue influence, or fraud
Causes of vitiating consent vs. causes
of incapacity
simple mistake
On account/calculation shall give rise to
its correction
Burden of proof
Rule: the one alleges fraud/mistake must
prove it
Exceptions:
1. One party is unable to read
2. contract is in a language not understood by
him
- Party enforcing the contract must show that the terms
thereof have been fully explained to the other
Knowledge of risk
No mistake doubt, contingency, risk
Mistake of law
Rule: ignorantia legis non excusat
Exception:
-Mutual error as to the legal effect of an agreement
when the real purpose of the parties is frustrated
Violence?
Factors to determine degree of
intimidation vs. reverential fear
Threat to enforce just/legal claim
INCIDENTAL FRAUD
It should be serious;
It should not have been employed
by both the contracting parties (pari
delicto); and
It should not have been known by
the other contracting party
RELATIVE SIMULATION
Requisites of things
Within the commerce of men
Not impossible (legal or physical)
In existence or capable of coming into
existence
Determinate or determinable without the
need of a new contract
Requirements of services
Within the commerce of men
Not impossible (legal or physical)
Determinate or capable of being made
Cannot be an Object
Intransmissible by their nature
Stipulation
Provision of law
Motive (purely
Must be lawful
- Illegality of cause implies that there is a cause but the
same is unlawful or illegal