FINALS:

CHAPTER 1:
Classification of contracts accdg. to name:
1. Nominate
2. Innominate
a. Barter (I give that you may give)
b. Service (I give that you may do)
c. Employment (I do that you may give)
d. Innominate (I do that you may do)
3rd persons may be affected by a contract:
1. In contracts containing a stipulation in favour of a 3rd person (stipulation pour
autrui)
2. In contracts creating real rights
3. In contracts entered to defraud creditors
4. In contracts which have been violated at the inducement of a third person.
Requisites of stipulation pour autrui
1. The contracting parties by their stipulation must have clearly and deliberately
conferred a favour upon a third person
2. The third person must have communicated his acceptance to the obligor before
its revocation by the oblige or the original parties;
3. The stipulation in favour of the third person should be a part, not the whole, of the
contract;
4. The favourable stipulation should not be conditioned or compensated by any kind
of obligation whatever; and
5. Neither of the contracting parties bears the legal representation or authorization
of the third party for otherwise, the rules of the agency will apply.
Classification of contracts accdg. to perfection:
1. Consensual contracts perfected by mere consent
2. Real contracts perfected by delivery
3. Solemn contracts require compliance with certain formalities prescribed by law
Stages of life of a contract:
1. Preparation or negotiation
2. Perfection or birth
3. Consummation or termination
CHAPTER 2:
Essential requisites of a contract:
1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract
3. Cause of the obligation which is established
Classes of elements of a contract
1. Essential elements
a. Common
b. Special
2. Natural elements
3. Accidental elements
SECTION 1: Consent
Persons who cannot give consent: - contracts entered voidable
1. Un emancipated minors
2. Insane or demented persons
3. Deaf-mutes

Contracts entered into during lucid interval valid

Contracts agreed into a state of drunkness or during a hypnotic spell voidable
Characteristics of consent:
1. It is intelligent
2. It is free and involuntary
3. It is conscious or spontaneous
Vices of consent make contract voidable
1. Error or mistake
2. Violence or force
3. Intimidation or threat or duress
4. Undue influence
5. Fraud or deceit
Mistake of fact to which law refers: vitiate consent
1. The substance of the thing which is the object of the contract; or
2. Those conditions which have principally moved one or both parties to enter
into the contract
3. The identity or qualifications of one of the parties provided the same was the
principal cause of the contract
Mistake of fact which does not vitiate consent (less effective)
1. Error as regards to incidents of a thing or accidental qualities thereof
2. Mistake as to quantity or amount
3. Error as regards the motives of the contract
4. Mistake as regards the identity or qualifications of a party (if it is not related)
5. Error which could have been avoided
Requisites for application of mutual error may vitiate consent
1. The error must be mutual
2. It must be as to the legal effect of an agreement; and
3. It must frustrate the real purpose of the parties
Requisites of intimidation or threat to vitiate consent
1. It must produce a reasonable and well-grounded fear of evil;
2. The evil must be imminent or grave;
3. The evil must be upon his person or property, or that of his spouse, descendants
or ascendants; and
4. It is the reason why he enters into a contract
Undue influence circumstances
1. Confidential, family, spiritual and other relations between the parties
2. Mental weakness
3. Ignorance
4. Financial distress of the person alleged to have been unduly influenced
Requisites of casual fraud to invalidate contract
1. There must be misrepresentation or concealment
2. It must be serious
3. It must have been employed by one of the contracting parties
4. It must be made in bad faith or with intent to deceive
5. It must have induced the consent of the other
6. It must have been alleged and proved by clear convincing evidence
Opinion requisites that it may amount to fraud
1. It must be made by an expert
2. The other contracting party has relied on the experts opinion
3. The opinion turned out to be false or erroneous
Kinds of fraud in the making of contract
1. Casual fraud null/void
2. Incidental fraud damages
Kinds of simulation
1. Absolute simulation null/void
2. Relative simulation reformation
SECTION