NOTES- CONTRACTS
Article 1305-1317
1. Definition of Contract- Article 1305
2. Contract is derived from Latin word “contractus”
3. Elements of a Contract
4. Consensual Contract- perfected by mere consent.
Example
5. Real Contract- perfected by delivery. Example
6. Formal or Solemn- Example
7. Stages of Contract
8. 5 Basic Principles of contract
9. Pactum Commissorium
10.] The Principle of Freedom- Article 1306
11.] 5 limitations on the nature of stipulations of
contracts
12. Mutuality of Contracts- Article 1308
13. Principle of Relativity- Article 1310
14. Stipulation pour autrui- a stipulation in favor of
a third party
15. Consensuality of conracts- Article 1315
CONSENT Article 1318 to Article 1346
`16.] Essential requisites of Contract- Article 1318
a. consent
b. object
c. cause
17. Consent- Article 1319
18. Counter-officer- if the acceptance is qualified or
has a condition.
19. For an offer to be certain it must NOT be vague,
misleading or made as a joke.
20. Acceptance may be express of implied. Article
1320
21. An offer becomes ineffective-Article 1323
a. death
b. civil interdiction
c.insanity
22. What is Option-
23. They cannot give consent- Article 1327
24.] Unemancipated minors- they have not been
emancipated by marriage, attainment of age of
majority or by parental or judicial authority.
25. Contracts entered into during lucid interval are
valid.
26. Contracts entered into in a state of drunkenness
or during a hypnotic spell are voidable. Article 1328
27. Contract where consent is given through MISTAKE,
VIOLENCE, INTIMIDATION, UNDUE INFLUENCE, OR
FRAUD IS VOIDABLE. Article 1330.
28. CAUSES OF VITIATED CONSENT. Article 1330.
29. MISTAKE- 1331
30. VIOLENCE when in order to wrest consent, serious
or irresistible force is employed. Article 1335
31. INTIMIDATION when one of the contracting parties
is compelled by reasonable and well-grounded fear of
an imminent and grave evil upon his person or
property or his family. Article 1335
32. Undue influence- Article 1337
33. FRAUD- Article 1338
34. Failure to disclose facts constitute fraud. Article
1339
35. Usual exaggerations in trade are not fraudulent.
Article 1340.
36. Mere expression of an opinion does not signify
FRAUD. Article 1341.
37. Incidential fraud- Those which are not serious in
character and without which the other party would
still entered into the contract.
38. Simulation of a contract- Article 1345
OBJECT Article 1347- 1349
40. OBJECT- Article 1340
41. No contract may be entered into upon future
inheritance. Article 1340
42. Outside the commerce of man, such as sidewalks,
public plazas, public bridges, cannot be the object of
contract
43. Impossible things or services cannot be the object
of contracts. Article 1348
CAUSE OF CONTRACT Article 1350-1355
44. Cause- It is the essential and impelling reason
why a party assumes an obligation. Article 1350
45. Contracts without cause or with unlawful cause
produce no effect whatsoever. Article 1352
46. Lesion- Article 1355
FORM OF CONTRACTS 1356
47.] 1356. In general, form does not matter for the
validity of a contract. It is enough that there be
consent, subject matter, and cause. Article 1356
48.] 1358. The following must appear in a public
instrument. No need to memorize. Just familiarize.
True or false yan.
a. For the creation, transmission, modification of
extinguishment of real rights
b. cession, repudiation or renunciation of
hereditary rights or conjugal partnership.
c. The power to administer property
d. Cession of actions or rights proceeding from
an act appearing in a public instrument.
e. All other contract where the amount exceed
500 pesos
REFORMATION OF INSTRUMENT Article 1359
49. Reformation of instrument-familiarize the
definition
50. Reformation may be had in the following:
a. mistake
b. fraud
c.inequitable conduct
d. accident
51. Article 1366 No reformation in the following:
Memorize
a. Simple donation inter vivos
b. Will
c. When the real agreement is void
INTEPRETATION OF CONTRACT- Article 1370
52. Article 1370- Just familiarize the article
53. Article 1377- Interpretation to be against the
party who caused the obscurity.
DEFECTIVE CONTRACTS
54. Four kinds of defective contracts
55. Study the definition of each defective contracts
RESCISSIBLE CONTRACTS
1380 Rescission-familiarize the definition
1381- What are examples of rescissible contracts
a. lesion
b. In representation of Absentees
c. Those undertaken in fraud of creditors
d. Things in litigation
e. All other contracts specially declared by law to
be subject of rescission
VOIDABLE CONTRACTS
1390. Grounds for Annulment of Contract
a. Incapacity to consent
b. vitiated consent
1391- Prescriptive period for Annulment of Contract-
4 years
1392. Ratification extinguishes the action to annul a
voidable contract
1396. Ratification cleanses the contract from all its
defects from the moment it was constituted.
UNENFORCEABLE CONTRACTS
1403. What are the unenforceable contracts
a. Unauthorized contracts
b. Those that do not comply with the Statute of
Frauds
c. Both parties are not capable of giving consent
-Purpose of Statue of Frauds- to prevent fraud
and not to encourage the same
- Statute of frauds means that a particular
contract must be in writing such as:
1. Agreement that by its terms is not to be
performed within a year from the making thereof
2. Special promise to answer for the debt,
default, or miscarriage of another.
3. Sale more than 500 pesos
4. lease contract more than 1 year
5. Representation as to the credit of a third
person
VOID CONTRACTS
1409. Void contract cannot be ratified
No contract at all
Can be assailed by anybody.
1411. pari delicto- both parties at fault
