CHAP 4 (contracts)

Question 1

Reformation

Answer 1

REMEDY ALLOWED BY LAW by means of which a WRITTEN INSTRUMENT IS AMENDED OR RECTIFIED so as to EXPRESS OR CONFORM TO THE REAL AGREEMENT OR INTENTION OF THE PARTIES when by REASON OF MISTAKE, FRAUD, INEQUITABLE CONDUCT, or ACCIDENT, the INSTRUMENT FAILS TO EXPRESS SUCH AGREEMENT OR INTENTION

Question 2

Requisites of reformation.

Answer 2

(1) There is a meeting of the minds of the parties to the contract;

(2) The written instrument does not express the true agreement or intention of the parties;

(3) The failure to express the true intention is due to mistake, fraud, inequitable conduct, or accident;

(4) The facts upon which relief by way of reformation of the instrument is sought are put in issue by the pleadings; and

(5) There is clear and convincing evidence
(which is more than mere preponderance of evidence) of the mistake, fraud, inequitable
conduct, or accident.

Question 3

Mutual mistake

Answer 3

MISTAKE OF FACT that is COMMON TO BOTH PARTIES of the INSTRUMENT which CAUSES THE FAILURE of the instrument TO EXPRESS THEIR TRUE INTENTION

Question 4

Requisites of MUTUAL MISTAKE

Answer 4

1.The mistake must be of fact

2. Such mistake must be proved by clear and convincing evidence;
3. The mistake must be mutual, that is, common to both parties to the instrument; and
4. The mistake must cause the failure of the instrument to express their true intention.

Question 5

Cases when REFORMATION NOT ALLOWED

Answer 5

1. SIMPLE DONATIONS inter vivos where NO CONDITION is IMPOSED
2. Wills
3. When the REAL AGREEMENT is VOID
4. When ONE PARTY has brought an ACTION TO ENFORCE THE INSTRUMENT

Question 6

Donation

Answer 6

ACT OF LIBERALITY whereby a PERSON DISPOSES GRATUITOUSLY of a THING OR RIGHT in FAVOR OF ANOTHER, who accepts it

Question 7

Inter vivos

Answer 7

Donation shall effect DURING HIS LIFETIME

Question 8

Mortis Causa

Answer 8

This kinds of donation takes effect AFTER THE DONOR’S DEATH

Question 9

Will

Answer 9

An act whereby a PERSON IS PERMITTED WITH THE FORMALITIES PRESCRIBED BY LAW to CONTROL TO A CERTAIN DEGREE the DISPOSITION OF HIS ESTATE, to take effect AFTER HIS DEATH

Question 10

Parties ENTITLED TO REFORMATION

Answer 10

(1) Either of the parties, if the mistake is mutual under Articles
1361, 1364, and 1365;

(2) In all other cases, the injured party, under Articles 1362, 1363,
1364, and 1365; and

(3) The heirs or successors in interest, in lieu of the party entitled.