Contract 2 Flashcards
Requisites of contract
There is no contract unless the following requisites concur:
1. Consent of the contracting parties;
2. Object certain which is the subject matter of contract;
3. Cause of the obligation which is established.
Elements of a Contracts
- Essential Elements
- Natural Elements
- Accidental Elements
What is Consent?
Art. 1319. Consent is manifested by the meeting of the offerer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a counter-offer.
Acceptance made by letter or telegram does not bind the offer except from the time it came to his knowledge. The contract, in such case, is presumed to have been entered into in the place where the offer was made.
Define offer
is a unilateral proposition made by one party to another for the celebration of a contract.
For a contract to be certain, a contract must come into existence by the mere acceptance of the offeree without any further act on the offeror’s part.
The offer must be definite, complete and intentional.
Policitacion
or an imperfect promise is merely an offer it cannot be considered as a binding commitment.
Counter-offer
or qualified acceptance.
Where the parties merely exchange offers and counter-offers, no agreement or contract was perfected.
Acceptance by letter of telegram
does not bind offeror except from the time it came to his knowledge
Consent of Corporation
is a juridical person. It cannot act except through its bord of directors as a collective body, which is vested with the power and responsibilitynto decide whether the corporation should enter into contract that will bind the corporation.
Contract of agency
by the contract of agency, a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.
The offerer has allowed the offerree a certain period to accept
The offerer has allowed the offerree a certain period to accept, the offer may be withdrawn at any time before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, as something paid or promised. (NCC)
Persons incapacitated to give consent
- minors
- insane persons
- demented persons and
- Deaf-mutes who did not know how to write.
lucid interval
lucid interval- a brief period during which an insane person regains sanity sufficient to have the legal capacity to contract and act on his own behalf.
Vices of Consent
MIVUF
1. Mistake
2. Violence
3. Intimidation
4. Undue influences and
5. Fraud
Characteristics of consent
- it should be intelligent
2 It should be free - it should be spontaneous
Mistake ?
Misunderstanding of the meaning or implication of something or a wrong action or statement proceeding from a faulty judgment
Distinguished mistake of fact and mistake law
- In mistake of fact, when one or both of the contracting parties believe that the fact exist when in reality it does not, or that such fart does not exist when in reality it does.
While in mistake of law, when one or both of the contracting parties arrive at an erroneous conclusion regarding the interpretation of the question of law or legal effects of certain acts or transaction.
- In Mistake of fact, as a general rule, it is only a mistake of fact which will vitiate consent thus
rendering the contract voidable.
While in mistate of law, does not render the contract voidable because of the well- known principle that ignorance of the law excuses no one from compliance therewith.
Fraud?
Fraud is present when through insidious words on machinations of one of the contracting parties, the other is induced to enter into a contract, which without them, he would not have agreed to.
Mutual error requisites.
Requisites
1. The mistake must be with respect to the legal effects of an agreement
2. The mistake must be mutual
3. The real purpose of the parties must be frustrated.
Requisites of violence
Requisites
1. The force employed to wrest consent must serious or irresistible;
2. It must be the determining cause for the party upon whom it is employed in entering into contract.
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 upon the person or property of his spouse, descendants or ascendants, to give his consent.
Requisites of intimidation
- That the intimidation must be the determining cause of the contract, or must have caused the consent to be given;
- That the threatened act be unjust or unlawful
- That the treat be real and serious, there being an evident disproportion between the evil and the resistance which all men can offer, leading to the choice of the contracts a lesser evil; and
- That it produces a reasonable and well-grounded fear from the fact that person from whom it comes has the necessary means on ability to inflict the threatened injury.
Elements to consider in determining the degree of intimidation
- Age of the person
- Sex of the person
- Condition of the person
Undue influence
There is undue influence when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice.
Circumstances considered (undue influence)
- The confidential, family, spiritual and other relations between the parties, or
- The fact that the person alleged to have been unduly influenced was suffering from mental weakness, or
- The fact that the person alleged to have been unduly influenced was in financial distress.
Casual fraud
There is fraud when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to.
Dolo causante or causal fraud vs. Dolo incidente or incidental fraud
Dolo causante or causal Fraud vs. Dolo incidente or incidental fraud
- Dolo causante or causal fraud, are those
Deception or misrepresentation of a serious character employed by one party and without which the other party would not have entered into the contract.
While in Dolo incidente or incidental fraud, are
Those which are not serious in character and without which the other party would still have entered into contracts. - In dolo causante is the essential cause of the contract,
while dolo incidente refers only to some particular or accident of the obligations. - In dolo causante, are nullity of the contract and the indemnification of damages,
while in dolo incidente, also obliges the person employing it to pay damages.
