CONTRACTS Flashcards
1
Q
WHAT ARE THE ELEMENTS OF A CONTRACT
A
- ESSENTIAL
- NATURAL
- ACCIDENTAL
2
Q
WHAT ARE THE ESSENTIAL ELEMENTS OF A CONTRACT
A
- CONSENT
- OBJEC
- CAUSE
3
Q
CLASSIFIATION OF CONRACTS ACCORDING TO PERFECTION
A
- CONSENSUAL
- REAL
- FORMAL OR SOLEMN
4
Q
CLASSIFIATION OF CONRACTS ACCORDING TO CAUSE
A
- ONEROUS
- GRATUITOUS OR LUCRATIVE
- REMUNERATORY
5
Q
CLASSIFIATION OF CONRACTS ACCORDING TO IMPORTANCE OR DEPENDENCE OF ONE UPON ANOTHER
A
- PRINCIPAL
- ACCESSORY
- PREPARATORY
6
Q
CLASSIFIATION OF CONRACTS ACCORDING TO NAME OR DESIGNATION
A
- NAME
- INNOMINATE
7
Q
CLASSIFIATION OF CONRACTS ACCORDING TO RISK OR FULFILLMENT
A
- COMMUTATIVE
- ALEATORY
8
Q
CLASSIFIATION OF CONRACTS ACCORDING TO THE PARTIES OBLIGED
A
- UNILATERAL
- BILATERAL
9
Q
CLASSIFIATION OF CONRACTS ACCORDING TO SUBJECT MATTER
A
- THINGS
- RIGHTS OR CREDITS
- SERVICES
10
Q
CLASSIFIATION OF CONRACTS ACCORDING TO TIME OF FULFILLMENT
A
- EXECUTED
- EXECUTORY
11
Q
OTHER CLASSIFICATIONS
A
- AUTO-CONTRACT
- CONTRACT OF ADHESION
12
Q
DEFINE AUTO CONTRACT
A
WHERE ONLY ONE PERSON REPRESENTS THE TWO OPPOSITE PARTIES TO THE CONTRACT
13
Q
DEFINE CONRACT OF ADHESION
A
WHERE ONLY ONE PARTY DRAFTED THE CONTRACT
14
Q
STAGES OF A CONTRACT
A
- PREPARATION OR CONCEPTION
- PERFECTION OR BIRTH
- CONSUMMATION OR DEATH OR TERMINATION
15
Q
WHAT ARE THE BASIC PRINCIPLES OF CONTRACT
A
- LIBERTY OF CONTRACT OR FREEDOM TO STIPULATE
- MUTUALITY OF CONTRACTS
- RELATIVITY OF CONTRACTS
- CONSENSUALITY OF CONTRACTS
- OBLIGATORY FORCE OF CONTRACT AND COMPLIANCE IN GOOD FAITH
16
Q
DEFINE THE PRINCIPLE LIBERTY OF CONTRACT OR FREEDOM TO STIPULATE
A
THE CONTRACTING PARTIES MAY STABLISH SUCH STIPULATIONS, CLAUSES, TERMS AND CONDITIONS AS THEY MAY DEEM CONVENIENT, PROVIDED THEY ARE NOT CONTRARY TO LAW, MORALS, GOOD CUSTOMS, PUBLIC ORDER OR PUBLIC POLICY.
17
Q
THE FREEDOM TO ENTER ENTER INTO A CONTRACT IS ONE OF THE LIBERTIES GUARANTEED BY THE STATE SUBECT ONLY TO THE FIVE LIMITATIONS. WHAT ARE THOSE?
A
- SUCH STIPULATION KNOWN AS PACTUM COMMISSORIUM IS VOID FOR BEING CONTRARY TO LAW.
- A STIPULATION IN MORTGAGE CONTRACT PROVIDING FOR A SPECIFIED PRICE (KNOWN AS ‘TIPO OR UPSET PRICE) BELOW WHICH THE MORTGAGED PROPERTY IS NOT SUPPOSED TO BE SOLD AT THE FORECLOSURE SALE IS VOID FOR BEING CONTRARY TO LAW
- AN AGREEMENT TO PAY AN UNCONSCIONABE RATE INTEREST IS VOID FOR BEING CONTRARY TO MORALS
- AN AGREEMENT BY THE DEBTOR TO WORK WITHOUT PAY UNTIL HE COULD FIND MONEY TO PAY THE DEBT IS VOID FOR BING CONTRARY TO MORALS AS TIS AMOUNTS TO INVOLUNTARY SERVITUDE.
- AN AGREEMENT TO HDE A CRIME, TO SUPPRESS EVIDENCE AND TO STIFLE THE PROSECUTION OF THE OFFENDER IS VOID FOR BEING CONTRARY TO PUBLIC POLICY.
18
Q
UNDER THE PRINCIPLE OF CONSENSUALITY OF CONTRACTS, CONTRACTS ARE PERFECTED BY MERE CONSENT EXCEPT TO CONTRACTS WHICH NEED TO COMPLY WITH ADDITIONAL REQUIREMENTS. AND THOSE ARE
A
A. IN REAL CONTRACTS - SUCH AS DEPOSIT, PLEDGE AND COMMODATUM, WHICH ARE PERECTED UPN THE DELIVERY OF THE OBJECT OF THE OBLIGATION
B. IN FORMAL OR SOLEM CONRACTS, WHICH ARE REQUIRED TO BE IN THE FOMR PROVIDED BY LAW, TO BE PERFECTED, SUCH AS THE DONATION OF AN IMMOVABLE WHICH MUST BE IN A PUBLIC INSTRUMENT TOGETHER WITH THE ACCEPTANCE THEREOF; OTHERWISE , THE CONTRACT IS VOID
19
Q
WHAT IS CONSENT
A
IT IS THE MANIFESTATION OF THE MEETING OF THE OFFER AND THE ACCEPTANCE UPN THE THING AND THE CAUE WHICH ARE TO CONSTITUTE THE CONTRACT
20
Q
RULES ON OFFER
A
- THE OFFER MUST BE CERTAIN. IT MUST BE DEFNITE, COMPLETE AND INTENTIONAL
- AN OFFER BECOMES INEFFECTIVE UPON THE DEATH, CIVIL INTERDICTION, INSANITY OR INSOLVENCY OF EITHER PARTY BEFORE ACCEPTANCE IS CONVEYED
- WHEN THE OFFER HAS ALLOWED THE OFFEREE A CERTAIN PERIOD TO ACCEPT, THE OFFER MAY BE WITHDRAWN AT ANY TIME BEFORE ACCEPTANCE BY COMMUNICATION SUCH WITHDRAWAL, EXCEPT WHEN THE OPTION IS FOUNDED UPON A CONSIDRATION AS SOMETHING PAID OR PROMISED.
21
Q
WHAT IS OPTION
A
A CONTRACT WHEREBY THE OFFEROR GIVES THE OFFEREE A CERTAIN PERIOD WITHIN WHICH TO BUY OR NOT TO BU A CERTAN OBJECT FOR A FIXED PRICE. IT MAY OR MAY NOT BE FOR A VALUABLE CONSIDERATION
22
Q
RIGHT OF THE OFERROR TO WITHDRAW THE OFFER
A
IF THERE IS NO CONSIDERATON, THE OFFEROR MAY WITHDRAW THE OFFER AT ANYTIME WITHIN THE OPTION PERIOD PROVIDED THERE HAS NOT YET BEN ANY ACCEPTANCE. IF THERE IS CONSIDERATIO, THE OFFEROR MAY NOT WITHDRA THE OFFER BEFORE THE LAPSE OF THE PERIOD. OTHERWISE, HE WILL BE LIABLE FOR DAMAGES
23
Q
RULES ON ACCEPTANCE
A
- THE ACCEPTANCE MUST BE ABSOLUTE
- ACCEPTANCE MADE BY LETTER OR TELEGRAM DOES NOT BIND THE OFFERER EXCEPT FROM THE TIME IT CAME TO HIS KNOWLEGDE. THE CONTRACT IN SUCH A CASE IS PRESUMED TO HAVE BEEN ENTERED INTO TH PLACE WHERE THE OFFER WAS MADE.
- ACCEPTANCE MAY BE EXPRESS OR IMPLIED
- AN OFFER MADE THROUGH AN AGENT IS ACCEPTED FROM THE TIME IT IS COMMUNICTED TO HIM
24
Q
RULES ON CONSENT
A
- THE PARTIES MUST HAVE CAPACITY TO ENTER INTO A CONTRACT
- CONTRACTS AGREED TO IN A STATE OF DRUNKENNESS OR DURING A HYPNOTIC SPELL ARE VOIDABLE
- A CONTRACT WHERE CONSENT IS GIVEN THROUGH MISTAKE, VIOLENCE, INTIMIDATION, UNDUE INFLUENCE, OR FRAUD IS VOIDABLE.
25
CAUSES THAT VITIATE CONSENT OR VICES OF CONSENT
1. MISTAKE
2. VIOLENCE
3. INTIMIDATION
4. UNDUE INFLUENCE
5. FRAUD
26
WHEN MISTAKE WIL INVALIDATE CONSENT
1. IF THE MISTAKE REFERS TO THE SUBSTANCE OF THE THING WHICH IS THE OBJECT OF THE CONTRACT
2. IF THE MISTAKE REFERS TO THE IDENTITY OR QUALIFICATIONS OF ONE OF THE PARTIES IF SUCH IDENTITY OR QUALIFICATIONS OF ONE OF THE PARTIES IF SUCH IDENTITY OR QUALIFICATIONS HAVE BEEN THE PRINICIPAL CAUSE OF THE CONTRACT
3. IF THE MISTKAE REFERS TO THE LEGAL EFFECT OF AN AGREEMENT WHEN THE REAL PURPOSE OF THE PARTIES IS FRUSTRATED AND THE SAME IS MUTUAL
27
WHEN MISTAKE DOES NOT VITIATE CONSENT
1. IF THE MISTAKE REFERS TO A SIMPLE MISTAKE OF ACCOUNT WHICH SHALL ONLY BE CORRECTED
2. IF THE PARTY ALLEGING IT KNEW THE DOUBT, CONTINGENCY OR RISK AFFECTING THE OBJECT OF THE CONTRACT
28
WHEN VIOLENCE VITIATE CONSENT
WHEN IN ORDER TO WREST CONSENT, SERIOUS OR IRRESISTIBLE FORCE IS EMPLOYED. THIS IS TRUE ALTHOUGH IT MAY HAVE BEEN EMPLOYED BY A THIRD PERSON WHO DIDT NOT TAKE PART IN THE CONTRACT
29
WHEN INTIMIDATION VITIATES CONSENT
WHEN ONE OF THE CONTRACTING PARTIES IS COMPELLED BY A 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 COSENT. THS INTIMIDATTION EXISTS ALTHOUGH IT MAY HAVE BEEN EMPLOYED BY A THIRD PERSON WHO DID NOT TAKE PART IN THE CONTRACT
30
FACTORS TO BE CONSIDERED IN DETERMINING THE DEGREE OF INTIMIDATION
1. AGE
2. SEX
3. CONDITION OF THE PERSON
31
WHEN NO INTIMIDATION EXISTS
IN CASE OF THREAT TO ENFORCE ONE'S CLAIM THROUGH COMPETENT AUTHORITY, IF THE CLAIM IS JUST OR LEGAL
32
WHEN UNDUE INFLUENCE VITIATES CONSENT
WHEN A PERSON TAKES IMPROPER ADVANTAGE OF HIS POWER OVER THE WILL OF ANOTHER, DEPRVING THE LATTER OF A REASONBLE FREEDOM OF CHOICE. THE INFLUENCE MUST HAVE SO OVERPOWERED OR SUBJUGATED THE MIND OF A CONTRACTING PARTY AS TO DESTROY HIS FREE AGENCY, MAKING HIM EXPESS THE WIL OF ANOTHER RATHER THAN HIS OWN.
33
FACTORS TO BE CONSIDERED IN DETERMINING THE EXISTENCE OF UNDUE INFLUENCE
1. CONFIDENTIAL, FAMILY, SPIRITUAL AND OTHER RELATIONS OF THE PARTIES
2. MENTAL WEAKNESS
3. IGNORANCE
4. FINANCIAL DISTRESS OF THE PERON ALLEGED TO HAVE BEEN UNDULY INFLUENCED
34
REQUISITES TO MAKE A CONTRACT VOIDABLE BY REASON OF FRAUD
1. THE FRAUD SHOULD BE SERIOUS
2. THE FRAUD SHOULD HAVE NOT BEEN EMPLOYED BY BOTH CONTRACTING PARTIES
35
CASES WHERE WHEN NO FRAUD EXISTS
A. IN CASE OF THE USUAL EXAGGERATIONS IN TRADE, WHEN THE OTHER PARTY HAD AN OPPORTUNITY TO KNOW THE FACTS
B. IN CASE OF MERE EXPRESSION OF AN OPINION, UNLESS MADE BY AN EXPERT AND THE OTHER PARTY HAS RELIED ON THE FORMER'S SPECIAL KNOWLEDGE.
C. IN CASE OF MISREPRESENTATION BY A THIRD PERSON UNLESS SUCH MISREPRESENTATON HAS CREATD SUBSTANTIAL MISTAKE AND THE SAME IS MUTUAL
D. IF THE MISREPRESENTATION WAS MADE IN GOOD FAITH. HOWEVER THE SAME MAY CONSTITUTE ERROR
36
KINDS OF FRAUD (DOLO) IN OBTAINING CONSENT
1. CAUSAL FRAUD OR DOLO CAUSANTE
2. INCIDENTAL F RAUD OR DOLO INCIDENTE
37
WHAT IS CAUSAL FRAUD
FRAUD WITHOUT WHICH CONSENT WOULD NOT HAVE BEEN GIVEN. IT RENDERS THE CONTRACT VOIDABLE
38
WHAT IS INCIDENTAL FRAUD
FRAUD WITHOUT WHICH CONSENT WOULD HAVE STILL BEEN GIVEN BUT THE PERSON GIVNG IT WOULD HAVE AGREED ON DIFFERENT TERMS.
39
WHAT IS SIMULATED CONTRACT
ONE THAT DOES NOT INTEND TO HAVE ANY LEGAL EFFECT ON OR A CHANGE IN THE JURIDICAL SITUATION OF THE PARTIES
40
WHAT IS RELATIVELY SIMULATED CONTRACT
ONE WHERE THE PARTIES CONCEAL THEIR TRUE AGREEMENT. THE PARTIES ARE BOUND BY THEIR REAL AGREEMENT PROVIDED IT DOES NOT PREJUDICE A THIRD PERSON AND IS NOT INTENDED FOR ANY PURPOSE CONTRARY TO LAW, MORALS, GOOD CUSTOS, PUBLIC ORDER OR PUBLIC POLICY.
41
THE CONTRACT INVOLVING FUTURE INHERITANCE IS VOID, EXCEPT, WHEN THE FOLLOWING REQUISITES CONCUR
1. THE SUCCESSION HAS NOT BEN OPENED
2. THE OBJECT OF THE CONTRACT FORMS PART OF THE INHERITANCE
3. THE PROMISSOR HAS, WITH RESPECT TO THE OBJECT, AN EXPECTANCY OR RIGHT WHICH IS PURELY HEREDITARY IN NATURE.
42
REQUISITES OF OBJECT OF A CONTRACT
1. IT MUST BE WITHI THE COMMERCE OF MEN
2. IT MUST BE TRANSMISSIBLE
3. IT MUST NOT BE CONTRARY TO LAW, MORALES, GOOD CUSTOMS, PUBLIC ORDER OR PUBLIC POLICY
4. IT MUST NOT BE IMPOSSIBLE
5. IT MUST BE DETERMINATE AS TO ITS KIND OR IF ITS QUANTITY IS NOT DETERMINATE, IT MUTS BE POSSIBLE TO DETERMINE THE SAME WITHOUT THE NEED OF A NEW CONTRACT BETWEEN THE PARTIES
43
REQUISITES OF CAUSE
1. IT MUST EXIST
2. IT MUST BE LAWFUL
3. IT MUST BE TRUE
44
CLASSIFICATION OF DEFECTIVE CONTRACTS
1. RESCISSBLE CONTRACTS
2. VOIDABLE CONTRACTS
3. UNENFORCEABLE CONTRACT
4. VOID CONTRACT
45
WHAT IS RESCISSBLE CONTRACT
ONE WHICH HAS ALL THE ESSENTIAL REQUISITES OF A CONTRACT BUT WHICH MAY BE SET ASIDE BY REASON OF EQUITY ON ACCOUNT OF DAMAGE TO ONE OF THE PARTIES OR UPON THE THIRD PERSON
46
REQUISITES OF RESCISSIBLE PAYMENT
1. THE DEBTOR IS INSOLVENT
2. THE OBLIGATION IS NOT YET DUE
3. THE DEBTOR MAKES THE PAYMENT
47
REQUISITES FOR RESCISSION
1. THE PARTY SUFFERING DMAGE MUST HAVE NO OTHER LEGAL MEANS TO OBTAIN REPARATION FOR THE SAME
2. THE PARTY DEMANDING RESCISSION MUST BE ABLE TO RETURN WATHEVER HE MAY BE OBLIGED TO RESTORE
3. THE THING OBJECT OF THE CONTRACT MUST NOT BE LEGALLY IN THE POSSESSION OF A THIRD PERSON WHO ACTE IN GOOD FAITH
4. THE ACTION FOR RESCISSION MUST BE BROUGHT WITHIN THE PERIOD ALLOWED BY LAW.
PRESCRIPTIVE PERIOD IS 4 YRS FROM THE DATE OF THE CONTRACT, EXCEPT IN THE FF:
A. FOR PERSONS UNDER GUARDIANSHIP - 4 YRS FROM TERMINTION OF INCAPACITY
B. FOR ABSENTEES - 4 YRS FROM THE IME THE ABSENTEE'S DOMICILE IS KNOWN
48
EXTEN OF RESCISSION
SHALL ONLY BE TO THE EXTENT NECESSARY TO COVER THE DAMAGES CAUSED
49
KINDS OF ALIENATIONS IN FRAUD OF CREDITORS
1. ALIENATIONS BY GRATUITOUS TITLE
2. ALIENATIONS BY ONEROUS TITLE
50
WHAT IS ALIENATIONS BY GRATUITOUS TITLE
ARE PRESUMED TO HAVE BEEN ENTERED INTO IN FRAUD OF CREDITORS IF THE DEBTOR DID NOT RESERVE SUFFICIENT PROPERTY TO PAY ALL DEBTS CONTRACTED BEFORE THE DONATION
51
WHAT S ALIENATIONS BY ONEROUS TITLE (SUCH AS SALE OR EXCHANGE)
ONEROUS ALIENATIONS ARE PRESUMED FRAUDULENT WHEN MADE BY PERSONS AGAINST WHOM SOME JUDGMENT HAS BEEN RENDERED IN ANY INSTANCE OR SOME WRIT OF ATTACHMENT HAS BEEN ISSUED. THE DESCISSION OR ATTACHMENT NEED NOT REFER TO THE PROPERTY ALIENATED, AND NEED NOT HAVE BEEN OBTAINED BY THE PARTY SEEKING RESCISSION
52
LIABILITY OF PERSON ACQUIRING THINGS IN ALIENATIOS IN FRAUD OF CREDITORS ; IF PURCHASE WAS MADE IN BAD FAITH
> THE PURCHASER IN BAD FAITH SHALL INDEMNIFY THE CREDITORS FOR DAMAGES SUFFERED BY THEM ON ACCOUNT OF THE ALIENATION WHENEVER DUE TO ANY CAUSE, IT WOULD BE IMPOSSIBLE FOR HIM TO RETURN IT.
> THIS RULE APPLIES EVEN IN THE CAUSE OF THE LOSS IS A FORTUITIOUS EVENT
> IF THERE ARE TWO OR MORE ALIENATIONS, THE FIRST ACQUIRER SHALL BE LIABLE FIRST, AND SO ON SUCCESSIVELY PROVIDED THEY AE ALSO IN BAD FAITH
53
LIABILITY OF PERSON ACQUIRING THINGS IN ALIENATIOS IN FRAUD OF CREDITORS ; IF PURCHASE WAS MADE IN GOOD FAITH
> PURCHASER SHALL NOT BE LIABLE NOTWITHSTANDING THE FRAUDULENT INTENTIN OF THE DEBTOR IN DISPOSING THE PROPERTY. NO RESCISSION
> IF THERE ARE SUBSEQUENT TRANSFERS, THE TRANSFEREES SHALL NOT BE LIABLE VEN IF THEY WERE IN BAD FAITH
54
DEFINE VOIDABLE CONTRACT
IS ONE THAT IS DEFECTIVE BY REASON OF INCAPACITY OR VITIATED CONSENT OF ONE TO THE PARTIES. IT IS BINDING UNLESS ANNULLED BY A PROPER ACTION IN COURT IT IS SUSCEPTIBLE OF RATIFICATION
55
CASES THAT MAKES THE CONTRACT VOIDABLE OR ANNULLABLE
1. THOSE WHERE ONE OF THE PARTIES IS INCAPABLE OF GVING CONSETN TO A CONTRACT
A. UNEMANCIPATED MINORS
B. INSANE OR DEMENTED PERSONS
C. DEAF-MUTES WHO DO NOT KNOW
HOW TO WRITE
2. THOSE WHERE THE CONSENT IS VITITAED BY MISTAKE, VIOLENCE, INTIMIDATION, UNDUE INFLUENCE OR FRAUD
3. THOSE WHERE CONSENT IS GIVEN IN STATE OF DRUNKENNESS.
4. THOSE WHERE CONSENT IS GIVEN DURING A HYPNOTIC SPELL
56
WHEN ANNULMENT MUST BE BROUGHT; OTHERISE THE CONTRACT CAN NO LONGER BE SET ASIDE
THE ANNULMENT MUST BE BROUGHT WITHIN FOUR YEARS WHICH PERIOD SHALL BEGIN
A. IN CASE OF INTIMIDATION, VIOLENCE OR UNDUE INFLUENCE, FRM THE TIME OF DEFECT IN THE CONSENT CEASES
B. IN CASE OF MISTAKE OR FRAUD, FROM THE TIME OF DISCOVERY OF THE SAME
C. IN CASES OF MINORITY OR OTHER INCAPACITY OF A PARTY, FROM THE TIME GUARDIASHIP CEASES
57
WHO MAY BRING ACTION FOR ANNULMENT
1. TH GUARDIAN OF THE INCAPACITATED PERSON DURING THE LATTER'S INCAPACITY
2. THE INCAPACITATED PERSON AFTER HE HAS ATTAINED CAPACITY
3. THE PARTY WHOSE CONSENT IS VITIATED BY MISTAKE, VIOLENCE, INTIMIDATION, UNDE INFLUENCE OR FRAUD.
4. CAPACITATED PERSON WHO CANNOT SEEK THE ANNULMENT OF THE CONTRACT ON THE GROUND OF THE INCAPACITY OF THE OTHER PARTY
58
WHAT IS THE EFFECT OF LOSS OF THING WHILE IN THE POSSESSION OF THE PARTY WHO HAS RIGHT TO BRING THE ACTION FOR ANNULMENT
IF LOST THROUGH HIS FAULT - ACTION FOR ANNULMENT IS EXTINGUISHED, WHETHER SUCH PARTY IS INCAPACITATED OR HIS CONSENT IS VITIATED
IF LOST WITHOUT HIS FAULT AND SUC PARTY IS INCAPACITATED - HE CAN STILL BRING ACTION FOR ANNULMENT . HE IS REQUIRED TO RETURN THE VALUE OF HE THING AND ITS FRUITS AND ONLY UP TO THE EXTENT THA HE HAS BEEN BENEFITED
59
DEFINE RATIFICATION
IS THE ADOPTION OR AFFIRMATION OF A CONTRAT WHICH IS DEFECTIVE BECAUSE OF A PARTY'S VITIATED CONSENT OR INCAPACITY
60
WHO MAY RATIFY
1. THE GUARDIAN OF THE INCAPACITATED PERSN DURING THE LATTER'S INCAPACITY
2. THE INCAPACITATED PERSON AFTER HE HAS ATTAINED CAPACITY
3. THE PARTY WHOSE CONSENT IS VITITAED BY MISTAKE, VIOLNCE, INTIMIDATION, UNDUE INFLUENCE OR FRAUD
61
EFFECTS OF RATIFICATION
1. IT EXTINGUIHES THE ACTION TO ANNU A VODIABLE CONTRACT
2. IT CLEANSES THE CONTRACT FROM ALL DEFECTS FROM THE MOMENT IT WAS CONSTTUTED. IN OTHER WORDS, THE CONTRACT IS VALIDATED FROM INCEPTION
62
DEFINE UNENFORCEABLE CONTRACT
CONTRACT THAT CANNOT BE ENFORCED UNLESS RATIFIED
63
WHAT ARE THOSE UNENFORCEABLE CONTRACTS
1. THOSE ENTRED IN THE NAME OF ANOTHER PERSON BY ONE WHO HAS BEEN GIVEN NO AUTHORITY OR LEGAL REPRESENTATION, OR HWO HAS ACTED BEYOND HIS POWERS.
2. THOSE THAT DO NOT COMPLY WITH THE STATUTE OF FRAUDS
64
DEFINE STATUTE OF FRAUDS
> IS A STATUTE DESIGNED TO PREVENT THE COMMISSION OF FRUD BY REQUIRING CERTAIN CONTRCATS TO BE IN WRITING AND BE SUBSCRIBED BY THE PARTY CHARGED
> IT APPLIES ONLY TO WHOLLY EXECUTORY CONTRACTS
> CONTRACTS INFRINGING THE STATUE OF FRAUDS CANNOT BE SUED UPON EITHER FOR DAMAGES OR SPECIFIC PERFORMANCE
65
UNDER STATUTE OF FRAUDS, THESE CONTRACTS MUST BE IN WRITING TO ENFORCEABLE
A. AN AGREEMENT THAT BY ITS TERMS IS NOT TO BE PERFORMED WITHIN A YEAR FRO THE MAKING THEREOF
B. A SPECIAL PROMISE TO ANSWER FOR THE DEBT, DEFAULT OR MISCARRIAGE OF ANOTHER. THIS IS KNOWN AS GUARANTY
C. AN AGREEMENT IN CONSIDERATION OF MARRIAGE, OTHER THAN MUTUAL PROMISE TO MARRY
D. SALE OF GOODS, CHATTELS OR THINGS IN ACTION AT A PRICE NOT LESS THAN 500.00
E. AN AGREEMENT FOR THE LEASING OF A REAL PROPERTY OR OF AN INTEREST THEREIN FOR MORE THAN A YEAR
F. SALE OF REAL PROPERTY OR AN INETREST THEREIN
G. A REPRESENTATION AS TO THE CREDIT OF THIRD PERSON
66
CONTRACTS UNDER STATUTE OF FRAUDS ARE SUSCEPTIBLE OF RATIFICATION UNDER THE FOLLOWING MEANS
1. BY FAILUR TO OBJECT TO THE PRESENTATION OF ORAL EVIDENC TO PROVE THEM
2. BY THE ACCEPTANCE OF BENEFITS UNDER THEM. THIS WILL MAKE THE CONTRACT EXECUTED IN PART
67
DEFIN VOID CONTRACT
IS ONE WHICH HAS NO FORCE AND EFFECT FROM THE VERY BEGINNING, AS IT HAD NEVER BEEN ENTERED INTO, AND WHICH CANNOT BE VALIDATED EITHER BY TIME OR RATIFICATION
68
CHARACTERISTICS OF VOID CONTRACT
1. CANNOT BE RATIFIED
2. THE RIGHT TO SET UP THE DEFENSE OF ILLEGALITY CANNOT BE WAIVED
3. THE ACTION OR DEFENSE FOR THE DECLARATION OF THE INEXSITENCE OF A CONTRACT DOES NOT PRESCRIBE
4. THE DEFENSE OF ILLEGALITY OF CONTRACTS IS NOT AVAILABLE TO THIRD PERSONS WHOSE INTERESTS ARE NOT DIRECTLY AFFECTED
5. A CONTRACT IS VOID AND INEXISTENT IF IT IS THE DIRECT RESULTS OF A PREVIOUS ILLEGAL CONTRACT
69
THE FOLLOWING CONTRACTS ARE VOID FROM THE VERY BEGINNING
1. THOSE WHOSE CAUSE, OBJECT OR PURPOSE IS CONTRARY TO LAW, MORALS, GOOD CUSTOMES, PUBLIC ORDER OR PUBLIC POLICY
2. THOSE WHICH ARE ABSOLUTELY SIMULATED OR FICITIOUS
3. THOSE WHOSE OBJECT OR CAUSE DID NOT EXIST AT THE TIME OF TRANSACTION
4. THOSE WHOSE OBJECT IS OUTSIDE THE COMMERCE OF EMN
5. THOSE WHICH CONTEMPLATE AN IMPOSSIBLE SERVICE
6. THOSE WHERE THE INTENTION OF THE PARTIES RELATIVE TO THE PRINCIPAL OBJECT OF THE CONTRACT CANNOT BE ASCERTAINED
7. THOSE EXPRESSLY PROHIBITED OR DECLARED VOID BY LAW SUCH AS
A. A CONTRACT OF DONATION BETWEEN SPOUSES DURING THE MARRIAGE (EXCPT MODERATE ONES MADE ON THE OCCASION OF A FAMILY REJOICING
B. A CONTRACT OF SALE BETWEEN SPOUSES (EXCEPT WHEN THERE IS SEPERATION OF PROPERTY)
C. A CONTRACT WHICH STIPULATES THAT HOUESHOL SERVICE SHALL BE WITHOUT ANY COMPENSATION
D. A CONTRACT UPON FUTURE INHERITANCE ( EXCEPT IN CASES PROVIDED BY LAW SUCH AS IN THE MARRIAGE SETTLEMENTS)
70
THE EFFECT WHERRE THE CONTRACT IS A CRIMINAL OFFENSE AND BOTH PARTIES AR GUILTY
1. THEY SHALL HAVE NO RIGHT OF ACTION AGAINST EACH OTHER
2. BOTH SAHLL BE CRIMINALLY PROSECUTD
3. THE EFFECTS AND INSTRUMENTS OF THE CRIME (THE THINGS AND PRICE OF THE CONTRACTS) SHALL B CONFISCATED IN FAVOR OF THE GOVERNMENT
71
THE EFFECT WHERRE THE CONTRACT IS A CRIMINAL OFFENSE AND ONLY ONE PARTY IS GUILTY
1. THE GUILTY PARTY WIL BE CRIMINALLY PROSECUTED
2. NEITHER ONE MAY COMPEL THE OTHER TO COMPLY WITH HIS UNDERTAKING
3. THE INSTRUMENTS WILL BE CONFISCATED IN FAVOR OF THE GOVERNMENT
4. THE INNOCENT PARTY SHALL NOT BE BOUND TO COMPLY WITH HIS PROMISE IF HE HAS NO YET GIVEN ANYTHING, AND IF HE HAD GIVEN, HE MAY CLAIM FOR IST RETURN
72
THE EFFECT WHERRE THE CONTRACT IS NOT A CRIMINAL OFFENSE AND ONLY ONE PARTY IS GUILTY
1. THE GUILTY PARTY CANNOT RECOVER WHAT HE HAS GIVEN NOR CAN HE ASK FOR THE FULFILLMENT OF HAT HAS BEEN PROMISED HIM
2. THE INNOCENT PARTY MAY EMAND THE RETURN OF WHAT HE HAS GIVEN WITHOUT ANY OBLIGATION TO COMPLY WITH HIS PROMISE
73
THE EFFECT WHERRE THE CONTRACT IS NOT A CRIMINAL OFFENSE AND BOTH PARTIES ARE GUILTY
NEITHER MAY RECOVER WHAT HE HAS GIVEN OR DEMAND THE PERFORMANCE OF THE OTHER'S UNDRTAKING
74
DEFINE PARI DELICTO
IS A UNIVERSAL DOCTRINE WHOCH HOLD THAT NO ACTION ARISES, IN EQUITY OR LAW, FROM AN ILLEGAL CONTRACT; NO SUIT CAN BE MAINTAINED FOR ITS SPECIFIC PERFORMANCE, OR TO RCOVER THE PROPERTY AGREED TO BE SOLD FOR ITS VIOLATION; AND WHERE THE PARTIES ARE IN PARI DELICTO, NO AFFIRMATIVE RELIEF OF ANY KIND WLL BE GIVEN TO ONE AGAINTS THE OTHER
75
EXCEPTIONS TO THE RULE WHERE RECOVERY BY EITHER PARTY ARE NOT ALLOWED IF BOTH PARTIES ARE IN PARI DELICTO
1. THE PAYOR MAY RECOVER INTEREST HE PAID IN EXCESS OF THE INTEREST ALLOWD BY USURY LAWS TOGETER WITH INETREST FROM THE DATE OF PAYMENT
2. A PARTY MAY RECOVER, IF PUBLIC INTEREST WILL BE SUBSERVED, MONEY OR PROPERTY DELIVERED FOR ILLEGAL PURPOSE PROVIDED HE REPUDIATES THE CONTRACT BEFORE THE PURPOSE HAS BEEN ACCOMPLISHED OR BEFORE ANY DAMAGE HAS BEEN CAUSE TO A THIRD PERSON
3. AN INCAPACITATED PERSON WHOS IS A PARTY TO AN ILLEGAL CONTRACT MAY RECOVER, IF THE INTEREST OF JUSTICE SO DEMANDS, MONEY OR PROPERTY DELIVERED BY HIM
4. A PERSON MAY RECOVER, IF PUBLIC POLICY IS THEREBY ENHANCED, WHAT HE HAS PAID OR DELIVERED, IF THE AGREEMENT IS NOT ILLEGAL PER SE BUT IS MERLY PROHIBITED, AND THE PROHIBITION BY LAW IS DESIGNED FOR HIS PROTECTION
5. ANY PERSON MAY RECOVER ANY MOUNT HE HAS PAID IN EXCESS OF THE PRICE FIXED BY LAW FOR ANY ARTICLE OR COMMODITY
6. A LABORER MAY DEMAND ADDITIONAL COMPENSATION FOR SERVICE RENDERED BEYOND THE MAXIMUM NUMBER OF HOURS OF LABOR IN A CONTRACT WHERE HE UNDERTAKES TO WORK LONGER THAN THE MAXIMUM HOURS FIXED.
7. A LABORER MAY RECOVER THE-DEFICIENCY IN A CONTRACT WHERE HE ACCEPTS A WAGE LOWER THAN THE MINIMU WAGE SET BY LAW.
76
WHAT ARE THE CERTAIN CONTRACTS THAT MUST BE IN A CERTAIN FORM TO BE VALID
1. CONTRACT OF DONATION OF IMMOVABLE - MUST BE IN A PUBLIC INSTRUMENT TOGETHER WITH THE ACCEPTANCE
2. CONTRACT OF DONATION OF PERSONAL PROPERTY WHOS VALUE EXCEEDS 5,000 - MUST BE IN WRITING TOGETHER WITH THE ACCEPTANCE OF DONEE
3. AUTHORITY OF THE AGENT TO SELL A PIECE OF LAND - MUST BE IN WRITING, OTHERWISE VOID
4. CONTRACT OF PARTNERSHIP WHERE IMMOVABLE PROPERTY IS CONTRIBUTED - MUST BE IN A PUBLIC INSTRUMENT TO WHICH ATTACHED A SIGNED INVENTORY OF THE IMMOVABLE PROPERTY
77
WHAT IS REFORMATION
IS A REMEDY IN EQUITY BY MEANS OF WHICH A WRITTEN INSTRUMENT IS MADE OR CONSTRUED SO AS TO EXPESS OR CONFRM TO THE REAL INTENTION OF THE PARTIES WHEN SOME ERROR OR MSITAKE HAS BEEN COMMITTED
78
REQUISITES OF FORMATION
1. THERE MUST BE A MEETING OF MINDS OF THE PARTIES TO THE CONTRACT
2. THE TRUE INTENTION OF THE PARTIES IS NOT EXPRESSED IN THE INSTRUMENT
3. THE REASON THEREFOR IS DUE TO MISTKE, FRAUD, INEQUITABLE CONDUCT OR ACCIDENT.
79
WHO MAY ASK FOR REFORMATIO
1. IF THE MISTAKE WAS MUTUAL, BY THE EITHER PARTY, OR HIS SUCCESSORS IN INTEREST, SUCH AS HIS HEIRS OR ASSIGNS
2. IN OTHER CASES, BY THE INJURED PARTY, OR HIS HEIRS OR ASSIGNES
80
WHEN AN INSTRUMENT MAY BE REFORMED
1. WHEN A MUTUAL MISTAKE OF THE PARTIES CAUSES THE FAILURE OF THE INSTRUMENT TO DISCLOSE THEIR AGREEMENT
2. WHEN ONE PARTY WAS MISTAKEN AND THE OTHER ACTED FRAUDULENTLY OR INEQUITABLY IN SUCH A WAY THAT THE INSTRUMENT DOES NOT SHOW THEIR TRUE INTENTION.
3. WHEN A PARTY WAS MISTAKEN AND THE OTHER KNEW OR BELIEVED THAT THE INSTRUMENT DID NOT STATE THEIR REAL AGREEMENT.
4. WHEN THROUGH THE IGNORANCE, LACK OF SKILL, NEGLIGENCE OR BAD FAITH ON THE PART OF THE PERSON DRAFTING THE INSTRUMENT OR OF THE CLER OR TYPIST, THE INSTRUMENT DOES NOT EXPRESS THE INTENTION OF THE PARTIES
5. IF TWO PARTIES AGREE UPON THE MARRIAGE OR PLEDGE OF REAL OR PERSONAL PROPERTY, BUT THE INSTRUMENT STATES THAT THE PROPERTY IS SOLD ABSOLUTELY OR WITH RIGHT OF REPURCHASE
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