Law on Contracts

Question 1

The meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

Answer 1

Contract

Question 2

Meeting of minds between parties on the subject matter and the cause of the contract, even if neither one has been delivered.

Answer 2

Consent

Question 3

No real transaction is intended

fake contract

Answer 3

Absolute Simulation

Question 4

The real transaction is hidden

apparent contract - void, hidden contract - valid if lawful

Answer 4

Relative Simulation

Question 5

Must be present at the time the contract was entered into, otherwise the contract is void.

must be true and valid

Answer 5

Cause of Contracts

Question 6

1. Those entered into by guardians where the ward suffers lesion of more than 1/4 of the value of the things which are objects thereof;
2. Those agreed upon in representation of absentees, if the latter suffer lesion by more than 1/4 of the value of the things which are subject thereof;
3. Those undertaken in fraud of creditors when the latter cannot in any manner claim what are due them;
4. Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants and the court;
5. All other contracts especially declared by law to be subject to rescission.

Answer 6

Rescissible Contracts

Question 7

1. Those where one of the contracting parties is incapable of giving consent
2. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud

Answer 7

Voidable Contracts

Question 8

1. Those entered into in the name of another by one without or acting in excess of authority;
2. Those where both parties are incapable of giving consent;
3. Those which do not comply with the Statute of Frauds

Answer 8

Unenforceable Contracts

Question 9

1. Those whose cause, object or purpose is contrary to law, morals, good customs, public policy or public order;
2. Those whose object is outside the commerce of men;
3. Those which contemplate an impossible service;
4. Those where the intention of the parties relative to the principal object of the contract cannot be ascertained;
5. Those expressly prohibited or declared void by law

Answer 9

Void Contracts

Question 10

1. Those which are absolutely simulated or fictitious;
2. Those whose case or object did not exist at the time of the transaction.

Answer 10

Inexistent Contracts

Question 11

As long as not contrary to law, morals, good customs, public order or public policy.

Answer 11

Autonomy (Liberty or Freedom to stipulate)

Question 12

Both parties must be bound.
Parties cannot revoke or renounce a contract without the consent of the other.

Answer 12

Mutuality

Question 13

Obligations arising from contract have the force of law between the contracting parties and should be complied with in good faith.

Answer 13

Obligatoriness