OBLICON M6

Question 1

3 Elements of a Contract

Answer 1

1. Natural Elements - those which are derived from the very nature of a contract, as a consequence, ordinarily accompany the same.
2. Essential Elements - those without which there can be no contract.
3. Accidental Elements - those exist only when the contracting parties expressly provide for them.

Question 2

Essential Requisites of a Contract

Answer 2

The following are the essential requisites of a contract:
1. Consent;
2. Obligations or subject matter;
3. Cause or consideration.

Question 3

These three requisites are, therefore, the essential elements of a consensual
contract. In real contracts, however, in addition to the above, the delivery of the object
of the contract is required as a further requisite.

Answer 3

Essential Requisites of a Contract

Question 4

It is manifested by the meeting of the offer 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. (NCC, Art. 1319)

Answer 4

Consent

Question 5

It is the concurrence of the wills of the contracting parties with respect to the object and
cause, which shall constitute the contract (De Leon, 2010).

Answer 5

Consent

Question 6

It is essential to the existence of a contract; and where it is wanting, the contract is non-existent.

Answer 6

Consent

Question 7

Requisites of Consent

Answer 7

1. Legal capacity of the contracting parties;
2. Manifestation of the conformity of the contracting parties;
3. Parties’ Conformity of the object cause, term and condition of the contract must be intelligent, spontaneous, and free from all vices consent.
4. The conformity must be real.

Question 8

The parties must have full civil capacity. Hence, if any one party to a supposed
contract was already dead at the time of its execution, such contract is undoubtedly
simulated and false and, therefore, null and void by reason of its having been made
after the death of the party who appears as one of the contracting parties therein. The
death of a person terminates contractual capacity (Milagros De Belen Vda. De Cabalu,
et. al. v. Sps. Renato Dolores Tabu and Laxamana, G.R. No. 188417, September 24,
2012).

Answer 8

1. Legal capacity of the contracting parties;

Requisites of Consent

Question 9

Manifestation may be in writing bearing the signature or marks of the parties, or it may be implied from the conduct of the parties like the acceptance of payment.

Answer 9

2. Manifestation of the conformity of the contracting parties;

Requisites of Consent

Question 10

Defined as an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person
to whom it is addressed (Rabuya, 2017 citing G. H. Treitel, The Law of Contract, 10th Ed., p.8).

Answer 10

Offer

Question 11

Elements of a Valid Offer and Acceptance

Answer 11

1. Definite - unequivocal
2. Intentional
3. Complete - unconditional

Question 12

Grounds that would Render the Offer Ineffective

Answer 12

1. Death, civil interdiction, insanity, or insolvency of either parties before the acceptance is conveyed;
2. Express or implied revocation of the offer by the offeree;
3. Qualified or conditional acceptance of the offer, which becomes counter-offer;
4. Subject matter becomes illegal or impossible before the acceptance is communicated;
5. Period given to the offeree to signify his acceptance has already lapsed.

Question 13

Requisites of a Valid Acceptance

Answer 13

1. Must be absolute, a qualified acceptance constitutes counter-offer;
2. No specified form but when the offeror specifies a particular form, such must be complied with.

Question 14

Person Incapacitated to Give Consent

Answer 14

1. Deaf-mute who do not know to read and write (illiterates);
2. Insane or demented person, unless the contract has entered into during a lucid interval;
3. Minor except;
   a. Contracts for necessaries;
   b. Contracts by guardian or legal representatives and the court having jurisdiction;
   c When there is an active misrepresentation on the part of the minor (minor is estopped)
   d. Contracts of deposit with Postal Saving Bank provided that the minor is over 7 yrs. of age’
   e. Contracts of insurance for life, health, and accidental on the minor’s life;
   f. Upon reaching age of majority; to ratify the same.

Question 15

Because the law incapacitates them to give their consent to a contract, the only way
by which any one of those enumerated above can enter into a contract is to act through a parent or guardian. If this requirement is not complied with, the result is a defective contract.
If only one of the contracting parties is incapacitated to give his consent, the contract is
voidable. If both of them are incapacitated to give their consent, the contract is unenforceable Person Incapacitated to Give Consent[NCC, Art. 1390(1), NCC, Art. 1403(3)].

Answer 15

Person Incapacitated to Give Consent

Question 16

Vices of consent

Answer 16

Mistake
Intimidation
Violence
Undue Influence
Fraud

Question 17

A threat to enforce a just or legal claim through a competent authority does not
amount to intimidation nor vitiate consent (NCC, Art. 1335).

Answer 17

Vices of Consent

Question 18

GR: (___) as a vice of consent refers to (_____) of facts and not of law, thus rendering the
contract voidable

Answer 18

Mistake

Question 19

XPN: When (_____) of law involves mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrate (NCC, Art. 1334).

Answer 19

Mistake

Question 20

Mistake is a false impression on something, while Ignorance is absence of any notion or
impression about a particular thing.

Answer 20

Mistake Distinguished from Ignorance

Question 21

a false impression on something

Answer 21

Mistake

Question 22

absence of any notion or
impression about a particular thing.

Answer 22

Ignorance

Question 23

Requisites of Mistake Distinguished from Ignorance

Answer 23

1. Mistake must be with respect to the legal effect of the agreement;
2. It must be mutual;
3. Real purpose of the parties must have been frustrated

Question 24

Kinds of mistakes of fact which vitiate consent

Answer 24

1. Mistake as to the nature of the contract;
2. Mistake as to the object of the contract;
3. Mistake as to the quality or principal condition of the contract;
4. Mistake or error in quantity;
5. Mistake as to the identity of the person;
6. Mistake as to the identity or qualification of one of the parties will vitiate consent only when such identity or qualification have been the principal cause of the contract.

Question 25

For mistake (as to the qualification of one of the parties) to vitiate consent, 2 requisites must concur:

Answer 25

1. The mistake must be either with regard to the identity or with regard to the qualification of one of the contracting parties; 2. The quality or identification must have been the principal consideration for the celebration of the contract.

Question 26

as to the legal effect of an agreement when the real purpose of the parties is frustrated, may vitiate consent. (NCC, Art. 1334)

Answer 26

Mutual Error

Question 27

refers to the rights of the parties as stated in legal provisions.

Answer 27

Legal effect

Question 28

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 consent [NCC, Art. 1335(2)].

Answer 28

Intimidation

Question 29

Requisites of Intimidation

Answer 29

1. One of the parties is compelled to give his consent by a reasonable and well-grounded fear of evil; 2. The evil must be imminent and grave; 3. It must be unjust; 4. The evil must be the determining cause for the party upon whom it is employed in entering the contracts

Question 30

There is violence when in order to wrest consent, serious or irresistible force is employed. (Art. 1335)

Answer 30

Violence

Question 31

Requisites of Violence

Answer 31

1. Physical force enforced must be serious and irresistible; 2. The determining cause for the party upon whom it is employed in entering the contract. A threat to enforce one's claim through competent authority, although it may have been employed by a third person who did not take part in the contract.

Question 32

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 (NCC, Art. 1337).

Answer 32

Undue Influence

Question 33

It must in some measure destroy the free agency if a party and interfere with the exercise of that independent discretion. (4 Tolentino 501)

Answer 33

Undue Influence

Question 34

Circumstances to be considered for the existence of undue influence:

Answer 34

1. Confidential, family, spiritual and other relations between the parties; 2. Mental Weakness; 3. Ignorance; 4. Financial Distress

Question 35

The test to determine whether or not there is undue influence which will invalidate a contract is to determine whether or not the influence exerted has so overpowered and subjugated the mind of the contracting party as to destroy his free agency, making him express the will of another rather than his own (Jurado, 2011).

Answer 35

Determination of undue influence

Question 36

When influence consists in persuasive arguments or in appeals to the affections which are not prohibited by law or morals, the consent is not vitiated at all. (Pineda, 2009)

Answer 36

Due influence does not vitiate consent

Question 37

The fear of displeasing persons to whom respect and obedience are due does not vitiate consent.

Answer 37

Reverential Fear

Question 38

There is fraud when through the insidious words or machinations of one of the contracting parties the other is induce to enter into a contract which, without them, he would not have agreed to (NCC, Art. 1338).

Answer 38

Fraud

Question 39

refers to a deceitful scheme or plot with an evil design, or a fraudulent purpose (Pineda, 2000).

Answer 39

Insidious words

Question 40

Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, constitutes fraud (NCC, Art. 1339).

Answer 40

Fraud

Question 41

Requisites of Fraud to vitiate Consent

Answer 41

1. It must be applied or utilized by the contracting party upon the other; 2. It must be a serious deception; 3. It must have induced the victim to enter the contract without which he would not have agreed to; 4. It must have resulted in damage or injury.

Question 42

Kind of Fraud

Answer 42

1. Fraud in the perfection of the contract; a. Casual Fraud (Dolo casuante) b. Incidental Fraud (Dolo Incidente) 2. Fraud in the performance of an obligation.