Contracts

• Annulment is the action that is brought to set aside a voidable contract.
• Cause is the essential reason of a party in entering into a contract.
• Undue influence is present when one person takes improper advantage of his proper over the will of another depriving the latter of a reasonable freedom of choice.
• Violence exists when serious or irresistible force is employed to obtain consent.
• Civil interdiction is an accessory penalty which deprives a person during the term of his sentence of the rights of parental authority, of guardianship, of marital authority, of the right to manage his property and of the right to dispose of such property by any act or conveyance inter vivos.
• Consent is the manifestation of the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.
• Contract is a meeting of minds between two persons whereby one binds himself with respect to the other to give something or to render some service.
• Absolutely simulated contract is a contract where the parties do not intend to be bound at all.
• Accessory contract is a contract whose existence depends upon another contract.
• Aleatory contract is a contract whose fulfillment depends upon chance.
• Bilateral contract is a contract wherein both parties are required to perform reciprocal prestation.
• Commutative contract is a contract where the parties give equivalent values, hence there is a real fulfillment.
• Consensual contract is a contract that is perfected by mere consent.
• Formal contract is a contract that must be in the form provided by the law, in addition, to having the three essential requisites of a contract.
• Gratuitous contract is a contract whose cause thereof is the liberality of the benefactor.
• Innominate contract is a contract that does not have any special name under the law.
• Nominate contract is a contract that has a special name under the law.
• Onerous contract is a contract whose cause, with respect to one party, is the prestation or the promise of a thing or service by the other party.
• Option contract is a contract wherein the offeree is given a certain period within which to buy or not the thing being offered.
• Principal contract is a contract that can stand by itself.
• Real contract is a contract wherein the delivery of the object is required for its perfection.
• Relatively simulated contract is a contract wherein the parties hide their real agreement to which they are bound as a rule.
• Remuneratory contract is a contract wherein the cause thereof is the service remunerated.
• Rescissible contract has all the essential requisites of a contract, but which may be set aside by reason of injury or damage to third persons.
• Unilateral contract is a contract wherein only one party is obligated to do or give something.
• Void contract is a contract without any force and effect since the beginning.
• Voidable contract is defective by reason of the incapacity or vitiated consent of one of the parties to a contract.
• Natural elements of a contract are inherent in a contract unless set aside or suppressed by the parties.
• Pari delicto is the term used when both parties to a contract are guilty.
• Perfection is the stage of a contract when there is a meeting of minds between the parties on a definite subject matter and valid cause.
• Relativity of contract is the principle that contracts take effect only between the contracting parties, their assigns and heirs.
• Rescission is the remedy allowed by law to the contracting parties and to third persons to repair the damages caused them by a contract.
• Fraud is the use of insidious words or machinations to obtain consent.
• Consensuality of contract is the principle that contracts are perfected by mere contracts.
• Motive is the particular reason of a party in entering into a contract.
• Intimidation is a vice of consent where a person 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, ascendant or descendant.
• Mistake refer to the substance of the thing which is the object of the contract or the principal conditions which moved a party into the contract, in order to vitiate consent.
• Lucid interval is the period of temporary sanity of an insane person.
• Obligatory force of contract and compliance in good faith is the principle that the contract has the force of law between the contracting parties and must be complied with in good faith.
• Statute of fraud is designed to prevent the commission of fraud by requiring certain contracts to be in writing.