CHAPTER 2 - SECTION 1 (1327-1346)

• Article 1327

  The following cannot give consent to a contract:

  
  

  Unemancipated Minors

  Insane or demented persons

  Deaf-mutes who do not know how to write
• Cannot give consent


  Unemancipated Minors
• Cannot give consent


  Insane
• Cannot give consent


  Demented persons
• Cannot give consent


  Deaf-mutes who do not know how to write
• Can give consent


  Deaf-mutes who do know how to write
• Contracts entered into Lucid Interval

  Valid
• Drunkenness

  Voidable Contract
• Hypnotic Spell

  Voidable contract
• Contract with one party is an incapacitated person


  Voidable contract
• Contract with both parties are incapacitated

  Unenforceable Contract
• Purchase of necessities with incapacitated person

  Valid contract
• Purchase of bike with an incapacitated person

  Invalid Contract
• Contract entered with guardian

  Valid Consent
• When minor misrepresented his age and convincingly led the other party to believe in his legal capacity

  Valid Contract
• A contract where consent is given through, mistake, violence, intimidation, undue influence, or fraud is voidable
• Characteristics of consent

  • It is intelligent
  • It is free and voluntary
  • It is conscious or spontaneous
• Vices of consent

  • Error or mistake
  • Violence or force
  • Intimidation or threat or duress
  • Undue Influence
  • Fraud or Deceit
• Normal mistake

  Does not vitiate consent
• Substantial mistake

  Does vitiate consent
• Substantial Mistake


  If the party knew the mistake, there would be no consent
• Mistake or Error


  The false notion of a thing or a fact material to the contract
• Mistake as to quantity or amount (general rule)

  Does not vitiate consent
• Error that could have been avoided

  Does not vitiate consent
• Presumption


  When a person signs a document, he does so with full knowledge and understanding of the contents of the same. Therefore, bound by all its terms.
• When one of the parties cannot read, or if he does not understand the language, one must fully explain it to the other.
• If the party alleging it knew the doubt, contingency, or risk affecting the object of the contract

  There is no mistake
• Mistake of the Law


  Arises from an ignorance of some provision of law
• Mistake of Law


  Does not vitiate consent
• Mistake of Law does not invalidate consent because of the maxim of ignorantia legis neminem excusat or "ignorance of the law excuses no one"
• Requisites of Article 1334

  • The error must be mutual
  • It must be as to the legal effect of an agreement; and
  • It must frustrate the real purpose of the parties
• Violence


  Require the employment of physical force
• Intimidation or Threat


  Must produce a reasonable and well-grounded fear of an evil, reason why one enters into a contract
• Intimidation - Internal

  Violence - External
• Reverential Fear


  Absence of a real threat - contract is valid
• Threat of a court

  Means to enforce legal claim - does not vitiate consent
• Violence or Intimidation shall annul the obligation
• Undue Influence


  Influence of a kind that so overpowers the mind of a party as to prevent him from acting understandingly and voluntarily
• Causal Fraud


  fraud that vitiate consent
• Causal Fraud


  fraud committed by one party before or at the time of the celebration of the contract to secure the consent of the other