CONTRACTS

• Consent


  Cannot be given by minors, insane, demented people, and deaf-mutes who cannot write
• Necessaries needs incurred by incapacitated persons

  Valid
• Lucid interval


  Temporarily valid and temporary sanity
• Consent


  Meeting of the offer and acceptance upon the thing constitute contracts
• Acceptance


  Can be expressed or implied
• Ratifications


  • Implied
  • Expressed
• Ratification cleanses defects from the moment it was perfected or constituted
• When annulment has occurred, the former contracting parties are reverted to their original situation with interest
• There must be mutual restitution when annulment has occurred
• When there is an incapacitated person or minor involved, the one who benefited must give back what he has benefited
• When one does not give back, you shall not be compelled to give back as well, this includes interest
• Annulment prescriptive period is 4 years
• Incapacities can be modified by law and is deemed that is not prejudiced against the law
• Mistakes to invalidate consents

  Refer to the object of contract or conditions that have moved one or both parties to enter into the contract
• Mistakes and errors


  False notion of the thing or a fact material to the contract
• Vices of consent - consent is given because of mistake, violence, or fraud, and has a defect and is voidable
• Errors must be substantial: if the parties know that there is a mistake, they won't contract. And if they do, there must been a mistake or misinterpretation
• Substantial mistakes do not include the profession of a person and therefore, not grounds for annulment
• When one of the contracting parties is unable to read or write, the person who wants to contract must show the terms and must be fully explained to the former
• There is no mistake if the contracting parties know the risks involving the contracts
• Contracts are voidable by force or violence = irresistible force - cannot be fought
• Violence and intimidation are grounds for annulment, and violence can be done by a third person
• Undue influence


  Unjustifiable power that prevents one from his own judgment, and overpowers the mind of the other: Family, Spiritual, and other relationships
• False advertisements are not fraudulent, it is only sales talk. Usual exaggerations in businesses are only sales talk
• Expression of opinions are not always fraud, unless, the opinion was made by an expert and the party relied on the former's knowledge
• Fraud by a third person does not destroy the consent of the contracting parties unless that mistake causes a substantial mistake and the same is mutual
• Misrepresentations in good faith are not fraudulent but it does constitute errors
• For contracts to become voidable, it must be serious and the two contracting parties did not employ
• In pari delicto - equal guilt, equal fraud. When you go to court, you must be clean
• Simulation of contracts


  Pretending to agree in the contract to deceive by agreement
• Absolute simulation


  It does not exist, hence void
• Relative simulation


  When two parties enter into a contract different from their true agreement. The parties are bound by their true agreement
• The agreement is valid if not contrary to the law and does not prejudice others
• Unenforceable contracts are when contracts are made primarily by 2 minors or an incapacitated person
• Voidable contracts are when only 1 incapacitated person is involved, however, if there are 2, then it is valid nonetheless
• RATIFICATION CLEANSES DEFECTS FROM THE MOMENT IT WAS PERFECTED OR CONSTITUTED