1305 - 1355 EXAM

• What are the essential requisites of a contract?

  1. Consent

  2. Object

  3. Cause
• If consent is vitiated, what is the effect on the contract?


  The contract becomes voidable.
• If an essential element of a contract is missing, what is the effect?


  The contract is void.
• What is consent?


  Giving of one's conformity to the terms of the contract freely and voluntarily.
• What are the elements of consent?

  1. Legal capacity

  2. Manifestation of the conformity.

  3. The parties' conformity must be intelligent, spontaneous and free from all vices of consent.

  4. The conformity must be real and not simulated or fictitious.
• How is consent given?


  Either expressly or impliedly.
• What is the effect of a conditional acceptance?

  It is deemed to be a counter-offer which extinguishes the offer.
• If a party accepts via telegram or letter, when does it bind the offeror?


  Only from the time the offeror comes to know of the acceptance.
• When may an offeror withdraw his offer?


  At any time before any interested party accepts.
• If an offeror withdraws his offer after it has been accepted, what is the effect?


  He will be liable for damages
• Is mere silence enough to constitute consent?


  Generally, no.

  Except when there is a duty to speak up on the part of the person to whom an obligation is being proposed to.
• T/F - The party making the offer can fix the time, place and manner of acceptance.


  True. (1321)
• Can an offer be made via an agent?

  Yes.

  However, the offer is deemed accepted not from the knowledge of the offeror but from the time agent has received the communication of acceptance. (1322)
• If an offer is made but the person to whom the offer is made to becomes dead, insane, insolvent or sentenced to civil interdiction, what is the effect?


  The offer becomes ineffective. (1323)
• If an offeror gives the offeree a period of time to accept, can the former withdraw his offer?


  Generally, yes provided it is communicated before acceptance.

  Except when the option has a consideration. (1324)
• If the offeror fixes a period for acceptance, when should acceptance be made?


  Within the period fixed. If no acceptance is made, the offer ceases to exist. (1324)
• If the offeror does not fix a period for acceptance, when should acceptance be made?


  Immediately. (1324)
• What is an option contract?


  A contract between the offeror and the offeree whereby the former grants the latter, for a valuable consideration, the privilege to buy or not to buy certain objects at anytime within a specified period and for a fixed price.

  It is merely a preparatory contract to the principal contract. (Pineda, p. 426)
• If the offeror withdraws his offer after the offeree had given a consideration for the option granted, is the former liable?


  Yes. The offeror is liable for damages. He may be required to execute the necessary document of sale.
• Differentiate option money and earnest money.

  If the principal contract is consummated:

  The option money will not form part of the purchase price.

  The earnest money will form part of the purchase price.

  
  

  If the principal contract is not consummated:

  The option money will not be refunded.

  The earnest money may be refunded.
• Are advertisements for sale definite offers?


  General rule, no. They are mere invitations to make an offer.

  Except when the advertisement contains all the necessary data needed in a contract. (1325)
• In advertisements to bid, is the advertiser bound to accept the highest or lowest bidder?

  No. They are merely invitations to make proposals. (1326)
• Who cannot give consent to a contract?

  1. Unemancipated minors

  2. Insane or demented persons, and deaf-mutes who do not know how to read or write

  (1327)
• If a contract is entered into by those mentioned in Art. 1327, what is the effect on the contract?


  If one party cannot give his consent, the contract isvoidable.

  If both parties cannot give consent, the contract isvoid.
• Does old age and weakness of the mind amount to incapacity to give consent?

  No. (Cui vs Cui)
• Are all deaf-mutes incapacitated to give consent?

  No. Only those who do not know how to write are incapable of giving consent.
• What are the exceptions by which a minor is still liable for contracts he entered into?

  1. When there is active misrepresentation

  2. When the contract involves a sale and delivery of necessaries to the minor

  3. When the minor ratifies the contract upon reaching the age of majority

  4. When the contract is in the form of savings account in the postal savings bank

  5. When the contract is an insurance for life, health or accidents
• Are contracts entered into during a lucid interval void?

  No. They are valid. (1328)
• What is a lucid interval?

  A moment of normalcy during insanity.
• Are contracts entered into during drunkenness or during a hypnotic spell valid?

  No. They are voidable. (1328)
• What are the vices of consent?

  Mistake, violence, intimidation, undue influence or fraud. (1330)
• What is the effect if a contract is affected by vices of consent?

  It becomes voidable. (1330)
• T/F - all kinds of mistake vitiates consent.

  False. Only mistakes that refer to the substance of the object or principal conditions of a contract will vitiate consent.
• What kind of mistake can vitiate consent?

  Those mistakes that refer to the substance of the object or principal conditions of a contract. (1331)
• What are the kinds of mistake?

  Mistake as to:

  -the nature of the contract

  -the object of the contract

  -the quality or principal conditions of the thing

  -quantity
• If the mistake is a mistake of law, can it vitiate consent?

  No.

  Except when it is mutual. (1334)
• What are the requisites for mistake as to the person to be appreciated as vitiated consent?


  1. The mistake must be with respect to the identity or qualifications of one of the parties

  2. The identity or qualification is the principal reason for entering into the contract
• Is mistake in estimation a ground for vitiated consent?

  No.
• It is presumed that a person intends the ordinary consequences of his voluntary act.

  
  

  In what kinds of situations does this presumption not apply?

  1. When one of the parties is unable to read or write

  2. When the contract is written in a language not understood by the said party

  (1332)
• In cases where one of the parties is illiterate or where the contract was written in a language not understood by one of the parties, who has the burden of proof?

  The burden rests upon the party seeking to enforce the contract that the other party understood the document fully. (1332)