part 1

• 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.


  contract
• (1)   Consent of the contracting parties;

  (2) Object certain which is the subject matter of the contract;

  (3) Cause/Consideration of the obligation which is established.


  essential requisites of a contracts
• is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract

  consent
• preparation, perfection, and consummation


  stages of contract
• negotiation begins when the prospective contracting parties manifest their interest in the contract and ends at the moment of their agreement.

  preparation
• birth of the contract occurs when they agree upon the essential elements thereof.

  perfection
• occurs when the parties "fulfill or perform the terms agreed upon in the contract, culminating in the extinguishment thereof


  consummation
• the contract is perfected from the moment the acceptance is declared on made even if not made known to the offeror. –US courts


  expedition theory
• the contract is perfected from the moment the acceptance comes to the knowledge of the offeror. –Phil. Courts


  cognition theory
• the contract is perfected from the moment the acceptance is declared or made

  Manifestation theory
• The acceptance by the offeree may be revoked ____ reaching the knowledge of the offeror

  before
• the personality of the agent is an extension of that of the

  principal.
• One giving a person a certain period within which to accept the offer of the offeror

  option contract
• money paid or promised to be paid in consideration for the option

  option money
• partial payment and is considered as proof of the perfection of the contract.

  earnest money
• persons incapable of giving consent

  minors, insane or demented person, deaf-mutes who do not know how to write, persons suffering from civil interdiction, incompetents under guardianship, married woman of age in cases specified by law.
• Is a condition or state by virtue of which an admission or representation is rendered conclusive upon the person making it, and cannot be denied or disproved as against the person relying thereon.

  estoppel
• is a temporary period of sanity

  lucid interval
• there is physical contact between the person or there is physical coercion


  violence
• there is mental or moral coercion

  intimidation
• when in order to wrest consent, serious irresistible force is employed

  violence
• when one of the contracting parties is compelled by a reasonable and well-grounded fear of 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.

  intimidation
• through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract, without which, he would not have agreed.

  fraud
• committed after the perfection of contract, the right of the party is to ask for damages.

  Incidental fraud (dolo incidente)
• committed before or at the time of perfection, the rights is to ask for annulment of contract.


  Causal fraud (dolo causante)
• A fraud that vitiates consent is

  causal fraud
• Let the buyer beware. The transaction is not fraudulent because this is considered tolerable fraud. Exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent. This is otherwise known as “dealer’s talk”.

  caveat emptor
• Is the declaration of a fictitious intent manifested deliberately and by agreement by the parties in order to produce, for the purposes of deceiving others, the appearance of a transaction which does not exist or which is different from their true agreement.

  simulation
• ....takes place when the parties do not really want the contract, they have executed to produce the legal effects expressed by its wordings

  simulation
• when the parties do not intend to be bound void from the beginning.

  absolute
• parties conceal their true agreement. When not prejudicial to third person and not intended for any purpose contrary to law, morals, good customs, public order or public policy, binds the parties to their real agreement.

  relative
• All things which are not outside the commerce of men, including future things, may be the object of a contract. All rights which are not intransmissible may also be the object of contracts. No contract may be entered into upon future inheritance except in cases expressly authorized by law.

  object
• The essential and impelling reason why a party assumes an obligation

  cause/consideration