1.
Principle of Void Contract
- voidable or annullable contracts are those
which possess all the essential requisites of a
valid contract but one of the parties is incapable
of giving consent, or consent is vitiated by
mistake, violence, intimidation, undue influence,
or fraud.
- they are valid and binding between the parties
unless annulled by a proper action in court by
the injured party. Once ratified, they become
absolutely valid and can no longer be annulled.
*Note that the existence of economic damage is
not essential for their annulment as in the case of
rescissible contracts.
Kinds of voidable contracts
a contract otherwise legal in object and
operation is voidable because of a defect caused
by either:
a) Legal incapacity to give consent, where one
of the parties is incapable of giving consent to
the contract; or
b) Violation of consent, where the vitiation is
done by mistake, violence, intimidation, undue
influence, or fraud.
2. Statute of Fraud
- In 1677, the English Parliament enacted a
statute to counter the evil practice of giving false
testimony in actions founded on certain kinds of
contracts.
- It attempted to deal with the prevalence of
successful perjury by making specified contracts
unenforceable unless evidenced in a prescribed
manner - in general, by a written memorandum
signed by the party against whom liability under
the contract was sought to be enforced.
3. The principle of Rescissible Contract
4. - there must be damage
- are those validly agreed upon because all the
essential elements exist and, therefore, legally
effective, but in the cases established by law, the
remedy of rescission is granted in the interest of
equity.
- they are valid and enforceable although the
subject to rescission by the court when there is
economic damage or prejudice to one of the
parties or to a third person. In a rescissible
contract, there is no defect at all but by a reason
of some external facts, its enforcement would
cause injustice.
5. Annulment
- nagkamali ang isa- voidable
- is a remedy provided by law, for reason of
public interest, for the declaration of the
inefficacy of a contract based on a defect or vice
in the consent of one of the contracting parties in
order to restore them to their original position in
which they were before the contract was
executed.
6. Real Contract- there must be a delivery
- the exceptions are the so-called real contracts
which are perfected not merely by consent but
by the delivery, actual, or constructive, of the
object of the obligation. These contracts have for
their purpose restitution because they
contemplate the return by a party of what has
been received from another.
7. Situational- both negative
8. Ono
9. Principle of Undue Influence
- influence of a kind that so overpowers the
mind of a party as to prevent him from acting
understandingly and voluntarily to do what he
would have done if he had been left to exercise
freely his own judgement and discretion.
- the influence must be undue or improper to
avoid a contract. Mere general or reasonable
influence is not sufficient. If gained by kindness
and affection or argument and persuasion, the
influence will not vitiate consent.
- the ff: are examples of circumstances which
shall be considered to determine whether undue
influence has been exercised:
a) confidential, family, spiritual and other
relations between the parties,
b) mental weakness,
c) ignorance, or
d) financial distress of the person alleged to have
been unduly influenced.
10. Both tango
11. Principle of Lucid Interval
- is a temporary period of sanity. A contract-
entered into by an insane or demented person
during a lucid interval is valid. It must be
shown, however, that there is a full return of the
mind to sanity as to enable him to understand
the contract he is entering into.
12. Qualified Acceptance- no acceptance
- if the acceptance is qualified, as when it is
subject to a condition, it merely constitutes a
counter-offer which, in law, is considered a
rejection of the original offer and an attempt by
the parties to enter into a contract on a different
basis.
- a qualified acceptance must, in turn, be
accepted absolutely in order that there will be a
contract.
13. Offer thru an agent
14. Acceptance thru an agent
- an offer made thru an agent is accepted from
the time acceptance is communicated to him.
- Communication of acceptance
1) to offerer- the acceptance of the offer must
be absolute(supra). The other requisite is that the
acceptance must be communicated to the offerer.
The acceptance may be either express or implied
subject to the terms of the offer.
2) to agent- by legal fiction, an agent is
considered an extension of the personality of his
principal.
15. Principle of Stipulation Pour Autrui
- is a stipulation in a contract clearly and
deliberately conferring a favor upon a third
person who has a right to demand its fulfillment
provided he communicates his acceptance to the
obligor before its revocation by the obligee or
the original parties.
16. Commence of Men
- all things which are not outside the commence
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.
- outside the commence of men- clings of public
ownership such as sidewalks, public places,
bridges, streets, etc. things that are common to
everybody such as air, sunlight, air, etc.
17. Autonomy Clause Liberty
- acceptance of the offer.
18. Real and Consensual Contract
1) consensual contracts- as a general rule,
contracts are perfected by mere consent of the
parties regarding the subject matter and the
cause of the contract. They are obligatory in
whatever form they may have been entered into,
provided all the essential requisites for their
validity.
2) real contracts- the exceptions are the so-
called real contracts which are perfected not
merely by consent but by the delivery, actual, or
constructive, of the object of the obligation.
These contracts have for their purpose restitution
because they contemplate the return by a party
of what has been received from another.
*classification of contracts according to
perfection
19. Solemn Contract
- or that which requires compliance with certain
formalities prescribed by law, such prescribed
form being thereby an essential element thereof.
- when the law requires that a contract be in
some form to be valid, this special form is
necessary for its perfection. Thus, a donation of
real property cannot be perfected until it is
embodied in a public instrument.
20. Mutual Contract-
-
21. I'm utang, I'm Bayad
22. Double
23. Principle of Unenforceable Contract
- unauthorized contracts are unenforceable.
- as a general rule, a person is not bound by the
contract of another of which he has no
knowledge or to which he has not given his
consent. A contract involves the free will of the
parties and only he who enters into the contract
can be bound thereby. A contract entered into in
the name of another by one who has no authority
is unenforceable against the former unless it is
ratified by him before it is revoked by the other
contracting party.
24. Definition of Consent
- is the conformity or concurrence of wills (offer
and acceptance) and with respect to contracts, it
is the arrangement of the will of one contracting
party with that of another or others, upon the
object and terms of the contract.
- it is the meeting of the minds or mutual assent
between the parties on the subject matter and the
cause which are to constitute the contract even if
neither has been delivered. Mutual assent or
agreement takes place when there is an offer and
25. - 28. Definition of Acceptance and Offer
- acceptance- is the manifestation by the offeree
of his assent to all the terms of the offer.
Without acceptance, there can be no meeting of
the minds between the parties.
- acceptance of offer must be clear and
absolute-it must be unconditional or
unqualified, that is, it must be identical in all
respects with that of the offer so as to produce
consent or meeting of the minds.
-offer- is a proposal made by one party (offerer)
to another (offeree), indicating a willingness to
enter into a contract.
- offer must be certain or definite so that the
liability or the rights of the parties may be
exactly fixed.
-an offer made in jest or in anger, or while
emotionally upset or in other ways indicating
that the same was not seriously intended is not a
valid offer.
-but lack of serious intent to enter into a
contract where such a condition was not
apparent to the offeree who honestly believed
that the offer was seriously intended, does not
invalidate the offer.
29. Offer/ Acceptance thru agent
30. Option Money -reciprocal- are those which arise from the same
- is the money paid or promised to be paid in cause and in which each party is a debtor and
consideration for the option. It is not confused creditor of the other, such that the performance
with earnest money which is actually a partial of one is designed to be the equivalent and the
payment of the purchase price and is considered condition for the performance of the other.
as proof of the perfection of the contract.
49. Decertain
31. Real Contract -
- the exceptions are the so-called real contracts
which are perfected not merely by consent but 50. Parties in obligation
by the delivery, actual, or constructive, of the - debtor
object of the obligation. These contracts have for -creditor
their purpose restitution because they
contemplate the return by a party of what has subject matter
been received from another. causal situation
juridical ties
32. Situational (Valid or Void)
33-35. Valid / Voidable
36-37. Real / Real

38. None of the above

39. Ratification
- means that one voluntarily adopts or approves
some defective or unauthorized act or contract,
which, without his subsequent approval or
consent, would not be binding on him. It
indicates an intention on the part of the ratifier
to be bound to the provisions of the contract.

40. All of the above

41.- 43. Situational
44. Principle of prestation
- subject matter of the obligation
- the conduct required to be observed by the
debtor. It may consist in giving, doing, or not
doing. Without the prestation, there is nothing to
perform. In bilateral obligations, the parties are
reciprocally debtors and creditors.

45. Negotiorum Gestio

- is the voluntary management of the property or
affairs of another without the knowledge or
consent of the latter

46. Obligation with a Period

- is one whose effects or consequences are
subjected in one way or another to the expiration
or arrival of said period or term.

47. Accessions/Accessories
-accessions- are the fruits of a thing or additions
to or improvements upon a thing
-accessories- are things joined to or included
with the principal thing for the latter's
embellishment, better use, or completion.

48. Unilateral/Reciprocal
-unilateral- when only one party is obliged to
comply with a prestation.