CONSENT

Essential requisites of contracts:

1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract
3. Cause of the obligation which is established.

Requisites of (1) Consent.

1. It must be manifested by the concurrence of offer and acceptance.
2. Parties must possess the necessary legal capacity.
3. It must be intelligent, free, spontaneous, and real. (Not made in jest)

Requisites of Offer:
1. Definite (alam mo what kind of contract)
2. Intentional (there’s intention on the part of the offeror, ex. Pepsi case)
3. Complete (for example, nagbebenta ka car, dapat may other details like color, type, etc)
4. Directed to person/s with whom the other party (the offeror) intends to enter into contract
(xpn: public auctions  offer, private auctions  not offer, unless complete xpn reqs)

Requisites of Acceptance:
1. Absolute
2. Directed to the offeror
3. Made with the intention to be bound
4. Made within a prior or reasonable time
5. Communicated to the offeror and learned by him, unless the offeror knows of the
acceptance.

Mirror-image Rule (Acceptance is absolute in a sense that it was accepted in its entirety; no
deviation) Exceptions that are exclusive, pag wala ito, walang juridical tie:
1. Facultative obligations
2. Clarificatory issues (e.g. stipulation na 12% interest rate pero di sinabi if month/day, it will
not deviate sa tenor of the offer even if nilagay ng offeree sa contract)
3. Amplified Acceptance (e.g. offered agriculturual property, tapos yung offeree accepted it
with addition na isama yung livestocks ≠ mirror-image, but constituted a valid acceptance.
4. Complex Offers (1 offer constituting to or more contracts)
- if interrelated, like house and lot, partial performance ≠ a valid acceptance. Thus, no juridical
tie
- if not interrelated (A offered B, house&lot and cars, pero cars lang yung accepted =
acceptance and may juridical tie)

Theories in perfection of a contract, which is entered through a correspondence

1. Manifestation theory (not followed by the Civil Code but recognized in Commercial Code of
the PH in some instances)
2. Expedition theory
3. Reception theory
4. Cognition theory (followed by the Civil Code)

Acceptance through silence (accepted under contracts of agency) requisites:

1. There is a duty/possibility to express oneself or the offeree appears to have that duty to
accept or there is an opportunity to manifest acceptance but chose to remain silent;
2. Manifestation cannot be interpreted in other way;
3. There is a clear identity in the effect of the silence and the undisclosed will.

Exceptions to the Rule that offeror can withdraw w/o liability as long as di nya pa alam na
accepted na by the offeree:
1. Article 19 of CC (Abuse of Right Doctrine)
2. If there exists an option contract (a preparatory contract, not principal contract, wherein the
offeror can no longer withdraw the offer until the expiration of the option contract, otherwise
there is a liability for damages for breach of contract but not to insist contract proposed: except
Art. 1479 Sale of a determinate thing for a price certain)

Requisites of an Option Contract (usually money is consideration but if not, must be expressly
stated) :
1. Supported by an independent consideration
2. It is exclusive

Who cannot give consent?

1.Unemancipated minors (can be assailed only by the minor or his guardian/parent, ≠ 
capacitated party)
2. Insane/demented persons (sanity is presumed, must be proven to be at this state during the
perfection of the contract  but the presumption of sanity does not apply in cases of
guardianship, kasi well represented na sya)
3. Deaf-mutes who do not know how to write (dapat deafmute + illiterate (sulat at basa),
presumption is also place at literacy except nalang if illiterate talaga, in which such person can
raise fraud, concealment, etc. the proof reverses to the other party.)

Instances where contracts entered by a minor is valid:

1. When the minor is represented by his guardian (legal/natural guardian)
2. When the minor misrepresents his age
3. Contracts involving the sale and delivery of necessities to minors (Art. 1389)
4. Savings deposit for minors who are 9 y.o. and above

Types of misrepresentation:
1. Mercado ruling  Active misrepresentation (minor cannot annul the contract on the ground
of minority because of this active misrepresentation, such as the docs signed by him stated
talaga that he’s a minor. E.g., may pagpretend and the other party knows he’s a minor)
Another form: mukha nang matanda talaga ang minor. Wag raw tanga hahaha

2. Constructive misrepresentation (minor can annul the contract kasi constructive/passive lang
yung misrepresentation e.g., silent lang sya and he merely signed)

Who are incompetents:

1. Persons under civil interdiction
2. Hospital lepers, prodigals, deaf and mutes
3. Persons of unsound mind
4. Persons who cannot take care of themselves because of age, disease, or weak mind.

GR: Incompetents but are not incapacitated may enter into a contract which would not result
to a defect therein.

XPN: If these incompetents are subject subjects to a guardian and still they entered a contract
on their own, the contract is defective.

GR: Contracts entered into by those with age or infirmities, not a ground for incapacity
(because wala naman age limit yung pag-enter ng contract)

XPN: Pero if the age impairs the mental faculties to the extent that unable to properly,
intelligently, and fairly understand the provision of the said contract, considered to be
incapacitated.

Effects of Civil Interdiction (partially incapacitated to enter contracts concerning below)

1. Parental authority or guardianship
2. Marital authority
3. Management of his/her property
4. Disposition of his property by any or any conveyance inter vivos

Two ways a contract may be considered as defective voidable

1. Entered into by one incapacitated person
2. When the consent is vitiated by any of the vices of consent

Two ways in which a mistake may be committed in the contract

1. Mistake as to the substance of the thing, which is the object of the contract
2. Mistake regarding the condition which have principally moved one or both parties to enter
into contract.

Two classifications of mistake

1. Mistake in manifestation  error in obstantibo
2. Mistake in the formation or contents of the volition  either mistake of law or mistake of
fact.
Four types of mistake as to the object of the contract

1. Error in corpore (mistake over the identity of the thing) = void

2. Error in substantia (mistake over the essence/substantial qualities of the thing which affects
the identity of the thing, but the materials which compose it. E.g, gold ring daw pero made of
silver pala) = voidable

3. Error over the determining attributes or characteristics of the thing which are foreign to the
matter (e.g. painting na kala mo painted by B, pero kay A pala, eh idol mo si B) = voidable

4. Error in quantitate (mistake as to the extension or dimension of the object and differs from
mistakes of account which is simply a mistake in computation or mathematic, e.g. condo na
dapat 50sqm pero 30 sqm lang) = voidable
 different from mistake of accounting = contract remains valid subject to rectification in the
mistake of computation.

Requisites in order for a mistake to vitiate consent resulting in a voidable contract

1. it must be a past or present fact, not the future.
2. it must induce the parties
3. it must not be imputable to the party mistaken (must be in good faith, inadvertent, and
excusable  otherwise, it is negligence)
4. it must be mistake of fact, not law.

Mistake of fact  vitiates consent.

Mistake of law  does not vitiates except when it involves mutual error.

Mistake of Law (Art. 1334)  if all are present, may avoid contract
1. it must be past or present fact
2. it must not be imputable to the party mistaken. The mistake must not be inadvertent or
inexcusable.
3. it must be with respect to the legal effect of an agreement
4. it must be mutual
5. parties’ real purpose must have been frustrated.

Requisites of Violence
1. serious or irresistible
2. must be the determining cause of the party
3. not justified
4. sufficient

Requisites of Intimidation
1. one party is compelled to give consent by fear of an evil
2. evil is imminent and grave
3. the evil must be upon his person/property or spouse, ascendants, descendants
4. reason why he enters the contract
5. evil must be unjust.

Undue Influence that does not vitiate consent

1. solicitation importunity agreements and persuasion
2. reverential fear (e.g. sa takot sa magulang, pinakasalan nalang yung gusto ng parents)

Two types of Fraud

1. Fraud in the fulfillment of an existing obligation (Art. 1171)
2. Fraud committed to induce a party to enter into a contract which is (Art. 1338)

In Art. 1338 -- no obligation yet, merely induces: DAMAGES

Art. 1171 -- there is already an obligation: CAN EXIST PERFORMANCE

Fraud in the Perfection of the Contract (Art. 1138)

1. Dolo Causante  essential cause of the consent; nullity of the contract
2. Dolo Incidente  refers only to some particular or accident of the obligation; obliges the
person to pay damages

Requisites of Fraud under Art. 1338

1. one party must have employed fraud or insidious words/machinations
2. serious
3. induced the party to enter into contract
4. employed only by one party, not both
5. damage/injury resulted to the other party
6. must be in bad faith

GR: Misrepresentation by a third person does not vitiate consent

XPN: 1. Such misrepresentation created a substantial mistake and the same is mutual (2 nauto)
2. When the third person causes the fraud in connivance with or at least the knowledge
and
Without protest of the favored contracting party

Two types of simulation of contracts

1. Absolute  don’t want to be bound at all: void
 entered into contract with someone for attachment of property to make it
appear
Na wala na syang property at di masingil ng creditor, pero di pa rin bound.
2. Relative  conceal their true agreement; valid and binds the parties, unless it prejudices a
third person and not intended contrary to laws, morals, good customs, etc.
 presumed by law
Two acts of relative:
1. ostensible act
2. hidden act

OBJECT

What can be objects of contracts?

1. Those not outside the commerce of men
2. Future things
3. Rights which are not intransmissible
4. Services which are not contrary to law, morals, good customs, etc.

Which cannot be objects of contracts?

1. impossible things or services
2. future inheritance, except authorized by law

Requisites in order of a valid object of contract

1. must be within the commerce of men (susceptible of appropriation, and transmissible frm
one to another)
2. real/possible
3. licit
4. determine or at least possible of determination as to its kind

Two types of impossibility

1. absolute impossibility of service
2. relative impossibility of service

Two possible contracts entered into when the object of the contract is a future thing:
1. Conditional contract
2. Aleatory contract