ICCT Colleges Foundation, Inc.

Law on Obligations and Contracts (CBBL-01)

ACTIVITY CHAPTER 4
Direction: Explain the following statements/question in not less than 5 sentences.
1. Which of the following contracts is valid? (Explain your answer) (5points)
A. Oral contract of agency giving authority to an agent to sell the land of the principal.

->> The conduct of two parties indicates that they are acting in a principal and
agent capacity, An agent is responsible to the principal of his work.The
responsibility of the work is for agents only. Delegation of authority. In this, the
principal delegates his/her authority to the agent to do the things on his/her
behalf. In fact, contract of agency starts after principal appoints the agent along
with a delegation of authority.
B. Oral partnership agreement where immovable is contributed.

->> A partnership may be constituted in any form, except where immovable

property or real rights are contributed thereto, in which case a public instrument
shall be necessary. Under Art. 1771 of the New Civil Code, if the partners intend
to contribute immovable property or real rights, the contract of partnership must
be in public instrument; otherwise, the oral contract is void.
C. Oral contract of sale of a land entered into by an agent who has given oral authority
by the principal.

->> While agency may be oral, the Civil Code requires that it be in written form in
certain situations. For instance, the authority of the agent to sell land or any
interest therein must be in writing. Those that are unauthorized or even if
authorized but beyond the power or authority given. The sale of a parcel of land
made by special administrator of an estate done in his personal capacity without
the approval of the probate court having custodia legis over the property. It is not
binding upon estate
D. Oral agreement to answer all the expenses for the wedding reception If A marries B.
->> If both parties of the wedding signed the contract, they may both be liable for
the expenses. If one of the parents signs the contract for the florist, the parent
may be financially liable for the bill, depending on the terms of the contract. It is
important to read your wedding vendor contracts carefully, including any
cancelation policy.
2. On June1, S offered to sell a specific generator set to B for P300,000. B sent a letter
for acceptance to S on June 8. On June10, however, S became insolvent. On June 12, S
received the letter of acceptance. Was the Contract perfected? (5points)

->> The contract was not perfected because the insolvency of S occurred before
he came to learn of the acceptance of his offer. It is well settled rule that an offer
becomes ineffective upon the insolvency of either party before acceptance is
conveyed. Unless it appears otherwise, business advertisements of things for sale
are not definite offers but merely invitations to make an offer,