Jessie Jade S.

Duroja BSCE 4B
August 22, 2022

6. How the contract entered in the name of another?

- The contract entered into in the name of another without his authority, or without a
legal right to represent him or in excess of the authority given in unenforceable by action
unless the contract is ratified expressly or impliedly by him before the other party revokes it.

7. Discuss the elements of a contract.

Elements of a Contract:
1) Consent of the Contracting Parties
- must be free and given by someone who is sui juris, or one who has capacity to
act. Therefore it must be freely given by the party and must be an intelligent consent, the
party must know what he is consenting. If the consent of one party is not freely given
because such consent was obtained through fraud, violence intimidation, undue influence,
the contract is voidable. This is when it is said that the consent is vitiated.
2) Object Certain which is the Subject Matter of the Contract and
- Must be definite or determinate as to its kind; it must be lawful or it must be
within commence of man. It must like wise be possible, and not in any way contrary to
good customs, morals, public order or public policy.
3) Cause of the Obligation which is established.
- It must be true and licit. A contract with an illicit cause produces no effect
whatsoever.

8. In what instance is an offer is accepted?

- The general rule is that the person making the offer has the inherent right to fix the time,
place and manner of acceptance. Once fixed, the acceptance must be made strictly in such
manner to give birth to the consent. If this fixation is not followed consent may not be achieved.
Likewise, the offeror may give the offeree a period within which to accept the offer and he may
withdraw it at any time by communicating such withdrawal before the offer has been accepted
by the offeree. However, when the offeree had paid or promised the offeror a consideration for
the grabting of a period within which to accept, the offeror cannot revoke the option.
For instance, if Mr. A offers to sell a concrete mixer to Mr. B giving the latter ten days within
which to accept, Mr. A may revoke the offer at any time before Mr. B accepts it. But if Mr. B
had promised or given something to Mr. A in order that the latter will give an option or extension
of a period to accept, then Mr. A cannot withdraw the same until the appointed or designated
time.

9. When an offer is becomes ineffective?

- An offer may become ineffective if before its acceptance by the offeree, the offeror will
die or suffer civil interdiction or becomes insane or insolvent. If any of these circumstances will
supervene after the acceptance has been made, the contracts will continue to have force and
effect but the rights and obligations arising therefrom will decend to the heirs and assigns of the
parties depending upon whether they are transmissible by nature, by law or by stipulation.
10. Is an offer made through an agent is accepted? Why?
- Yes, an offer made through an agent is accepted from the time acceptance is
communicated to him by the offeree. This is so because the agent is legal contemplation is
considered as the extension of his principal and so whatever he does in connection with the
agency will bind the principal.

11. Is the published advertisement is an offer? Why?

- No, published advertisement is not an offer because business advertisement of things
which are for sale in newspaper ads or media are not definite offers but mere invitations to make
offer, and the same is true as regards advertisements calling for bidders to make proposals. In
either case, the advertiser is not bound even if a person responds completely to the terms
published unless indications show otherwise.

12. Is a no-read-no-write person can enter into a contract? Why?

- Yes, a no-read-no-written person can enter into a contract because the law has its
protective concern to the no-read no-write or disadvantaged party to the contract. Article 1332 of
the Code states when one of the parties is unable to read, or if the contract is written in a
language not understood by him, and mistake is alleged, the person enforcing the contract must,
show that the terms thereof have been fully explained to the former before its execution. Failure
to do so will render the contract voidable.

13. Is a contract characterized by the employment of serious and irresistible force valid?
Why?
- No, Violence is an external act characterized by the employment of serious and
irresistible force by one party or a third party for his account in order to secure the consent of the
other party to the contract. Employment of violence by a party or by a third person for his
account renders the contract voidable.

14. In what instance there is an intimidation in a contract?

- There is intimidation when one of the contracting parties is compelled to give his
consent on account of a reasonable and well-grounded fear of an imminent and grave peril
employed by the other party or a person for his account upon his person or property or upon the
person or property of his spouse, descendants and ascendants. Unlike in violence where the
victim’s will is substituted with that of the perpetrator, in intimidation it is not so because the
intimidated party exercises his will which is not free because of the fear of a forthcoming peril
upon him or his love ones’ person or property, thus rendering his consent defective and unfree.

15. In what case there is an undue influence?

- There is undue influence when a person takes improper advantage of his power over the
will of another, depriving the latter of a reasonable freedom of choice. Undue influence may
arise from the following circumstances: confidential, family, spiritual and other relations
between the parties, or the fact the person alleged to have been unduely influenced was suffering
from mental weakness or was ignorant or in financial distress.

16. Is fraud contract voidable? Why?

 - Yes, There is fraud when through insidious words or machinations of one of the
contracting parties, the other is induced to enter into a contract which, without them, he would
not have agreed to. Generally, fraud renders the contract voidable. To warrant avoidance of the
contract, however, the fraud alleged and proven must be serious and have not been employed by
both contracting parties.

17.Give another example of dolo causante and dolo incidente fraud contracts. Note: On
your hand-outs has example. Do not copy.
a. dolo causante
Example:
PTB sold to DM a parcel of land representing that land was “ absolutely free from liens
and encumbrances”  DM gave his consent on the faith of  PTB’s representation. Then when the
sale was registered, it was found that a lis pendens notice was annotated.
b. dolo incidente
Example:
Gono enter into a contract to deliver 500 cavans of rice to Rhea with a price per cavan of
1,300 pesos, Gono delivered 300 cavans but withheld the delivery of the remaining, stating that
the price went up and priced the rice to 1,600 per cavan. The fraud here is dolo incidental
because it is committed to the existing contract.

18.Give at least two (2) example of instances not constituting fraud. Select and specify
from the four instances. Do not copy the given example.
a. “Gay sold her land with an area of sixty hectares, by misrepresentation he lead
Azzaraga to believe that the said land contained 98 hectares and thus made it in the deed of sale
and induced the vendee to pay the price of forty seven thousand (47,000) pesos. But before the
contract was p-erfected, Azarraga visited and examine the area by himself and Gay does nothing
to prevent such investigation. Latter on Azzaraga file a suit for recovery of the excess payment
for the said land because he was defrauded by Maria Gay.Supreme Court held no. One who
contracts for the purchase of real estate in reliance on the representations and statements of the
vendor as to its character or value but after he has visited and examined it for himself and hr has
the means and opportunity of verifying such statements, cannot avoid the contract on the ground
that such statements were false or exaggerated.” – Example of Usual exaggeration in trade.

b. “Romeo, on buying a watch, was assured by the seller that it was a good watch, and
could run without rewinding for one week, in the opinion of the seller. This is a mere expression
of opinion that is not fraudulent. But if the seller was a watch expert, and the only reason why
Arlene bought the watch was the opinion of the seller, the contract is voidable on the ground of
fraud.” – Example of Expression of a favourable opinion.

c. “Ginang Alahera sold Gino a diamond ring which she believed to be a true diamond
ring. It turned out that it was not. Ginang Alahera cannot be held liable for fraud but will be
required to return Gino’s payment.” - Example of Misrepresentation made in good faith.

d. “Don Emilio is the owner of a parcel of land in Laguna. Cardo is interested in buying a
land in Laguna on which to build a factory. Juaquin tells  Don Emilio and Cardo that the place
where the land of Don Emilio is situated is an industrial zone. If on the strength of the
representation made by Juaquin, the land is bought by Cardo, and it turns out that place is
residential zone, the contract of sale maybe annulled because of substantial mistake on the part of
the seller and the buyer.” – Example of Misrepresentation by a third person.

19. Is the contract put in place if there is a failure of either party to disclose facts? Why?
- Failure of either party to disclose facts when there is a duty to reveal them as when the
parties are bound by confidential relations, constitute fraud (Art. 1339).
When there is a duty to disclose facts as when they are bound by confidential relations
like that of lawyer and client or principal and agent, failure of the knowledgeable party to reveal
such information amounts to fraud, hence the contract is rendered voidable. Situations like this
may occur in employment or insurance contracts where to get the employer or insurer’s assent
the prospective employee or insurance applicant who had suffered a grave ailment conceals this
fact or substitute an X’ray of a healthy person for him.

20. When a contract simulated?

- A contract is simulated when it is fictitious or pretended in order to defraud the creditor
or mislead the general public. It may be absolute or relative and in either case the apparent
contract is not really desired or intended to produce legal effect.

21. Is a municipal council sell or lease a public property like a plaza? Why?
- No, a municipal council cannot sell or lease public property, such as plazas, streets,
common land, rivers, bridges, etc. because they are outside the commerce of man; and if it has
been done so by leasing part of the plaza the lease is null and void, for it is contrary to law, and
the thing leased cannot be the object of a contract.

22. How important is the cause of contracts?

- A cause which must be in existence at the time of the contract is the last element of a
valid contract. Cause or consideration is the immediate, direct and proximate reason why a party
enters into the contract and without which the contract becomes a nullity.

23. Give another example of different cause of contracts. There are three. Do not copy
the example in the hand-outs.
 Onerous contracts:
Example:
A contractor might agree to build a home at a set price, only to have a spike in raw
materials pricing drive the cost of construction past the expected earnings from the project.
 Remunatory contracts
Example:
Karl gave Dane 1 live Carabao, in consideration of the latters act in saving the former’s
cows in times of typhoon .
 Gratuitous contracts
Example:
Karl promises to sell a parcel of land to Dane for the sum of P10,000 by virtue of the
promise on the part of Dane to pay the said amount for the land.

24. What is motives in entering into a contract?

 - The particular motives of the parties in entering into a contract are different from the
cause thereof. The motive is the special or personal reason of a party why he entered into the
contract, as distinguished from the cause of the contract.

25. What and when is a contract without cause or with illegal cause?

- Contracts without a cause or with illegal cause, produces no effect whatsoever. The
cause is unlawful if it is contrary to law, morals, good customs, public order and public policy.