BUSLAW NOTES

What Is the Statute of Frauds? The statute of frauds is a legal doctrine that requires certain types
of contracts be in writing. The most common contracts covered by the statute of frauds includes the sale
of land, agreements involving goods worth over $500, and contracts lasting one year or more

What happens if a contract is subject to the Statute of Frauds?

Contracts that Cannot be Performed Within One Year. Under this provision of the Statute of
Frauds, contracts that cannot be performed within one year of the contract being made must be in
writing. The one-year time period is measured from the date that the contract is made.

A valid contract is one that is legally binding and enforceable in a court of law. It means that the
contract has all the essential elements required for it to be considered valid and legally enforceable. On
the other hand, an enforceable contract is one that has legal consequences if one party fails to perform
their obligations under the contract. In other words, an enforceable contract is one that can be enforced
by a court of law.

An example of a valid contract would be a contract for the sale of goods or services, which
contains an offer, acceptance, consideration, and mutual agreement between the parties. If all the
necessary elements of a contract are present, the contract is considered valid, and both parties are
legally bound by its terms.

An example of an enforceable contract would be a rental agreement between a landlord and a

tenant. If the tenant fails to pay the rent, the landlord can take legal action to enforce the contract and
recover the unpaid rent. Similarly, if the landlord fails to provide the agreed-upon services, the tenant
can take legal action to enforce the contract and seek compensation for any damages they may have
suffered.

What makes a contract enforceable?

Approval of both parties must be clearly indicated in the terms of the contract for it to be
enforceable. An exchange of value must also be present for consideration to be valid. Assent or a
"meeting of the minds" must be mutual for a contract to be enforceable.

Contracts that are for the convenience of the parties are contracts that are entered into by the
parties solely for their own convenience. These types of contracts are not intended to create legally
binding obligations or rights but are instead made to facilitate the relationship between the parties
or to provide a framework for their interactions.
An example of a contract for convenience could be a non-disclosure agreement (NDA) between two
parties who are considering entering into a business relationship. The NDA is intended to facilitate
the exchange of confidential information between the parties and to protect the parties' interests by
ensuring that the information is not disclosed to third parties.

Another example of a contract for convenience could be a letter of intent (LOI) between a buyer and
a seller. The LOI outlines the general terms of a potential transaction and is intended to facilitate the
negotiation of a final agreement. While the LOI may contain some binding provisions, such as
confidentiality or exclusivity clauses, it is generally not intended to create legally binding obligations
until a final agreement is reached.

Overall, contracts for convenience are useful tools for parties who are seeking to establish a
framework for their interactions or to facilitate negotiations. However, it is important to carefully
consider the terms of such contracts and to ensure that they accurately reflect the parties' intentions
and expectations.

Another simple example of a contract for convenience could be a memorandum of understanding

(MOU) between two organizations that are considering collaborating on a project. The MOU is a
non-binding agreement that outlines the basic terms and understanding of the collaboration, such
as each party's responsibilities

another simple example of contracts for convenience of the parties

Another simple example of a contract for convenience could be a joint marketing agreement
between two companies. The agreement would outline the terms of the marketing arrangement,
such as the types of marketing activities to be undertaken, the costs associated with those activities,
and the expected outcomes. The agreement would be intended to facilitate the coordination of the
companies' marketing efforts, but would not necessarily create legally binding obligations or rights.

A day-to-day life example of a contract for convenience could be a simple agreement between two
friends who are planning a trip together. The agreement would outline the basic terms of the trip,
such as the dates of travel, the destination, and the activities that the friends plan to undertake. The
agreement might also specify each friend's responsibilities, such as who will book the
accommodations or transportation, and how the costs will be shared.

This agreement is not intended to create legally binding obligations or rights between the friends,
but rather to provide a framework for their trip planning and to ensure that they are on the same
page with regard to their expectations and responsibilities. If one friend were to back out of the trip
or fail to fulfill their responsibilities under the agreement, there would not necessarily be legal
consequences, but the friendship and the trip could be negatively impacted.
The purpose of the Statute is to prevent fraud and perjury in the enforcement of obligations depending
for their evidence on the unassisted memory of witnesses, by requiring certain enumerated contracts
and transactions to be evidenced by a writing signed by the party to be charged.

Statute of Frauds: A statute which requires certain types of contracts to be in writing in order to be
enforceable.

Although statutes of frauds vary somewhat from state to state, the following types of contracts must be
in writing to be enforceable:

(1)contracts for the sale or lease of, or a mortgage on, real property (e.g., land, fixtures);

(2)contracts that cannot, by their terms, be performed within one year after the date the contract was
formed;

(3)collateral contracts, such as promises to answer for or guaranty the debt or duty of another person;

(4)promises made in consideration of marriage (i.e., prenuptial agreements); and

(5)contracts for the sale of goods valued at P500.00 or more.

An executory contract is a contract that has not yet been fully performed or fully executed. It is a
contract in which both sides still have important performance remaining.

An unenforceable contract is a legal agreement that cannot be enforced in a court of law. There are
several reasons why a contract might be unenforceable, including:

Lack of capacity: If one of the parties to the contract is not legally capable of entering into the
agreement, the contract may be unenforceable. For example, a contract entered into by a minor may be
considered unenforceable.

Illegal subject matter: If the subject matter of the contract is illegal, the contract may be considered
unenforceable. For example, a contract for the sale of illegal drugs would be unenforceable.

Fraud or misrepresentation: If one party to the contract was deceived or misled by the other party, the
contract may be considered unenforceable. For example, if a seller misrepresented the quality of a
product in order to induce a buyer to purchase it, the contract may be considered unenforceable.

Duress or coercion: If one party to the contract was forced or threatened into entering into the
agreement, the contract may be considered unenforceable. For example, a contract signed under threat
of physical harm would be unenforceable.
An example of an unenforceable contract could be a contract for the sale of stolen goods. Since the
subject matter of the contract is illegal, the contract would be unenforceable. Another example could be
a contract entered into by a minor, as minors lack the legal capacity to enter into binding contracts.

It's not entirely clear what you mean by "the written instrument," but if you're referring to a legal
document or contract that has not been revised or updated within a 10-year period, it may depend on
the specific circumstances and governing laws.

In some cases, the document may still be valid and enforceable, but it's possible that changes in laws or
circumstances may have rendered certain provisions outdated or inapplicable. In such cases, it may be
advisable to review and revise the document to ensure that it accurately reflects the current situation
and legal requirements.

It's also possible that the document may have expired or become invalid if it had a specific time limit or
condition attached to it. Again, this would depend on the specific language and provisions of the
document, as well as applicable laws and regulations.

Overall, if you have concerns about the validity or enforceability of a legal document that has not been
updated in a significant amount of time, it may be best to consult with a qualified attorney or legal
expert who can provide guidance based on the specific facts and circumstances of your situation.

La Señora Galo

what will happen to the contract if the written instrument was not updated within the 10 year period.
and give example

The answer to this question will depend on the specific terms of the contract and the governing law in
the relevant jurisdiction. In general, a contract that has not been updated within a 10-year period may
still be enforceable, but it's possible that changes in circumstances or legal requirements could impact its
validity or interpretation.

For example, let's say that a business enters into a lease agreement with a landlord for a commercial
property, and the lease includes provisions for rent payments, maintenance responsibilities, and other
terms. The lease agreement is signed in 2010 and has not been updated since then.
If the business continues to occupy the property and make rent payments without issue, the lease may
still be enforceable, even if it has not been updated within the 10-year period. However, if there have
been changes in local zoning laws, building codes, or other regulations that impact the property or the
business's use of it, those changes could affect the interpretation or enforcement of certain provisions in
the lease. In such cases, it may be advisable to review and update the lease to ensure that it reflects the
current legal requirements and circumstances.

Another example might be a contract for the sale of a piece of property, which was signed in 2011 and
has not been updated since then. If the contract specifies a purchase price, a closing date, and other
terms, those provisions may still be enforceable, but changes in property values, financing options, or
other factors could impact the parties' obligations and rights under the contract. In such cases, it may be
advisable to review and update the contract to reflect the current market conditions and legal
requirements.

It's not entirely clear what you mean by "the written instrument," but if you're referring to a legal
document or contract that has not been revised or updated within a 10-year period, it may depend on
the specific circumstances and governing laws.

In some cases, the document may still be valid and enforceable, but it's possible that changes in laws or
circumstances may have rendered certain provisions outdated or inapplicable. In such cases, it may be
advisable to review and revise the document to ensure that it accurately reflects the current situation
and legal requirements.

It's also possible that the document may have expired or become invalid if it had a specific time limit or
condition attached to it. Again, this would depend on the specific language and provisions of the
document, as well as applicable laws and regulations.

Overall, if you have concerns about the validity or enforceability of a legal document that has not been
updated in a significant amount of time, it may be best to consult with a qualified attorney or legal
expert who can provide guidance based on the specific facts and circumstances of your situation.
La Señora Galo

what will happen to the contract if the written instrument was not updated within the 10 year period.
and give example

The answer to this question will depend on the specific terms of the contract and the governing law in
the relevant jurisdiction. In general, a contract that has not been updated within a 10-year period may
still be enforceable, but it's possible that changes in circumstances or legal requirements could impact its
validity or interpretation.

For example, let's say that a business enters into a lease agreement with a landlord for a commercial
property, and the lease includes provisions for rent payments, maintenance responsibilities, and other
terms. The lease agreement is signed in 2010 and has not been updated since then.

If the business continues to occupy the property and make rent payments without issue, the lease may
still be enforceable, even if it has not been updated within the 10-year period. However, if there have
been changes in local zoning laws, building codes, or other regulations that impact the property or the
business's use of it, those changes could affect the interpretation or enforcement of certain provisions in
the lease. In such cases, it may be advisable to review and update the lease to ensure that it reflects the
current legal requirements and circumstances.

Another example might be a contract for the sale of a piece of property, which was signed in 2011 and
has not been updated since then. If the contract specifies a purchase price, a closing date, and other
terms, those provisions may still be enforceable, but changes in property values, financing options, or
other factors could impact the parties' obligations and rights under the contract. In such cases, it may be
advisable to review and update the contract to reflect the current market conditions and legal
requirements.

La Señora Galo

explain and give example on article 1360 on business law and obligations

Article 1360 of the Civil Code of the Philippines, which pertains to Business Law and Obligations,
provides that contracts shall be obligatory, in whatever form they may have been entered into, provided
all the essential requisites for their validity are present. In simpler terms, this means that as long as a
contract meets the requirements for it to be considered valid, it is binding and enforceable regardless of
the form in which it was made.
For example, a verbal agreement between two parties to buy and sell goods may be just as valid and
binding as a written contract, as long as all the essential elements of a valid contract are present, such as
the offer and acceptance of the terms of the agreement, the capacity of the parties to enter into the
agreement, and the presence of a lawful object and consideration.

However, it's worth noting that some types of contracts are required by law to be in writing to be valid
and enforceable. For instance, contracts for the sale of real property, contracts that cannot be performed
within one year, and contracts involving a large amount of money or financial obligation, may be
required to be in writing and signed by the parties to be valid.

In addition, certain types of contracts may require specific formalities or procedures to be followed in
order to be considered valid and enforceable. For example, contracts involving the sale of securities may
need to comply with regulations set by the Securities and Exchange Commission.

Overall, Article 1360 of the Civil Code of the Philippines underscores the importance of ensuring that all
the necessary elements of a valid contract are present, regardless of the form in which the contract is
entered into, to ensure that the contract is binding and enforceable.

La Señora Galo

article 1360. The principles of the general law on the reformation of instruments are hereby adopted
insofar as they are not in conflict with the provisions of this code. explain and give example

Article 1360 of the Civil Code of the Philippines incorporates the principles of the general law on the
reformation of instruments, subject to certain limitations. This means that the provisions of the Civil
Code on contracts and obligations will apply to any situation involving the reformation of an instrument,
but these provisions will be interpreted in accordance with the principles of the general law on
reformation.

The general law on the reformation of instruments allows for a court to modify the terms of a contract or
other legal instrument if it can be shown that the instrument fails to reflect the true intention of the
parties due to a mistake, fraud, duress, undue influence, or other factors. This is known as "reformation"
of an instrument.
For example, let's say that two parties entered into a contract for the sale of a piece of land, but there
was a mistake in the description of the property. If the mistake was due to a typographical error or a
misunderstanding, the court may order the reformation of the contract to correct the error and ensure
that the true intention of the parties is reflected.

Similarly, if a contract was entered into under duress or undue influence, the court may order the
reformation of the contract to remove any terms or provisions that were the result of the improper
influence, and to ensure that the terms of the contract reflect the true intention of the parties.

Overall, Article 1360 of the Civil Code of the Philippines provides for the application of the general law
on the reformation of instruments in situations where a legal instrument, such as a contract or
agreement, fails to reflect the true intention of the parties. However, any reformation of an instrument
must be consistent with the provisions of the Civil Code and applicable laws.