BM2304

Instruction: Carefully read the scenarios/instructions provided. Briefly explain or state the rule or reason for
your answers. (5 points each)

Problem: Nancy, Candy’s guardian when she was 15 years old, sold Candy’s P4 million worth of one-bedroom
condominium unit for P3,500,000 to Dante.

a. Is the contract valid? Why?

Due to Candy's minority status at the time of the transaction, Dante and Nancy's agreement to sell
Nancy's condominium unit might be void. Candy was only 15 when Nancy sold the condominium on
her behalf, hence Candy was not of legal age to enter into a legally binding contract. Though there are
rare exceptions, such those concerning necessities like food, clothes, or housing, minors are not legally
permitted to engage into contracts. Selling a condo would not be considered a necessary transaction. As
a result, Candy will likely be able to void the agreement at her discretion, giving her the freedom to
accept or reject it whenever she reaches majority age.

b. Would your answer be the same if Nancy sold the condominium unit for P2 million?

Yes, the reaction would remain the same even if Nancy sold the condominium for P2 million. The
validity of the contract in the main is determined by Candy's minority status at the time of the purchase,
not by the price of the condo unit. Even if Candy had been a minor at the time of the sale, the agreement
would still be voidable.

c. Suppose the contract is rescissible and rescission can take place. How does it affect the parties?

In the event that the contract is revocable, Candy, even as an adult, may elect to terminate it due to her
status as a minority at the time of the transaction. Recalling the agreement would effectively make it
null and void by putting the parties back in their pre-contractual positions. In this case, Nancy would
have to give back the P3,500,000 she took from Dante and Candy would be entitled get the
condominium unit back. Contracts entered into by minors before they reach legal adulthood are
protected from being unfairly bound by revocation.

Rubric for scoring:

CRITERIA PERFORMANCE INDICATORS POINTS
Provided the correct and accurate answer according to the
Content provisions of the law. 3
Organization of Expressed the points in a clear and logical arrangement of
ideas ideas in 2
the paragraph
Total 5

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STI
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