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Essential Requisites of Contracts
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Essential Requisites of Contracts






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Essential Requisites of Contracts Presentation Transcript

  • 2. Article 1318.There is no contract unless thefollowing requisites concur:(1) Consent of the contracting parties;(2) Object certain which is the subjectmatter of the contract;(3) Cause of the obligation which isestablished. (1261)
  • 3. Article 1319.Consent is manifested by the meeting of theoffer and the acceptance upon the thing andthe cause which are to constitute the contract.The offer must be certain and the acceptanceabsolute. A qualified acceptance constitutes acounter-offer.Acceptance made by letter or telegram doesnot bind the offerer except from the time itcame to his knowledge. The contract, in such acase, is presumed to have been entered into inthe place where the offer was made. (1262a)
  • 4. Article 1320.An acceptance may be express orimplied. (n)
  • 5. Article 1321.The person making the offer may fixthe time, place, and manner ofacceptance, all of which must becomplied with. (n)
  • 6. Article 1322.An offer made through an agent isaccepted from the time acceptanceis communicated to him. (n)
  • 7. Article 1323.An offer becomes ineffective upon thedeath, civil interdiction, insanity, orinsolvency of either party beforeacceptance is conveyed. (n)
  • 8. Article 1324.When the offerer has allowed the offereea certain period to accept, the offer maybe withdrawn at any time beforeacceptance by communicating suchwithdrawal, except when the option isfounded upon a consideration, assomething paid or promised. (n)
  • 9. Article 1325.Unless it appears otherwise, businessadvertisements of things for sale are notdefinite offers, but mere invitations tomake an offer. (n)
  • 10. Article 1326.Advertisements for bidders are simplyinvitations to make proposals, and theadvertiser is not bound to accept thehighest or lowest bidder, unless thecontrary appears. (n)
  • 11. Article 1327.The following cannot give consent to acontract:(1) Unemancipated minors;(2) Insane or demented persons, anddeaf-mutes who do not know how towrite. (1263a)
  • 12. Article 1328.Contracts entered into during alucid interval are valid. Contractsagreed to in a state ofdrunkenness or during a hypnoticspell are voidable. (n)
  • 13. Article 1329.The incapacity declared in Article 1327is subject to the modificationsdetermined by law, and is understoodto be without prejudice to specialdisqualifications established in thelaws. (1264)
  • 14. Article 1330.A contract where consent is giventhrough mistake, violence,intimidation, undue influence, orfraud is voidable. (1265a)
  • 15. Article 1331.In order that mistake may invalidateconsent, it should refer to the substance ofthe thing which is the object of the contract,or to those conditions which have principallymoved one or both parties to enter into thecontract.Mistake as to the identity or qualifications ofone of the parties will vitiate consent onlywhen such identity or qualifications havebeen the principal cause of the contract.A simple mistake of account shall give rise toits correction. (1266a)
  • 16. Article 1332.When one of the parties is unable toread, or if the contract is in alanguage not understood by him, andmistake or fraud is alleged, the personenforcing the contract must show thatthe terms thereof have been fullyexplained to the former. (n)
  • 17. Article 1333.There is no mistake if the partyalleging it knew the doubt,contingency or risk affecting the objectof the contract. (n)
  • 18. Article 1334.Mutual error as to the legal effect ofan agreement when the real purposeof the parties is frustrated, may vitiateconsent. (n)
  • 19. Article 1335.There is violence when in order to wrest consent,serious or irresistible force is employed.There is intimidation when one of the contractingparties is compelled by a reasonable and well-grounded fear of an imminent and grave evil uponhis person or property, or upon the person orproperty of his spouse, descendants or ascendants,to give his consent.To determine the degree of intimidation, the age, sexand condition of the person shall be borne in mind.A threat to enforce ones claim through competentauthority, if the claim is just or legal, does notvitiate consent. (1267a)
  • 20. Article 1336.Violence or intimidation shall annulthe obligation, although it mayhave been employed by a thirdperson who did not take part in thecontract. (1268)
  • 21. Article 1337.There is undue influence when a persontakes improper advantage of his power overthe will of another, depriving the latter of areasonable freedom of choice. The followingcircumstances shall be considered: theconfidential, family, spiritual and otherrelations between the parties, or the fact thatthe person alleged to have been undulyinfluenced was suffering from mentalweakness, or was ignorant or in financialdistress. (n)
  • 22. Article 1338.There is fraud when, throughinsidious words or machinations ofone of the contracting parties, theother is induced to enter into acontract which, without them, hewould not have agreed to. (1269)
  • 23. Article 1339.Failure to disclose facts, whenthere is a duty to reveal them, aswhen the parties are bound byconfidential relations, constitutesfraud. (n)
  • 24. Article 1340.The usual exaggerations in trade,when the other party had anopportunity to know the facts, arenot in themselves fraudulent. (n)
  • 25. Article 1341.A mere expression of an opinion doesnot signify fraud, unless made by anexpert and the other party has relied onthe formers special knowledge. (n)
  • 26. Art. 1342.Misrepresentation by a third persondoes not vitiate consent, unless suchmisrepresentation has createdsubstantial mistake and the same ismutual. (n)
  • 27. Article 1343.Misrepresentation made in good faith isnot fraudulent but may constituteerror. (n)
  • 28. Article 1344.In order that fraud may make acontract voidable, it should be seriousand should not have been employed byboth contracting parties.Incidental fraud only obliges theperson employing it to pay damages.(1270)
  • 29. Article 1345.Simulation of a contract may beabsolute or relative. The former takesplace when the parties do not intend tobe bound at all; the latter, when theparties conceal their true agreement. (n)
  • 30. Article. 1346.An absolutely simulated or fictitiouscontract is void. A relativesimulation, when it does notprejudice a third person and is notintended for any purpose contrary tolaw, morals, good customs, publicorder or public policy binds theparties to their real agreement.