This document outlines the essential requisites of contracts under Philippine law, including consent, parties' capacity to contract, offer and acceptance, cause, and object. It discusses the rules regarding consent, such as the definition of consent and when it is vitiated by mistake, violence, intimidation, undue influence or fraud. It also covers offer and acceptance, including the requirements for a valid offer and acceptance. Additionally, it defines the concepts of cause and object of a contract and the relevant requisites.

1. ESSENTIAL REQUISITES OF
CONTRACTS
Consent of the Contracting Parties

2. CONSENT MEANING
Consent – is the
manifestation of the meeting of
the offer and the acceptance
upon the thing and the cause
which are to constitute the
contract. (Art. 1319)

3. RULES ON OFFER
1. The offer must be certain
(Art. 1319) because there
could be no meeting of
minds if it is vague or not
definite. It must be
“definite, complete and
international.”

4. NATURE OF ADVERTISEMENTS
a) Business advertisements of things for sale
are not definite offers, but mere invitations
to make an offer unless it appears
otherwise. (Art. 1325)
b) Advertisements for bidders are merely
invitations to make proposals and the
advertiser is not bound to accept the
highest or lowest bidder, unless the
contrary appears. (Art. 1326)

5. RULES ON OFFER
2. An offer becomes ineffective upon the death, civil
interdiction, insanity or insolvency of either party
before acceptance is conveyed. (Art. 1323)
3. When the offer has allowed the offeree a certain
period to accept, the offer may be withdrawn at any
time before acceptance by communicating such
withdrawal, except when the option is found upon a
consideration as something paid or promised. (Art.
1324)

6. OPTION CONCEPT
Option – is a contract
whereby the offeror gives the
offeree a certain period within
which to buy or not to buy a
certain object foe a fixed
prince. It may or may not be
for a valuable consideration

7. RULES ON ACCEPTANCE
1. The acceptance must be
absolute. (Art. 1319)
a. If the acceptance is qualified its
constitutes a counter – offer (Art.
1319)
b. If the offer fixes the time, place
and manner of acceptance, all
must be complied with. (Art.
1321)

8. RULES ON ACCEPTANCE
2. Acceptance made by letter or telegram does not bind the
offerer except from the time it came to his knowledge. The
contract in such a case is presumed to have been entered
into the place where the offer was made. (Art.1319)
3. Acceptance may be express or implied. (Art.1320)
4. An offer made through an agent is accept from the time it
is communicated to him. (Art. 1322)

9. RULES ON CONSENT
1. The parties must have the capacity to enter into a
contract. The following cannot give consent to
contract.
a.Unemancipated minors
Emancipated takes place by the attainment of the age
of majority which is eighteen years. (Art.234, Family Code, as
amended)
b. Insane or demented persons
Hower, contracts entered into during lucid intervals
are valid. (Art. 1328) Lucid interval refers to the period of
temporary sanity of an insane person.
c. Deaf – mutes who do not know how write

10.  A contract entered into by the above named
incapacitated person is voidable. (Art. 1390).
However, when both parties are incapable of giving
consent to a contract, the contract is
unenforceable.(Art. 1403)
 The incapacity aforementioned is subject to the
modifications determined by law, and is understood
to be without prejudice to special disqualifications
established in the laws. (Art. 1329)
 Thus, an incapacitated person must pay a
reasonable price for food and other necessaries
sold to him. The sale here is valid. (Art. 1409)

11. RULES ON CONSENT
2. Contracts agreed to in a state of
drunkenness or during in hypnotic spell are
voidable. (Art. 1328)
3. A contract where consent is given through
mistake, violence, intimidation, undue
influence, or fraud is voidable. (Art. 1330)

12. THESE FIVE ARE REFERRED TO AS THE CAUSES THAT
VITIATE CONSENT OR THE VICES OF CONSENT.
1. When mistake will invalidate consent.
a. if the mistake refers to the substance of the
thing which is the object of the contract. (Art. 1331)
b. if the mistake refers to those conditions
which have principally moved one or both parties to
enter into the contract. (Art. 1331)
c. if the mistake refers to the identify or
qualifications of one parties if such identify of
qualifications have been the principal cause of the
contract. (Art. 1331)
d. if the mistake refers to the legal effect of an
agreement when the real purpose of the parties is
frustrated and the same is mutual. (Art. 1334)

13. 2. When mistake does not vitiate consent
a. if the mistake refers to a simple mistake of
account which shall only be corrected.(Art. 1331)
b. if the party alleging it know the doubt,
contingency or risk affecting the object of the contract.
(Art. 1333)
3. Rule when one party is unable to read or does
not understand the languages of the contract
a. if mistake or fraud is alleged the person
enforcing the contract must show that the terms
thereof have been fully explained to the former. (Art.
1332)

14. b. Violence or physical coercion
1. when violence vitiates consent
there is violence when in order to
wrest consent, serious or irresistible force is
employed. (Art. 1335)
c. Intimidation or moral coercion
1. when intimidation vitiates consent
there is intimidation when one of
the contracting parties is compelled by a
reasonable and well grounded fear of an
imminent and grave evil upon his persons or
property (At. 1335)

15. 2. Factors to be considered in determining the
degree of intimidation
a. age
b. sex; and
c. condition of the person. (Art. 1335)
3. When no intimidation exists
no intimidation exists in case of treat to
enforced one’s claim through competent authority if
the claim is just or legal. (Art. 1335)

16. d. Undue influence
1. when undue influence vitiates consent
there 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. (Art. 1337)
2. factors to be considered in determining the
existence of undue influence.
a. confidential, family, spiritual and other
relations of the parties
b. mental weakness
c. ignorance
d. financial distress of the person
alleged to have been unduly influenced.(Art. 1337)

17. e. Fraud
1. when fraud exist (dolo causante)
a. when through the insidious words or
machinations of one of the contracting parties, the other is
introduced to enter into a contract which without them he
would not have agreed to. (Art. 1338)
b. when there is a failure to disclose facts,
when there is a duty to reveal them, as when the parties
are bound by confidential relations. (Art. 1339)
2. requisites to make a contract voidable by
reason of fraud
a. the fraud should be serious incidental
fraud only obliges the person employing it to pay
damages.

18. 3. When no fraud exists
a. In case of the usual exaggerations in
trade, when the other party had an opportunity to
know the facts. (Art. 1340)
b. In case of a mere expression of an
opinion, unless made by an expert and the other
party has relied on the former’s special knowledge.
(Art. 1341)
c. In case of misrepresentation by a
third person, unless such misrepresentation has
created substantial mistake and the same is mutual.
(Art. 1342)
d. If the misrepresentation was made in
good faith. However, the same may constitute error.
(Art. 1343)

19. 4. Kinds of dolo or fraud
a. Fraud in obtaining consent
1. Causal fraud or dolo causante –
Fraud without consent would not have been given. It
renders the contract voidable.
2. Incidential fraud or dolo causante -
Fraud without consent would have still been given but
the person giving it would have agreed on different
terms. The contract is valid but the party employing it
shall be liable for damages.
b. Fraud in the performance of the
obligation.
this is the deliberate act of evading
fulfillment of an obligation in a normal manner.

20. STIMULATED CONTRACT, CONCEPT AND KINDS
1. Absolutely stimulated contract – one where
the parties do not intend to be bound at all.
(Art. 1345)
2. Relatively simulated contract – one where
the parties here are bound by their true
agreement. (Art. 1345)

21. OBJECT OF
CONTRACTS
What may be the object of contracts

22. OBJECT OF CONTRACTS
1. All things which are not outside the
commerce of men, including future things.
(Art. 1347)
2. All rights which are not in transmissible.
(Art. 1347)
3. All services which are not contrary to law,
morals, good customs, public order or
public policy. (Art. 1347)

23. REQUISITES OF OBJECT OF A CONTRACT
1. It must be within the commerce of men. (Art.
1347)
2. It must be transmissible. (Art. 1347)
3. It must not be contrary to law, morals, good
customs, public order or public policy. (Art. 1347)
4. It must not be impossible. (Art. 1348)
5. It must be determinate as to its kind or if its
quantity is not determinate, it must be possible to
determine the same without the need of a new
contract between the parties. (Art. 1349)

24. CAUSE OF CONTRACT
Cause, Concept
It is the essential reason why a
party enters into a contract

25. CAUSE OF CONTRACTS
1. Onerous contract – here, the cause for
each contracting party is the pre station or
promise of a thing or service by the other.
(Art. 1350)
2. Remuneratory contract – here, the cause
is the service or benefit which is
remunerated. (Art. 1350)
3. Gratuitous, lucrative or contract of pure
beneficence – the cause is the liberality of
the benefactor. (Art. 1350)

26. REQUISITES OF CAUSE
1. It must exist.
a. it is presumed that the cause, exists and it is
lawful, even of not stated in the contract, unless the
debtor proves the contrary. (Art. 1354)
b. contracts without cause produce no effect
whatsoever. (Art. 1352)
2. It must be lawful
contacts with unlawful cause produce no effect
whatsoever. The cause is unlawful if it is contrary to
law, morals, good customs, public order or public
policy. (Art. 1352)
3. It must be true.