Article 1318 to 1335 PDF

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These articles are from 1318 up to 1335 of business law (obligations and contracts)....

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ESSENTIAL REQUISITES OF CONTRACTS ARTICLE 1318. “There is no contract unless the following requisites occur: 1. Consent of the contracting parties; 2. Object certain which is the subject matter of the contract; 3. Cause of the obligation which is established” CLASSES OF ELEMENTS OF CONTRACTS 1. Common – present in contracts (consent, object, cause) 2. Special – present in certain contracts - Real Contracts (delivery) - Solemn of Formal Contracts (compliance with formalities required by law) ARTICLE 1319. “Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a counteroffer. Acceptance made by letter or telegram does not bind the offeror 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.” REQUISITES OF CONSENT 1. 2. 3. 4. 5.

There must be two or more parties; The parties should be CAPABLE or CAPACITATED; There must be NO VITIATION of consent; (must be voluntarily) There must be NO CONFLICT between what was expressly declared and what was really intended; Intent must be declared PROPERLY.

COUNTEROFFER – extinguishes the original offer ARTICLE 1320. “An acceptance may be express or implied.” (verbal/written) ARTICLE 1321. “The person making the offer may fix the time, place, and manner of acceptance, all of which must be complied with.” *** Any act contrary to the requirements of the offeror, constitutes a counteroffer or counter proposal. ARTICLE 1322. “An offer made through an agent is accepted from the time acceptance is communicated to him.” -

Offeror (who makes the offer), offeree (who either accept or reject the offer), agent

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Agent are extension of the personality of his principal.

ARTICLE 1323. “An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is conveyed.”

ARTICLE 1324. “When the offeror has allowed the offeree a certain period to accept, the offer may be withdrawn at any time before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, as something paid or promised.” *** Mere offer is withdrawable. OPTION CONTRACT – usapan na binigyan ng deadline (ex. Ten-day period) to accept the contract OPTION MONEY – money paid or promised for the option ARTICLE 1325. “Unless it appears otherwise, business advertisements of things for sale are not definite offers, but mere invitations to make an offer.” Definite offer: FOR SALE: 100 Square Meter Lot, with 2-storey house located at 123, ABC St., Malate, Manila for Php 10,000,000.00 in cash. Mere invitation to make offer: FOR SALE: 100 Square Meter Lot, at 10 million to 20 million a lot at 123, ABC St., Malate, Manila. ARTICLE 1326. “Advertisements for bidders are simply invitations to make proposals, and the advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears.”

*** BIDDERS – making an offer *** ADVERTISER – inviting bidders to make proposals ARTICLE 1327.

“The following cannot give consent to a contract: 1. Unemancipated minors; 2. Insane or demented persons, and deaf-mutes who do not know how to write.” ARTICLE 1328. “Contracts entered into during a lucid interval are valid. Contracts agreed to in a state of drunkenness or during a hypnotic spell are voidable.”

*** Insane people are capable of giving consent during lucid interval (valid – must be prove) ARTICLE 1329. “The incapacity declared in article 1327 is subject to the modifications determined by law, and is understood to be without prejudice to special disqualifications established in the laws.” ARTICLE 1330. “A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is voidable.” *** Consent must be intelligently given *** Consent must be free and voluntary *** Consent must be conscious or spontaneous ARTICLE 1331. “In order that mistake may invalidate consent, it should refer to the substance of the thing which is the object of the contract, or to those conditions which have principally moved one or both parties to enter into the contract. Mistake as to the identity or qualifications of one of the parties will vitiate consent only when such identity or qualifications have been the principal cause of the contract. A simple mistake of account shall give rise to its correction.” *** When does error or mistake vitiates consent? *** When can you say that the error is substantial? – determine if one party will enter a contract even if he knows there is a mistake – not substantial error SUBSTANTIAL ERROR – mistakes are known, and consent is not given 1. Mistake regarding the object of contracts 2. Mistake regarding the condition of the contract 3. Mistake regarding the identity or qualifications of one party ARTICLE 1332. “When one of the parties is unable to read, or if the contract is in a language not understood by him, and mistake or fraud is alleged, the person enforcing the contract must show that the terms thereof have been fully explained to the former.” PRESUMPTION: One always act with due care and signs with full knowledge of the consent of the document. (not applicable in art. 1332.) ARTICLE 1333.

“There is no mistake if the party alleging it knew the doubt, contingency or risk affecting the object of the contract.” *** The party is willing to take risks, you cannot claim mistake. ARTICLE 1334. “Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated, may vitiate consent.” ARTICLE 1335. “There is violence when in order to wrest consent, serious or irresistible force is employed. There is intimidation when one of the contracting parties is compelled by a reasonable and wellgrounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent. To determine the degree of intimidation, the age, sex and condition of the person shall be borne in mind. A threat to enforce one's claim through competent authority, if the claim is just or legal, does not vitiate consent.”...