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A. 1327

Cannotgive

1. unemancipated minors

Consent toa

2. insane or demented, deaf-mutes [who do notknow how to write]

contract

[U IDD] Voidable contract one of the parties is incapable of

giving consent- valid and binding until it is annulled by a proper

action in court- can be ratified

Unemancipated

- persons who have not yet reached the age ofmajority [18]

minors - subject to parental authority* emancipated through:

1. attainment of the age of majority2. marriage

3. concession recorded in the Civil Register, ofthe father or mother

who exercises parental authority

Insane or - must exist at the time of contractingdemented

Deaf-mutes - deaf and dumb- contract is valid 1. [if] knows how to write

Reason: capable of giving intelligent consent

2. knows how to read but cannotwrite

Disqualification,

- can be victims of fraud

reason Reason: not capable of understanding orknowing the nature or

Import of their actions

Can enter - only through a parent or guardiancontract

A. 1328

Contract, - entered during a lucid interval

valid

Contract, - agreed to: 1. state of drunkenness

voidable 2. during hypnotic spell

Lucidinterval

- temporary period of sanity

- contract, valid entered into by an insane or

demented during lucidintervalProvided: Shown that there is FULL RETURN OF

THE MIND TOSANITY to enable him to understand the

contract he is enteringinto.

Drunkenness

- impair the capacity to give intelligent consent

& hypnoticspell,

- equivalent to temporary insanity

Effect. - not required procured by the circumvention[avoidance] of the other

party

A. 1329 Incapacity declared in 1327 -1. subject to modifications determined by law

2. without prejudice to the specialdisqualifications established in the

law

General rule: Contract entered into byunemancipated minors, insane or

Demented and deaf-mutes are VOIDABLE.

[N L G M V] Exceptions: Modification by the law to give validconsent:1. when necessaries such as food are sold anddelivered to a minor or

other person without capacity to act, he must paya reasonable price

therefore2. Minor [18 yrs. Old or above] may contract for life,health and accident

Insurance

Provided: 1. Insurance is taken on his life

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2. Beneficiary appointed is the minorsestate or minors

Father, mother, husband, wife, child,brother or sister3. contract, valid entered through a guardian orlegal representative4. contract, valid minor misrepresented his ageand convincingly led

The other party to believe in his legal capacity5. contract, valid minor [bet. 18 and 21 yrs.]voluntarily pays a sum of

Money or delivers a fungible thing in fulfillmentof his obligation and

The oblige has spent or consumed it in good faith

Special dis- [under rules of court]Qualifications

1. suffering the accessory penalty civil interdiction

[incompetents]

2. hospitalized lepers

[P U S H CD]

3. prodigals [spendthrifts]

4. deaf and dumb [unable to read and write]5. unsound mind [although they may have lucidintervals]

6. cannot take care of themselves and manage theirproperties,

[A D W O] a. ageb. diseasec. weak mindd. other similar causes

*becoming an easy prey for deceit andexploitation

*above: valid but voidable

[H I M O] a. insolvents until discharged [insolvency lawa1956]

b. married women in cases specified by law [a39]c. husband & wife with respect to sale of property toeach other [a1490]d. other persons esp. disqualified by law [a1491,

1789]

A. 1330

Voidable - consent is given through:contract 1. mistake

[M U V I F] 2. violence3. intimidation4. undue influence5. fraud

Consent,valid

1. intelligent capacity to act

[F I C] 2. free and voluntary no vitiation of consent byreason of violence orIntimidation3. conscious or spontaneous no vitiation ofconsent by reason of

Mistake, undue influence or fraud

Vices of consent

- making the contract voidable [aside from 1.incapacity

[vitiateconsent

2.simulation of contract]

Or render it 1. mistake or errorDefective] 2. violence or force

3. intimidation or threat/duress4. undue influence

5. fraud or deceit

Causes vitiating consent vs. Causes ofincapacity

1. temporary - more orless permanent

2. [refers: contract itself - personentering into contract

A. 1331 Mistake invalidates consent when it refers to:Mistakes offact

1. substance of the thing [object of the contract]

2. conditions which have principally moved one orboth parties to enterInto contract

3. Mistake as to identity or qualifications of one ofthe parties, vitiates

Consent when:

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Identity or qualifications principal cause of thecontract

Simple mistake of account give rise to itscorrection

Mistake /error

- false notion of a thing/fact material to the contract

Mistake,nature

1. may be:

a. factb. law

1331 contemplates MISTAKE OF FACT arise fromignorance or lack of

Knowledge

2. substantial mistake of fact the party would nothave given hisConsent had he known of the mistake

*not every mistake will vitiate consent and make acontract voidable

#1.Substanceof

Includes mistake regarding NATURE OF THECONTRACT CP believe

The thing[object

That the other is selling, when in truth and in fact,both are buying.

Of the

contract]

Mistake offact,

1. incidents of a thing or accidental qualities nottaken as principal

Doesntvitiate

Consideration of the contract

consent Unless: error is caused by fraud of other party[Q I I M] Ex. A. accessibility of a residential house to means

of transportationB. maximum speed of car

2. quantity or amount only gives rise to correction

Unless: it goes to the essence of the contract

3. motivesUnless: motives constitute a condition or cause ofthe contract

4. identity or qualificationsReason: contracts are entered into more inconsideration of the things

Or services which form their subject matter ratherthan of persons

[I R O] Except: principal cause of the contract

a. obligations to dob. requiring personal qualifications of the debtorc. involving trust and confidence

[D A G C C] i. contracts of partnership

ii. agencyiii. commodatum

iv. guarantyv. deposit

Examples: As to thing/object:

A BBuying a breeding cowBut B is selling a barren cow

As to conditions:

A BSelling land: 20K cashB buying the land thinking it is payable ininstallments

As to identity/qualifications:A BSold carA thought that B was a doctor [in fact lawyer]MISTAKE IS NOT MATERIAL AS TO AVOID THECONTRACT

A BDonated carA thought B was his half-brotherMISTAKE IS MATERIAL Reason: Identity was aprincipal reason/consideration for the donation.

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Effect of Simple

Simple mistake of calculation or account does notavoid a contract

Mistake of Reason: it does not affect essential requisitesaccount Defect merely in the computation of the account

or amount which can

Be corrected

Example:

S BSold parcel of land: 567 square meters; P415/sq. m.[in] Document of sale: purchase price P285,305 [infact 235,305]

Mistake not make the contract voidable- only give rise to correction by putting the true

amountA. 1351 -particular motives [in entering in a contract]

different from the cause

Motive - purely personal or private reason in entering into a

contract- different from the cause of contract

Causes vs. - causes vs. -motive

Motive 1. immediate or -remote or indirect reason.direct reason2. always known to the other - maybe unknown3. essential element - not

4. illegality affects the validity - doesnot render it void

Motive may be the cause if it is founded upon afraudulent purposeTo prejudice a third person

Example S B-sells land: 100k- S cause: 100k- S motive: to use the money in business / buy

another land

With ones motive, the law is not concerned

[if] S motive: to defraud C [creditor] who has a rightto go after the land.for its satisfaction of an indebtedness of SC may ask the court for the rescission orcancellation of the sale

A. 1352 Contracts without cause / unlawful cause produceno effectCause, unlawful contrary to law, morals, goodcustoms, public order,

.public policy

A. 1353 Statement of a false cause [in contracts] renderthem void,

.if it should not be proved that they werefounded upon another

.cause which is true and lawful

Cause,requisites

1. exist at the time the contract is entered into

[L E T] 2. lawful

3. true or real

Absence of - total lack of any valid consideration for thecontract

Cause,effect

- confer no right

- no legal effect

Absolutely simulated/fictitious inexistent / void

Failure ofcause,

- does not render a contract void

effect*Adequacy of cause not a ground for relief

Failure to pay the stipulated price - does notconvert the contract into.one without cause

Contract of sale, void without cause [where thepurchase price, which

.appears as paid, has in fact never been paid by the

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buyer to the seller

Illegality of - there is cause but unlawful or illegal

Cause,effect

- unlawful cause null and void

Example: promise of marriage based upon carnalconnection

Person accused of the crime obliges

himself to give a sum ofMoney in consideration of the promise

on the part of theOblige to refrain from testifying

against him

Falsity ofcause

-contract states a valid consideration but suchstatement is not true

effect

False cause - erroneous or simulated

- erroneous renders a contract void- void reason: the same does not actually exist

-simulated does not always produce its effect.reason: hidden but true cause is sufficient to

support the contract

*if the parties can show that there is another causewhich is true andLawful, the parties shall be bound their trueagreement

Examples D C

- promised to give 1k as payment for past servicesallegedly rendered.by C, which in truth and in fact have not beenrendered / for a carabao

Which unknown to D is already dead

-Ds cause, erroneous: service renumerated orpromise of C to sell the

.carabao reason: based on facts believed to beexisting, but really

.inexistent

S B- sells parcel of land, 1M price of the land stated

- if the statement is false no contract of sale

[f] S can prove that its founded upon anothercause, as when B has.exchanged his car for the land contract of barter

or exchange - valid- statement of the price is simulated reason:willfully made

- there is in fact real cause but it is not the onestated in the contract

A. 1354 [although] cause not stated in the contract- presumed it exists and lawful [unless debtorproves otherwise]

Example M P- issued a promissory note, 30 days after date, Ipromise to pay P or

.order the amount of 1k. signed M-although no mention n of cause/consideration lawpresumes that M.must have received a cause for the debt and islawful.If M claims otherwise burden of proof

A. 1355 Lesion or inadequacy of cause does not invalidatea contract

[F U M] .unless there is: fraud, mistake or undue influence

Lesion - any damage caused by the fact that the price isunjust or inadequate- injury suffered in consequence of inequality ofsituation [one party who.does not receive the full equivalent for what hegives in a commutative.contract, like sale]

Exceptions-

Lesion will invalidate a contract:

1. fraud, undue influence, mistake

2. cases specified by law

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Chapter 3 Contract obligatory in whatever form provided allessential requisites

Form of .are present for validityContracts [law requires] contract be in some form in order to

be valid or enfor-.ceable requirement: absolute / indispensable

Form of contract

- manner in which a contract is executed ormanifested

Contract - may be: oral or in writing / partly oral or partlywriting- in writing public / private instrument