[OBLICON] Contracts: Ch2. Essential Requisites

What happens to a contract if one of the three essential requisites—consent, object, or cause—is missing?

If any of these elements is absent, there is no contract at all, and the agreement is considered void from the beginning (void ab initio). [Art. 1318]

Why are "deaf-mutes who cannot write" singled out?Why is "consent" considered the "soul" of a contract under Article 1318?

Consent represents the meeting of the minds between the parties, which is the very foundation of an agreement. [Art. 1318]

Is a contract signed by a mentally ill person always voidable?What does the requirement of an "object certain" mean for the validity of a contract?

It means the subject matter of the contract must be definite or at least determinable without the need for a new agreement between the parties.

How does the law define the "cause" of an obligation in a contract?

The cause is the essential reason or the "why" that moves the parties to enter into the contract, such as the price in a sale or the item being purchased.

Must all three requisites be present at the same time for a contract to be born?

Yes, the law uses the word "concur," meaning all three elements must exist simultaneously for a valid contract to be perfected.

How is consent legally manifested between two contracting parties?

Consent is manifested when a certain offer meets an absolute acceptance regarding the object and the cause of the contract. [Art. 1319]

What is the legal requirement for an offer to be valid?

The offer must be certain, meaning it is definite enough that acceptance will result in a perfected contract without further negotiation. [Art. 1319]

What happens if a person accepts an offer but adds new conditions or changes the terms?

A qualified acceptance does not perfect the contract; instead, it constitutes a counter-offer that the original offeror must then accept. [Art. 1319]

According to the Cognitive Theory, when is a contract perfected if the acceptance is sent by mail or telegram?

The contract is perfected only from the moment the acceptance comes to the actual knowledge of the offeror. [Art. 1319]

Where is a contract presumed to have been entered into if the parties are in different locations?

The law presumes the contract was entered into in the place where the offer was originally made. [Art. 1319]

Can a person accept an offer without explicitly saying or writing "I accept"?

Yes, under Article 1320, acceptance may be implied through the actions or conduct of the party.

What is the legal consequence if an offeree accepts an offer but ignores the specific manner of acceptance required by the offeror?

The acceptance is invalid because Article 1321 requires strict compliance with the time, place, and manner fixed by the person making the offer.

When is a contract perfected if the acceptance is given to an agent of the offeror?

The contract is perfected from the moment the acceptance is communicated to the agent, even if the principal has not yet been notified.q

What happens to an outstanding offer if the offeror dies before the offeree communicates their acceptance?

The offer becomes legally ineffective the moment the offeror dies, as there can no longer be a meeting of the minds.

Does a person’s bankruptcy (insolvency) affect their ability to maintain an open offer?

Yes, insolvency is one of the grounds that causes an offer to become ineffective before acceptance is conveyed.

Can a seller withdraw an offer even if they promised to give the buyer three days to decide?

Yes, the offer may be withdrawn at any time before acceptance is communicated, unless the buyer paid "option money" to keep it open.

What is the legal effect of paying a "consideration" to keep an offer open for a specific period?

It creates a binding option contract that prevents the offeror from withdrawing the offer until the period expires.

Why is a "For Sale" ad in a newspaper generally not considered a binding offer?

Article 1325 treats most business advertisements as mere invitations for the public to make an offer, rather than definite offers themselves.

Is a company holding a public bidding contest legally forced to choose the lowest price submitted?

No, advertisements for bidders are simply invitations to make proposals, and the advertiser is not bound to accept any specific bidder unless explicitly stated.

Who are the three specific groups of people the law declares generally incapable of giving consent to a contract?

The law prohibits unemancipated minors, insane or demented persons, and deaf-mutes who do not know how to write from giving valid legal consent.

Why is a deaf-mute who knows how to write allowed to enter into a contract?

Because the ability to write allows the person to clearly communicate their intent and understand the terms, satisfying the requirement for a meeting of the minds.

What is the legal status of a contract signed by a person with a mental illness during a "lucid interval"?

A contract entered into during a lucid interval is perfectly valid because the person possessed the necessary mental capacity at the exact moment of perfection.

Can a person annul a contract they signed while they were severely drunk or under a hypnotic spell?

Yes, such contracts are considered voidable because the party was temporarily deprived of their reason and freedom of choice.

Does the law ever allow a minor to enter into a binding contract despite the general prohibition in Article 1327?

Yes, Article 1329 allows for modifications determined by law, such as when a minor purchases "necessaries" like food or clothing.

What is a "special disqualification" as mentioned in Article 1329?

It refers to a restriction based on a person’s specific status or profession rather than their mental state, such as a lawyer being prohibited from buying property in litigation.

What is the legal effect of a contract where consent was obtained through one of the five "vices of consent"?

A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is voidable, meaning it remains valid until annulled by a court.

Why does the law classify contracts with "vitiated consent" as voidable rather than void?

They are voidable because all the essential requisites are technically present, but the element of consent is "sick" or defective, giving the victim the choice to either cancel or ratify the deal.

What specific kind of mistake is required for a contract to be declared voidable?

The mistake must refer to the substance of the object or the principal conditions that primarily induced the parties to enter the agreement.

When does a mistake regarding a person's identity affect the validity of a contract?

Mistake in identity or qualifications only vitiates consent if that specific person's identity was the principal cause for making the contract.

What is the legal remedy if there is a simple mathematical error in a contract's calculation?

simple mistake of account does not void the contract but merely gives both parties the right to have the numbers corrected.

Who bears the burden of proof if a person who cannot read claims they were tricked into signing a contract?

The person seeking to enforce the contract must prove that the terms were fully explained to the party who is unable to read or understand the language.

Can a buyer claim "mistake" if they were aware of the risks and uncertainties associated with the object at the time of the sale?

No, there is no legal mistake if the party alleging it knew the doubt, contingency, or risk affecting the object of the contract.

Under what specific condition can a misunderstanding of the law invalidate consent?

Mutual error regarding the legal effect of an agreement may vitiate consent if the parties' real purpose is frustrated by that error.

What is the defining characteristic of "violence" as a vice of consent?

Violence requires the employment of serious or irresistible physical force to wrest consent from a contracting party.

What legal standard is used to determine if a threat constitutes "intimidation"?

Intimidation exists when there is a reasonable and well-grounded fear of an imminent and grave evil upon a person, their property, or their immediate family.

Whose safety, besides the contracting party’s, is protected under the rules of intimidation?

Consent is vitiated if the threat is directed at the person or property of the party's spouse, descendants (children/grandchildren), or ascendants (parents/grandparents).

Why does the law require a judge to consider the age, sex, and condition of the person alleging intimidation?

These personal factors are used to determine the subjective impact of the threat, as what intimidates one person might not affect another.

Is it considered a vice of consent if a person signs a contract because they were threatened with a legitimate lawsuit?

No, a threat to enforce a just or legal claim through competent authority does not vitiate consent.

Does it matter if the person who used force to get a signature was not a party to the contract?

No, under Article 1336, violence or intimidation annuls the obligation even if it was employed by a third person who took no part in the contract.

What is the defining element of undue influence in the perfection of a contract?

Undue influence occurs when a person takes improper advantage of their power over the will of another, effectively depriving that person of their reasonable freedom of choice.

Does the law consider the specific relationship between parties when determining if undue influence exists?

Yes, the law specifically directs the consideration of confidential, family, spiritual, and other close relations that may give one party power over the other.

Can a person's personal state, such as their health or education, be used to prove undue influence?

Yes, the fact that a person was suffering from mental weakness or was ignorant is a key circumstance considered by the law in these cases.

Is taking advantage of someone's desperate need for money considered a vice of consent?

Yes, "financial distress" is explicitly listed as a circumstance that can lead to a finding of undue influence if it was used to deprive someone of their free choice.

How does undue influence differ from intimidation?

While intimidation relies on the fear of an imminent grave evil, undue influence relies on a moral or psychological dependency that overpowers a person's independent judgment.

What constitutes "causal fraud" (dolo causante) under Article 1338?

Fraud occurs when one party uses insidious words or machinations to induce the other to agree to a contract they otherwise would not have signed.

Can silence or the failure to speak be legally classified as fraud?

Yes, failure to disclose facts constitutes fraud when there is a specific legal duty to reveal them, particularly when parties share confidential relations.

Are "sales pitches" or common trade exaggerations considered fraudulent in the eyes of the law?

No, usual exaggerations in trade are not fraudulent if the other party had a reasonable opportunity to verify the facts themselves.

When does a person’s opinion transition from a "mere expression" into a fraudulent misrepresentation?

An opinion signifies fraud only if it is made by an expert and the other party relied on that person's special knowledge.

How does the law treat a lie told by a third person who is not a party to the contract?

Misrepresentation by a third person generally does not vitiate consent unless it creates a substantial mistake that is mutual to both contracting parties.

Is a person liable for fraud if they unintentionally provide incorrect information while acting in good faith?

No, misrepresentation made in good faith is not fraudulent, though it may be treated as a simple "error" or "mistake" that could still affect the contract.

What are the two essential requirements for fraud to render a contract voidable?

The fraud must be serious (not incidental) and it must not have been employed by both parties simultaneously.

What is the difference between absolute and relative simulation of a contract?

Absolute simulation occurs when the parties have no intention to be bound by any agreement, while relative simulation occurs when parties hide their true agreement behind a false one.

What is the legal status of a contract that is found to be absolutely simulated?

An absolutely simulated or fictitious contract is considered void from the beginning and has no legal effect.

Is a relatively simulated contract automatically void?

No, a relative simulation generally binds the parties to their real agreement, provided it is not illegal or harmful to third persons.

Under what conditions is the "true" agreement in a relative simulation enforceable?

The real agreement is binding if it does not prejudice third persons and is not contrary to law, morals, good customs, public order, or public policy.

Why does the law treat absolute simulation as a void act?

It is void because the essential element of consent is entirely missing; the parties are merely putting on a "show" with no intent to create legal ties.

What are the general requirements for a "thing" to be a valid object of a contract?

A thing is a valid object if it is not outside the commerce of men and is not an impossible thing or service.

Can a person sell something they do not own yet, such as a future harvest of rice?

Yes, under Article 1347, "future things" may be the object of a contract, provided they have the potential to exist.

Is it legally permissible to enter into a contract regarding a "future inheritance" from a living relative?

Generally no, as Article 1347 prohibits contracts upon future inheritance except in cases specifically authorized by law.

What kind of rights can be the subject of a contract?

All rights which are not "intransmissible" (non-transferable), such as the right to collect a debt, can be the object of a contract.

What happens to a contract if the service promised is physically or legally impossible to perform?

According to Article 1348, impossible things or services cannot be the object of contracts, rendering such an agreement void.

Does the law require the exact quantity of the object to be known at the moment the contract is signed?

No, provided the object is determinate as to its kind and the quantity can be determined later without needing a new agreement between the parties.

What makes an object "determinate" under Article 1349?

An object is determinate if it is particularly designated or physically segregated from others of the same class.

How does the law define the "cause" in an onerous contract, such as a sale?

In onerous contracts, the cause is the promise of a thing or service by the other party; essentially, each party’s obligation is the cause for the other.

What is the cause in a remuneratory contract?

The cause is the specific service or benefit that is being remunerated or rewarded.

What moves a person to enter into a contract of pure beneficence (gratuitous contract)?

In contracts of pure beneficence, the cause is the mere liberality or generosity of the benefactor.

Is the personal "motive" of a party the same as the legal "cause" of the contract?

No, Article 1351 distinguishes motives (personal reasons) from the cause (the direct and proximate reason for the obligation).

What is the legal status of a contract that has an unlawful cause?

Contracts with an unlawful cause—meaning they are contrary to law, morals, or public policy—produce no legal effect whatsoever and are considered void.

What happens if a contract states a false cause, such as a "sale" that was actually a "gift"?

The contract is void unless it can be proven that the agreement was founded upon another cause that is true and lawful.

Does a contract become invalid if the written document fails to mention what the cause is?

No, under Article 1354, the law presumes that a cause exists and is lawful even if it is not stated, unless the debtor proves otherwise.

Can a contract be invalidated simply because the price was too low or the value was inadequate?

Generally, "lesion" or inadequacy of cause does not invalidate a contract unless there was also fraud, mistake, or undue influence involved.