FORM OF CONTRACTS AND REFORMATION

1. VALIDITY

2. ENFORCEABILTY

3. CONVENIENCE

FORM OF CONTRACTS

Public Documents

Donation of Immovables must be in a

writing if the value of the property  exceeds Php 5,000,

Donation of Movables must be ____ otherwise the donation is voided

Writing

 Agency to sell land or any interest therein must be in _____

1.  Acts and contracts which have for their object the creation, transmission,  modification or extinguishment of real rights

2. The cession, repudiation or renunciation of hereditary rights or of those of the  conjugal partnership of gains; 

3. The power to administer property, or any other power which has for its object  an act appearing or which should appear in a public document, or should prejudice  a third person; 

4.  The cession of actions or rights proceeding from an act appearing in a public  document.

things that must be present in the public document

Reformation of Instruments

when the  true intention is not expressed in the instrument  purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for this so that the true intention may be expressed. 

annulment of  the contract.

If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds  of the parties, the proper remedy is not reformation of the instrument but

1. Mutual mistake fails to disclose the real agreement

2. Unilateral mistake or the other party acted fraudulently

3. Unilateral mistake and the other party is guilty of concealment.

4. Person drafting the instrument or clerk or typist through ignorance, lack of skill, negligence or bad faith, does not show the true intention

   1. parties agree on mortgage, pledge of real or personal property but instrument  says that it is sold absolutely or involves a right to repurchase

Contracts that may be reformed

1. Simple Donation 

2. Wills 

3. Real Agreement is void

No reformation is allowed when

1. The party who is not at fault (Art. 1367, Civil Code) 

2. The party who is not asked to enforce the instrument (Art. 1368, Civil  Code) 

3. If there is a mutual mistake, reformation may be had by either party or successor in interest (Art. 1368, Civil Code)

Who may ask for reformation