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    Contracts - Chapter 2 (Section 3)

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    Leinard Agcaoili
    This document provides definitions and discussions related to cause and motive in contracts. It defines cause as the essential reason for entering a contract, while motive is the personal reason. Inadequacy of cause is generally not grounds for relief. For a cause to be valid, it must exist at the time of contracting, be lawful, and be real. If the stated cause is found to be false, the contract is void. In sales contracts, the object is the cause for one party and the motive for the other. The document also provides example problems and answers regarding illegal contracts, absence of cause, false receipts, and inadequacy of price.

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    Contracts - Chapter 2 (Section 3)

    Uploaded by

    Leinard Agcaoili
    145 views2 pages
    This document provides definitions and discussions related to cause and motive in contracts. It defines cause as the essential reason for entering a contract, while motive is the personal reason. Inadequacy of cause is generally not grounds for relief. For a cause to be valid, it must exist at the time of contracting, be lawful, and be real. If the stated cause is found to be false, the contract is void. In sales contracts, the object is the cause for one party and the motive for the other. The document also provides example problems and answers regarding illegal contracts, absence of cause, false receipts, and inadequacy of price.

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    This document provides definitions and discussions related to cause and motive in contracts. It defines cause as the essential reason for entering a contract, while motive is the personal reason. Inadequacy of cause is generally not grounds for relief. For a cause to be valid, it must exist at the time of contracting, be lawful, and be real. If the stated cause is found to be false, the contract is void. In sales contracts, the object is the cause for one party and the motive for the other. The document also provides example problems and answers regarding illegal contracts, absence of cause, false receipts, and inadequacy of price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    145 views2 pages

    Contracts - Chapter 2 (Section 3)

    Uploaded by

    Leinard Agcaoili
    This document provides definitions and discussions related to cause and motive in contracts. It defines cause as the essential reason for entering a contract, while motive is the personal reason. Inadequacy of cause is generally not grounds for relief. For a cause to be valid, it must exist at the time of contracting, be lawful, and be real. If the stated cause is found to be false, the contract is void. In sales contracts, the object is the cause for one party and the motive for the other. The document also provides example problems and answers regarding illegal contracts, absence of cause, false receipts, and inadequacy of price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Chapter 2 (Section 3)

    STUDY GUIDE

    I. Definitions
    Define or give the meaning of the following:
    1. Cause
    - It is the essential reason or purpose which the contracting parties have in view
    at the time of entering the contract.
    2. Motive
    - Motive is the purely personal or private reason which a party has in entering a
    contract.
    3. Inadequacy of Cause
    - Absence of cause should be distinguished from inadequacy of cause which, as
    a rule, is not a ground for relief.
    II. Discussions
    1. Give the requisites of cause in a contract
    - 1) It must exist at the time the contract is entered into 2) It must be lawful 3) It
    must be true or real.
    2. State the effect if the cause of a contract is found to be false.
    - According to Article 1353, the statement of a false cause in contract shall
    render them void, if it should not be proved that they were founded upon
    another cause which is true and lawful.
    3. What is the object and what is the cause in a contract of sale?
    - In bilateral or reciprocal contract like purchase and sale, the cause for one is
    subject matter or object for the other, and vice versa. Hence, the distinction is
    only a matter of viewpoint.
    III. Problems
    Explain or state briefly the rule or reason for your answer.
    1. S sold his fishing boat to B who intends to use the boat for smuggling. Is the
    contract of sale illegal?
    - In article 1351 if the motive of the parties entering into a contract are different
    the cause thereof, if it is in illegal the motive does not render the contract
    void.
    2. S sold to B a specific parcel of land for P500,000. B failed to pay. Has C the right
    to have the sale declared void by the court on the ground of absence of cause for
    non-payment of the price?
    - No, just as it says in Article 1352, a contract without cause, or with unlawful
    cause, produce no effect whatever.
    3. X gave P10,000 to Y who signed a receipt stating: “This is to acknowledged
    payment by X in the amount of P12,000.” X later complains that he received
    nothing from Y for the P10,000. Is Y bound to return the P10,000?
    - Yes, If X will prove that he received nothing from Y. (Article 1354)
    4. S sold to B his car worth P250,000 for only P200,000. There is no question that
    the purchase price is grossly inadequate. Has S the right to have the sale annulled?
    - No, Inadequacy shall not invalidate a contract unless there has been fraud,
    mistake, or undue influence.

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