SUMMARY FOR CONTRACTS

Contracts. General Provisions. (1305- obligation may exist without a

1317) contract.
4 Kinds of Innominate Contracts
 Obviously, this article provides for
1. Do ut des (I give that you may
a legal definition of contract and
give)
study of meeting of minds or
2. Do ut facias (I give that you may
between 2 persons or parties.
do)
 Is it necessary that contract must
3. Facio ut des (I do that you may
be in writing? No? Why? As stated
give)
in this article, is the meeting of
4. Facio ut facias (I do that you may
minds, so meaning it is not
do)
necessary na nakasulat ang
kontrata, except sa mga contracts CONTRACTS
need talaga nakasulat like ng mga
 Freedom to stipulate
contracts na nirequired ng law.
 Principle of mutuality contracts
But generally, hindi naman
 Relativity of Contracts
necessary na nakasulat ang
 Principle of Consensuality of
contract dahil as stated in this Contracts
article, by definition, it is the  COC – Consent as to
the object and to the
meeting of minds between two
Cause of the contract
persons.
How contracts are perfected?
Distinguish from obligations
 General Rule: Principle of
 Contracts is one of the sources of Consensuality of contracts
obligations  Exceptions:
 Obligations is the legal tie or
Real Contracts – heto yung
relation itself that exists after a
kailangan ng delivery
contract has been entered into.
 Hence, there can be no contract if Formal Contracts – heto yung
there is no obligations. But an nagrerequired ng specific form or
specific documents

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Unenforceable Contracts SECTION 1 – CONSENT

 This article stated that an  Consent is define as the meeting

authorized contracts entered into of the minds between the parties
without the authority of the with respect to the subject matter
principal. and the cause of the contract.
 Requisites for a person to contract  Requisites of Consent
in the name of another 1. There must be two or more
1. He must be authorized parties;
(expressly or impliedly). 2. The parties must be CAPABLE
2. He must have by law, a right to or CAPACITATED;
represent him. 3. There must be NO VITIATION
3. The contract must be of consent;
subsequently RATIFIED 4. There must be NO CONFLICT
(express or implied). between what was expressly
4. He must act within his power. declared and what was really
intended;
5. Intent must be declared
ESSENTIAL REQUISITES OF PROPERLY.
CONTRACTS. (Consent). Article 1318-  CERTAIN – dapat must not be
1346. obviously vague, it must not be

ART. 1318 misleading or it must not just a

mere joke, hindi lang din dapat
 COC – Consent, Object, Cause
nag eeexpress ng desire or hope.
 Classes of elements of contracts
THE OFFRE MUST BE CERTAIN
1. Common
AND SERIOUSLY INTENDED.
2. Special
The offer must be definite so that
a. Real Contracts
upon acceptance nung kabilang
b. Solemn or Formal
parties an agreement can be
Contracts
reached on the whole contract.
 ABSOLUTE – so meaning hindi
qualified it must be unqualified.

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 Acceptance is absolute, inaccept Parang partial payment and
mo talaga yun ng walang earnest money like down
condition. At hindi counter-offer. payment.
 Counter offer as a matter of fact  NOTE: Option contract in itself is
EXTINGUISHES the original offer. a contract, so dahil contract ito
So it may or may not be accepted meaning kailangan din ng
by the original offer. perfection. So kailangan din ng
meeting of minds for that option.
ART. 1323
ART. 1326
 This article discuss kung kailan ba
ang offer ay magiging  Advertisement for bidders.
INEFFECTIVE – mawawalan ng  This article tell us that yung mga
bisa. Mawawalan ang bisa from advertisement for bidders daw
the time of upon the death, civil generally are they are NOT
interdiction, insanity, or insolvency DEFINITE OFFERS. This simply
of either party before the invitations to make proposals.
acceptance is conveyed.  So general rule, yung mga
 CIVIL INTERDICTION – is an advertisement talaga are mere
accessory penalty in criminal law. invitations unless the contrary
appears na makikita mo na
ART. 1324
definite offers talaga yun but
 OPTION CONTRACT – heto yung genral rule advertisement are just
usapan na binigyan ni offeror si a mere invitations.
offeree ng certain period to accept
ART. 1327
the offer.
 OPTION MONEY – it is the money  This article talks about the
paid or promised before the capacity of a person to enter into
option. This is not will not form part a contact to give a consent
of price  “The following cannot give
 ERNEST MONEY – that money consent to a contract:
will constitute or will form part with 1. Unemancipated minors;
the whole purchase price later on.

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 2. Insane or demented persons; 2. Consent of one party are
(unless they acted during vitiated.
LUCID INTERVALS)
ART. 1329
 Kasi yung mga baliw
daw hindi naman all the  This article talks about

time na baliw sila, may modification/incapacity

times na nasa tamang  Incapacity as declared in 1327,

pag-iisip sila. So if yung modify or modifications
contract they enter that determined by law. Kasi may mga
contract during their instances naman na although
lucid interval so they hetong mga tao na ‘to are
have the capacity incapacitated they can still enter
actually to give consent into a contract or a valid contract.
at that time so the  Sinibi rin naman ng batas that a
contract is VALID. contract is valid if into a guardian
3. Deaf-mutes who do not know or a legal representative pwede
how to write.” naman.
 These minors, insane and the  Then if yung minor although
deaf-mutes who does not know incapacitated to give a consent
how to write are very prone to however minor actually can enter
being a victim of fraud. into a contract for life, health and
 Hetong mga contracts who are accident insurance
entered into by person who are ART. 1335
incapacitated person to give
 Another grounds for Vitiated
consent are VOIDABLE –
consent is VIOLENCE or
meaning valid until annulled.
INTIMIDATION
Merond dalawang uri ng voidable
 This provision talks about violence
contracts.
and intimidation
1. Contracts where one parties
are incapacitated to give  Violence – is more on physical

consent (1327) coercion

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  Intimidation – is more on moral or party ay hindi sana
mental coercion eentered (ART. 1338)
 Requisites for VIOLENCE to b. Dolo incidente /
vitiate consent: Incidental Fraud – dito
1. Employment of serious or kahit na meron or walang
irresistible force; fraud the parties would
2. It must have been the reason have agreed just the same.
why the contract was entered 2. In the performance of the
into. Contract – that kind of fraud
presupposes the existence of
ART. 1337
an already perfected contract
 Another grounds for Vitiated  REQUISITES FOR DOLO
consent is UNDUE INFLUENCE
CAUSANTE
 REQUISITES
1. The fraud must be material
1. Person takes improper
and serious
advantage of his power over
2. The fraud must be employed
the will of another
by only one party
2. Depriving the latter of a
3. Deliberate intent to deceived
reasonable freedom of choice
4. The other party must have rely
ART. 1338
on that untrue statement, and
 Another grounds for Vitiated must not be negligent.
consent is FRAUD ART. 1343
 Kinds of Fraud
 “Misrepresentation made in good
1. In the Celebration of the
faith is not fraudulent but may
Contract
constitute error.”
a. Dolo causante / Causal
Fraud – it is fraud na kung ART. 1344
saan vitiated consent
 Dolo causante / Causal Fraud –
talaga na kung walang
should be serious, should not
fraud na yan, yung isang
have been employed by both

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 contracting parties. They should  Relative simulation the parties will
not be in pari delicto be bound to their real agreement
 Dolo incidente / Incidental EXCEPT:
Fraud – only obliges the person  If it will prejudice a third
employing to pay damages person
 Not intended for any
ART. 1344
purpose contrary to law,
 Dolo causante / Causal Fraud – morals, good customs,
should be serious, should not public order or public policy
have been employed by both
SECTION 2 – Object of Contracts
contracting parties. They should
(1347-1349)
not be in pari delicto
 Dolo incidente / Incidental Fraud –  Object of contracts requisites:
only obliges the person employing 1. Things or service must be
to pay damages within the commerce of men;
2. It must be transmissible
ART. 1345
3. It must not be contrary to law,
 Simulation of a contract – heto morals, good customs, public
yung mutual agreement by order or public policy
parties pero hindi siya nag e  Future inheritance
express ng totoong intention ng Gen. rule: It cannot be an object of
parties. contract
 Absolute – if it takes place when Exception: When expressly
the parties do not intend to be allowed by law
bound at all  Inheritance ceases to be future
 Relative – when the parties upon the death of the decendent
conceal their true agreement.
ART. 1348
ART. 1346
 “Impossible things or services
 An absolutely simulated or cannot be the object of contracts.”
fictitious contract is VOID.

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  Object of the contracts must not Where in the cause merely
be impossible liberality of the benefactor or
 Impossible – either physically giver.
impossible or legally impossible  Kapag walang cause and contract
 Physically impossible ay VOID and produce no effect
can be Absolute or Relative whatever.
 Requisites of Cause
ART. 1349
1. It must be present
 The object must be determinate or 2. It must be true
at least be determinable without 3. It must be lawful
the need of new agreement.
Rescissible Contracts. Article 1380-
1389. Defective Contracts

SECTION 3 – Cause of Contracts  Rescissible Contracts – actually

(1350-1355) valid, essential requisites of a

 Cause – the reason why iaassume contract exist but for some reason,

ang obligation na yan by economic injury or damage to

 Subject matter for one party will be one of the parties or to third

the cause or consideration for the person, the contract is pwedeng

other party ma rescind.

 This article provides for  Voidable contracts – valid until

classification of contract annulment unless there has been

according to cause. ratification

 For onerous contracts both have  Unenforceable Contracts – from

obligations they are reciprocally the word itself, hindi mo pwede ma

obligated to each other. enforce unless ratified

 Remuneratory contracts are those  Void Contracts or inexistent

contracts for the past service or contracts – absolutely null and

benefit na nairender. void. Contracts which have no

 Contracts of pure beneficence – effect at all and cannot be ratified

gratuitous contracts

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  The following contracts are (2) Those agreed upon in
rescissible: representation of absentees, if the
(1) Those which are entered into latter suffer the lesion stated in the
by guardians whenever the wards preceding number;
whom they represent suffer lesion  Representation of
by more than one-fourth of the absentees.
value of the things which are the  Absentees – person who
object thereof; disappears from his or her
 Yung daw inenter into domicile and his
by the guardian tapos whereabouts being
yung ward in unknown without leaving
representation of ward, an agent to administer his
then the ward suffered property.
by lesion by more than  Pag yung absentee suffers
1/4 of the value of the lesion by more than 1/4 of
thing which is the object the value of the property
thereof. which is the object of the
 Ward – is the person contract, it gives or it
under guardianship kasi entitles that absentee the
nga he’s incapacitated, remedy of rescission.
usually mga minors but (3) Those undertaken in fraud of
hindi naman ito limited creditors when the latter cannot in
sa mga minors. any other manner collect the
 Lesion is NOT MORE claims due them;
THAN 1/4 of the value,  If ever nag-enter ka into
hence cannot be contract into the fraud your
rescinded. creditor or si creditor ay
 Lesion is MORE THAN mayroong right to rescind
¼ of the value, hence the contract.
can be rescinded. (4) Those which refer to things
under litigation if they have been

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 entered into by the defendant  Yung rescission is actually not a
without the knowledge and principal remedy so meaning
approval of the litigants or of subsidiary, meaning maaavail mo
competent judicial authority; lang siya if yung injured party has
 Things in Litigation no other legal means for seeking
 So inentered into ng redress or reparation for the
defendant tapos walang damages that he has suffered.
knowledge and approval  So is rescission was files dun sa
yung mga litigants or contracts in front of creditors.
judicial authority  RESCISSION IS NOT A
 The sale of the thing by the PRINCIPAL REMEDY.
defenadant in favor of the  The injured party has to prove that
buyer of the thing is a he has no other legal means or
rescissible contract, which aside from rescinding that
can be rescinded. contract.
 Dapat yung bagay is under  PRESUMPTION OF FRAUD –
litigation, meaning GRATUITOUS ALIENATIONS
mayroong pending case  Magkakaroon daw ng
from the moment the presumption of fraud pag
defendant receives the si debtor hindi siya
summon. nagreserve ng sufficient
(5) All other contracts specially property to pay all the
declared by law to be subject to debts contracted before
rescission. (1291a) the donation.
 Lahat ng contract na  Presumed to have entered
specified by law to be into fraud of creditors
rescissible.  It was done to defraud the
 This article provides for cases or creditors pag si donor
situations instances hindi nagreserve ng
 General Rule: Lesion does not sufficient property to pay
invalidate a contract

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 all debts contracted before Ang kasundun may bisa kung
the donation. hindi tumutugon sa mga
 The donation is presumed nabanggit. 

in fraud of his creditor.
 2nd paragraph – PRESUMPTION
OF FRAUD – ONEROUS
ALIENATIONS
 When made by person
against whom some
judgment has been
rendered in any instance
 Or some writ of attachment
 Vitiated Consent
has been issued.
 In cases of intimidation,
 The decision or attachment
violence or undue
need not refer to the
influence, from the time the
property alienated, and
defect of the consent
need not have been
ceases.
obtained by the party
 In cases of mistake or
seeking the rescission.
fraud, from the time of the
discovery of the same.
Voidable Contracts. Article 1390-1402.  And when the action refers
Defective Contracts. to contracts entered into by

 Ang kasunduan ay walang bisa minors or other

kung ang mga ito ay: incapacitated persons,

1) walang kapahintulutan ang from the time the

batas sa kanila; guardianship ceases.

2) ito ay isang pagkakamali, ART. 1392

kaguluhan, at pinilit ang isang
 “Ratification extinguishes the
partido.
action to annul a voidable
contract.”

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  Ratification – despite knowing na valid from its inception. Of course,
mayroong defect yung contract subject to prior rights nung mga
niyo you still adapt or approve third parties
yung contract. Meaning yung
ART. 1397
intention mo is to ratify or to bound
by that contract kahit alam mo na  This article provides us or gives us

pwede mo sanang ipa-annul pero answer SINO BA ANG

mas pinili mo maging binding, PWEDENG MAGFILE FOR

mag bind ka ng contract na yan. ANNULMENT. Only the injured

 Ratification could be made party.

expressly or impliedly  Yung victim pwede siya yung

principal or subsidiary, pwede siya
ART. 1394
mag file for annulment.
 “Ratification may be effected by  Cpacitated. Ang incapacitated
the guardian of the ang pwedeng magfile for
incapacitated person.” annulment, hindi pwede ang
 So ang ratification ng guardian by capacitated dahil ang kakontrata
the incapacitated person ay mo ay incapacitated.
pwede rin pala.and that is  The guilty party is walang right
expressly provided by this article. para magfile ng annulment.

ART. 1396 ART. 1400

 “Ratification cleanses the contract  Papaano if hindi mo na mareturn

from all its defects from the and it is because through your
moment it was constituted.” fault. Then ang ggawin niya
 It has retroactive effect. So irereturn niya na lang yung fruits
although ngayon mo siya niratify na nareceive niya and yung value
pero yung contract niyo is you ng bagay at the time of loss with
entered that contract way before interest from the same date pa rin.
January 1, 2020 pa, the effect of So yung value of this thing with
ratification is to make that contract

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 interest substitutes the thing itself Paano mararatify? Two ways of
na nawala. ratification under the statute of frauds.

1. By the failure to object to the

Unenforceable Contracts. Art. 1403- prestation of oral evidence to
1408. Defective Contracts. prove the contract.
 Pag yung nipresent
UNENFROCEABLE CONTRACTS –
nilang evidence is oral
refers to contracts kung saan hindi
evidence, dapat mag
pwede i-enforce in court by reason of
object ka, na kung hindi
defects until and unless they are ratified
ka nag-object it’s as if
according to the law. Mas defective ito sa
you waive your right.
voidable contracts. Ang status talaga nito
Then dahil nagkaroon
ay hindi pwedeng ma enforce, kailangan
ng waiver that is
muna ma ratify 1st para maenforce in
consider as ratification
court.
of contracts.
 Heto yung mga unauthorized 2. By acceptance of benefits under
contracts, heto ay mga the contract.
unenforceable at kailangan  The statute does not
munang i-ratify nung person nung apply partially executive
principal para magkaroon ng legal or perform contracts. It
effects. is only applicable
 Ang unauthorized executory contracts
contracts hindi lang meaning yung mga
naman kailangan na wala pang performance
wala yung authority, talaga.
pwedeng binigyan ka  So if tinanggap mo na
ng authority but you partially yung
acted beyond that performance or
power. payments or benefits
 then it’s as if there is
already ratification of

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 contracts which minor or incapacitated person
impeach the statute of then if ever nangyari ay ganun nga
frauds. dalawang parties in a contract are
incapacitated to enter into a
Here’s the right of one party to compel
contract or incapacitated to give,
to other to execute the needed
incapable of giving consent.
instrument
 Now pag yung isa sa kanila ay
 Kailangan ay valid and may isang parents or guardian na
enforceable ang contract. nagratify nung contract na iyon
 So yung public document is magiging voidable ang status,
necessary lang for convenience meaning valid until annulled.
kaya yung remedy ng party is to Tapos if yung both guardian or
compel the other party to execute parents talaga ang nagratify yung
the necessary instrument. contract will be validated from the
 Pag ang contract ay enforceable time of inception talaga because
under the statute of frauds at ratification cleanses the contract
kailangan ng public document from any or all of its defects from
para maregister siya sa registry of the time it is constituted.
deeds then pwedeng i-compel
nung one party yung on the other
party to compel the other, to
execute the needed instrument.

ART. 1407

 Heto yung contract nung both

parties are incapable of giving
consent.
 So if unenforceable ang contract
then one party na pwede naman si
guardian ang magratify nung
contract na inenter into nung

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Void Contracts. Article 1409-1422. Defective Contracts.

2.) Mga kontrata na walang

dudang kunwarian or gawa-gawa

lamang;
Ang mga sumusunod na kontrata ay
3.) Mga kontrata na may dahilan
walang bisa sa simula’t sapul:
at layunin na hindi umiiral sa
1.) Mga kontrata na ang dahilan, panahon ng transaksiyon;
layunin, at intensyon ay labag sa 4.) Mga kontrata na ang layunin ay
batas, moral, mabuting labas sa komersyo ng
pamantayan, pampublikong utos sangkatauhan;
o pampublikong patakaran;

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 5.) Mga kontrata na 1. The parties shall have no action
nagmumungkahi ng imposibleng against each other
gawain; 2. Both shall be prosecuted
6.) Mga kontrata na kung saan  Yung price nung contract and
ang intensiyon ng bawat partido swell assume effects or
tungkol sa pangunahing layunin instruments nung crime yan ay
nito ay hindi matiyak; macoconfiscate in favor of the
7.) Mga kontrata na hayagang government.
ipinagbabawal o dineklarang  When only 1 party is guilty and the
walang bisa ng batas. other one is innocent. The
 Ang mga kontrata na ito ay hindi innocent may claim what he has
maaaring ma-ratify, at ang given,
karapatan na itaguyod ang
ART.1412
depensa o pagiging ilegal nito ay
hindi matatalikdan.  The rules where the contract is

 Void Contract is actually a void pa rin illegal but it does not

special classification. There are constitute criminal offense. So

two kinds of void contracts ang mangyayari both parties are

1. Inexistent Contracts – na yung in pari delicto, both are guilty.

formalities required by law are  The guilty party cannot recover

not met. Contract has no effect what he has given by reason of
at all. the contract or hindi rin siya
2. Illegal or Illicit Contracts pwede mag ask for fulfillment of
what had been promised him. To
ART. 1411
the innocent party, pwede siyang
 It provides for a rule na yung magdemand na return of what he
contract is illegal and the acts has given without any obligation to
constitutes criminal offence, comply with his promise.
where both parties are in pari
delicto (both guilty).

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ART. 1421

 “The defense of illegality of

contracts is not available to third
person whose interests are not
directly affected.”
 Yung defense ng illegality
generally hindi talaga yan
available to third person/strangers
even if yung contract is illegal.
 The defense of illegality ay
pwedeng lang ma set up if whose
interest are directly affected.

ART. 1422

 “A contract which is the direct

result of a previous illegal
contract, is also void and
inexistent.”
 Yung mga contract na direct result
ng previously illegal contract ay
magiging void and inexistent din.

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