1. Personal Rights vs.

Real Rights:
Personal Rights: These are rights that a person has against another specific
individual. They are based on personal relationships or agreements and are
typically enforceable only against the person who has the obligation. For
example, if you have a right to receive payment under a contract, that right is a
personal right because it's enforceable against the party who owes you money.
Real Rights: These rights are directly related to a particular piece of property and
are enforceable against everyone. They are tied to ownership or control of the
property itself. For example, property ownership rights and rights to use or
transfer property are real rights because they pertain to the property and not just
to a specific individual.

2. Contractual Capacity:
Contractual capacity is a legal requirement for forming a valid contract. It refers
to the ability of a party to enter into a contract. This means that individuals must
have the mental and legal capacity to understand and agree to the terms of the
contract. Generally, this includes:
Age: Typically, a person must be of legal age (usually 18) to enter into a contract.
Minors may have limited capacity, and contracts with them may be voidable.
Mental Competence: The individual must have the mental ability to understand
the nature and consequences of the contract. Contracts made by individuals who
are mentally incapacitated (due to illness, intoxication, etc.) may be void or
voidable.
Authority: For entities such as corporations, the person entering into the contract
must have the authority to bind the entity.

3. Legal Requirements for a Valid Contract:

Offer and Acceptance: There must be a clear and definite offer made by one
party and an acceptance of that offer by another. Both must agree on the terms.
Mutual Consent: Both parties must consent to the terms of the contract freely
and without duress, coercion, or misrepresentation.
Consideration: There must be something of value exchanged between the
parties. This could be money, goods, services, or a promise to do or refrain from
doing something.
Capacity: As mentioned earlier, both parties must have the legal capacity to
enter into a contract.
Legality: The contract's subject matter must be legal. A contract that involves
illegal activities is void and unenforceable.
Possibility of Performance: The terms of the contract must be capable of being
performed. If the obligations are impossible to fulfill, the contract may be void.
These elements ensure that a contract is legally enforceable and that all parties
involved understand and agree to their rights and obligations.

Here's a differentiation between minors, majors, and juristic persons concerning

their contractual capacity, with a focus on the categories of minors:

1. Minors
Children Under 7 Years:
- Contractual Capacity: Children under 7 years generally lack any contractual
capacity. Contracts with them are typically void or voidable because they are
presumed incapable of understanding the nature and consequences of
contractual agreements. Such contracts are not enforceable against the child.

Minors Aged 7 to 18 Years:

- Contractual Capacity: Minors in this age range have limited contractual
capacity. Contracts made by minors are generally voidable at their discretion.
This means that minors can choose to either affirm or void the contract. This
protection is intended to shield minors from the potential consequences of
contracts they might not fully understand or that might be exploitative.

Minors Aged 7 to 18 Years in an Assisted Contract (Common Law):

- Contractual Capacity: An assisted contract, which requires the approval of a
guardian or parent, may be enforceable if it is for necessities (such as food,
clothing, or shelter) or is beneficial to the minor. Assisted contracts generally
include those that are explicitly approved or sanctioned by a minor’s legal
guardian. In such cases, the minor may be bound by the contract if it has been
made with the guardian’s consent.

Minors in an Unassisted Contract (Common Law):

- Contractual Capacity: Unassisted contracts are those entered into by minors
without the involvement of a guardian or parent. These contracts are usually
voidable at the minor’s discretion. The minor can choose to affirm or void the
contract, providing protection against agreements they may not fully
comprehend. However, if a minor ratifies the contract upon reaching the age of
majority, it becomes binding.

2. Majors
- Contractual Capacity: Majors (adults) have full contractual capacity. They can
enter into binding contracts and are legally obligated to perform their contractual
duties. They are presumed to understand and be capable of managing their
contractual responsibilities.

3. Juristic Persons
Contractual Capacity: Juristic persons (legal entities such as corporations,
partnerships, and organizations) also possess full contractual capacity. They can
enter into, enforce, and be bound by contracts. Their contractual capacity is
determined by their legal status, which is governed by the laws and regulations
applicable to entities, such as corporate governance rules and statutes that
outline their powers and limitations.

In summary:
- Children under 7 years have no contractual capacity.
- Minors aged 7 to 18 years have limited capacity, with contracts generally being
voidable.
- Minors aged 7 to 18 years in assisted contracts may have enforceable
agreements if approved by a guardian and are for necessities or are beneficial.
- Minors in unassisted contracts have contracts that are voidable, allowing them
to decide whether to affirm or void the contract.

1. Legal Position of a Person Contracting with a Minor in an Unassisted Contract

(Common Law)

Under common law, minors (typically individuals under the age of 18) generally
lack the full legal capacity to contract. Contracts with minors can be classified
into the following categories:

- Voidable Contracts: Contracts entered into by minors without assistance (i.e.,

without the consent of a parent or legal guardian) are typically voidable at the
instance of the minor. This means that the minor can choose to either ratify
(approve) or repudiate (cancel) the contract upon reaching the age of majority.
The other party to the contract, however, is bound and cannot unilaterally cancel
the contract.

- Valid Contracts: Certain contracts are valid even if entered into by a minor.
These include contracts for necessities (like food, clothing, and shelter) and
contracts for the minor's benefit (such as contracts for education or
apprenticeship).
- Void Contracts: Contracts that are prejudicial to the minor are void ab initio
(from the beginning), meaning they have no legal effect whatsoever. These
contracts do not bind the minor and can be repudiated without consequences.

2. Contractual Capacity of Persons Married In Community of Property vs. Out of

Community of Property

- Married In Community of Property: When spouses are married in community of

property, they share a joint estate. In this case, both spouses have equal powers
of administration over the joint estate, but there are specific transactions that
require mutual consent, such as the alienation of immovable property, entering
into suretyships, or binding the joint estate as a whole.

- Married Out of Community of Property: When spouses are married out of

community of property (typically with an antenuptial contract), each spouse
retains separate estates. This means that each spouse has independent
contractual capacity and does not require the other spouse's consent to enter
into contracts, unless they specifically agreed otherwise in their antenuptial
contract.

3. Consent Required for Persons Married In Community of Property

In a marriage in community of property, a spouse must obtain the consent of the

other spouse for certain transactions that affect the joint estate. The nature of
the consent required depends on the type of transaction:

- Written Consent: Required for transactions like the sale of immovable property
or entering into a credit agreement.

- Informed Consent: For smaller transactions or those that do not significantly

affect the joint estate, informal consent may be sufficient.

- Ratification: In some cases, a spouse may ratify (approve after the fact) a
contract entered into without proper consent, thereby making it binding on the
joint estate.

4. Contractual Capacity in Specific Situations

- Drunken Persons: If a person is so intoxicated that they are unable to
understand the nature and consequences of the contract they are entering into,
the contract may be voidable. The intoxicated person can later choose to
repudiate the contract once they are sober, provided that the other party was
aware of the intoxication and took advantage of it.

- Effect on the Contract: The contract is not automatically void but voidable at
the intoxicated person’s option. If the intoxicated person repudiates the contract,
it is as if the contract never existed, and they may be required to restore any
benefits received.

- Insolvent Persons: An insolvent person, who is declared insolvent by a court,

has limited contractual capacity. Any contracts they enter into after the
declaration of insolvency must be approved by the trustee of the insolvent
estate.

- Effect on the Contract: Contracts entered into by an insolvent person without

the trustee’s consent may be voidable or unenforceable, as the trustee has the
authority to reject such contracts if they are not in the best interests of the
creditors.

Understanding these distinctions and requirements is crucial for navigating legal

situations involving contractual capacity.
Marriage Out of Community of Property Without Accrual
Separate Estates: Each spouse maintains separate ownership of their assets and
liabilities. There is no sharing of property or debt during the marriage or upon its
dissolution.
No Sharing of Assets: Neither spouse has a claim to the other’s assets, whether
acquired before or during the marriage.
No Accrual: There is no system of accrual; meaning, the value of assets
accumulated during the marriage by each spouse remains solely theirs.
Autonomy in Financial Matters: Each spouse has full autonomy to manage their
own financial affairs, including buying, selling, or donating property without the
other spouse's consent.
Divorce: Upon divorce, each spouse leaves the marriage with what they
individually own, with no sharing or redistribution of assets unless otherwise
agreed.
Marriage Out of Community of Property With Accrual
Separate Estates During Marriage: Similar to the above, each spouse owns and
controls their own assets and liabilities during the marriage.
Accrual System: While each spouse maintains separate ownership of assets, the
growth or increase in value of their estates during the marriage (the accrual) is
shared between them upon dissolution of the marriage, usually in the case of
divorce or death.
Sharing on Dissolution: Upon divorce or the death of one spouse, the accrual
system calculates the difference between the initial and the end value of each
spouse's estate. The spouse with the smaller accrual has a claim against the
other for half of the difference between the accruals.
Exclusions: Certain assets, such as inheritances, gifts, and specific assets agreed
upon in the antenuptial contract, can be excluded from the accrual calculation.
Financial Autonomy: Each spouse still has autonomy over their property during
the marriage, but the accrual system ensures fairness in the sharing of the
wealth accumulated during the marriage upon its dissolution.
Summary:

Without Accrual: Total separation of property with no sharing upon divorce or

death.
With Accrual: Separate property during marriage, but sharing of wealth
accumulated during marriage upon divorce or death.