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- 1 of the parties is compelled by a reasonable & well- 6. Determinate (kind) or determinable ( w/o the need of
grounded fear of an imminent & grave evil upon his new contract/agreement)
person/property to give his consent. 7. NO contract be entered for future inheritance UNLESS
law states
3 RULES ON INTIMIDATION
1. Age, sex, & condition of person must used to 4 REQUISITES OF CAUSE
determine the degree of intimidation. 1. It is just & equitable.
2. Intimidation ANNULS obligation although it is DONE by 2. It exists.
3rd person not part of contract. 3. It is lawful.
3. A threat to enforce one’s claim (claim must be just & 4. It is true.
legal), DOES NOT vitiate consent.
LESION
VIOLENCE INTIMIDATION - inadequacy of cause (eg. insufficient price for thing
External Internal sold)
Physical contact/coercion NO physical coercion; ONLY
MENTAL/MORAL coercion RULES ON LESION
- Lesion DOES NOT invalidate contract, except there is:
5. UNDUE INFLUENCE a. Fraud
- a person takes improper advantage of his power over b. Mistake
other’s will, depriving the other to his reasonable c. Undue influence
freedom of choice.
2 FORM OF CONTRACTS
3 RULES ON UNDUE INFLUENCE 1. Contracts in writing
1. There is a person who takes improper advantage of his 2. Contracts in a public instrument
power over other’s will, depriving the other to
his reasonable freedom of choice. 1. Contracts w/c must be IN WRITING to be valid:
2. Undue influence ANNULS obligation although it is DONE a. Donation of personal property exceeds P5000.
by 3rd person not part of contract. b. Agent’s authority in sale of land/any interest.
3. To constitute undue influence, ff circumstances must c. Contract of antichresis.
be considered: (1) confidential, family, spiritual, & other d Stipulation to pay interest on loans.
relations of parties; or (2) the aggrieved party is suffering e. Stipulation to reduce common carrier’s
from mental weakness; or (3) ignorant; or (4) in financial extraordinary diligence & to limit its liability.
distress.
2. Contracts w/c must be IN A PUBLIC INSTRUMENT to
SIMULATION OF CONTRACT be valid:
- process of INTENTIONALLY deceiving others by a. Donation of real property (both the donation &
producing a contract not really exist (absolute accep-tance).
simulation), or w/c is different from true b. Sale of real property.
agreement (relative simulation). c. Partnership where real property/rights is
contributed; or when capital contribution exceeds P3000.
2 KINDS OF SIMULATED CONTRACT
1. ABSOLUTE SIMULATION (the parties DO NOT intend to REFORMATION OF INSTRUMENTS
be bound at all) - REMEDY in equity in w/c a written instrument is
- completely fictitious/make-believe; VOID made/construed to the REAL intention of parties when
2. RELATIVE SIMULATION (parties conceal their true/real there is an error/mistake.
agreement)
- parties are bound to real/true agreement, EXCEPT: (5) CASES REFORMATION OF INSTRUMENT IS AVAILABLE
a. contract prejudice 3rd person 1. Mutual mistake of parties.
b. purpose is contrary to law, morals, good customs, 2. One party was mistaken & the other acted fraud.
public order, public policy 3. One party was mistaken & the other knew/believed
that the instrument did not state their REAL agreement.
7 REQUISITES OF OBJECT OF CONTRACT 4. Ignorance, lack of skill, negligence, or bad faith of
1. Specific & certain person drafting the instrument DOES NOT state the TRUE
2. Services not contrary to law, morals, good customs, INTENTION of parties
public order, public policy 5. Two parties agree on mortgage/pledge of
3. Services/things must NOT be legally/physically personal/real property BUT the instrument states the
impossible property is sold ABSOLUTELY, or w/ the right to
4. Services/things are w/in commerce of man including repurchase.
future things
5. Rights are NOT TRANSMISSIBLE. (3) NO REFORMATION OF INSTRUMENT WHEN:
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1. Simple donation inter vivos where NO CONDITION is
imposed.
2. Will.
3. Real agreement is VOID.
5 RESCISSIBLE CONTRACTS
1. Those entered by guardians & suffered LESION by more
than ¼ of value of the value that is the OBJECT.
2. Those agreed upon in representation of absentees, if
the absentees suffered LESION.
3. Those undertaken in FRAUD of creditors when the
creditors cannot further claim.
4. If entered into contract w/o knowledge/approval of
litigants under litigation.
5. Contracts subjected to rescission declared by law.
3 VOIDABLE CONTRACTS
1. One of the parties INCAPABLE of giving consent to a
contract.
2. Those where consent vitiates by vices of consent.
(MFVIU)
3. Those agreed in the state of drunkenness/hypnotic
spell.
3 UNENFORCEABLE CONTRACTS
1. Those entered in name of other person, or who acted
BEYOND his powers.
2. Those who do not comply w/ the Statute of Frauds.
3. Both parties are incapable of giving consent to a
contract.
7 VOID/INEXISTENT CONTRACTS
1. Those w/c are ABSOLUTELY simulated/fictitious.
2. Those w/c contemplate an impossible service.
3. Those whose OBJECT is outside the commerce of man.
4. Those whose CAUSE/OBJECT did not exist at time of
tran-saction.
5. Those whose CAUSE/OBJECT/PURPOSE is contrary to
law, morals, good customs, public order, or public policy.
6. Those where INTENTION of parties to principal object
CANNOT be ascertained.
7. Those expressly prohibited/declared VOID by law.
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