What are the elements of a contract?

Classifications of contracts according to subject

matter
1. Essential Elements
2. Natural Elements 1. contract involving things
3. Accidental Elements 2. contract involving rights
3. contract involving service
Classifications of contracts according to
perfection or formation Classifications of contracts according to
obligations imposed or regarded by law
1. Consensual
2. Real 1. Ordinary
3. Formal or Solemn 2. Institutional

Classifications of contracts according to cause Classifications of contracts according to

or equivalence of prestations evidence required for its proof

1. Onerous 1. requiring merely oral or parol evidence

2. Gratuitous 2. requiring written proof
3. Remunerative
Classifications of contracts according to
Classifications of contracts according to number of persons actually and physically
importance or dependence of one upon entering into contract
another
1. Ordinary
1. Principal 2. Auto-contracts
2. Accessory
Classifications of contracts according to
3. Preparatory
number of persons who participated in
Classifications of contracts according to name drafting of contract
or designation
1. Ordinary
1. Nominate 2. Contract of Adhesion
2. Innominate
Classifications of contracts according to nature
Classifications of contracts according to parties of contract
obliged
1. Personal
1. Unilateral 2. Impersonal
2. Bilateral
Stages of a Contract
Classifications of contracts according to risk of
1. Preparation or Generacion or
fulfillment
Conception
1. Commutative 2. Perfection or Birth
2. Aleatory 3. Consummation or Death or Termination

Classifications of contracts according to time of Basic Principles or Characteristics of a Contract

performance or fulfillment
1. Relativity
1. Executed 2. Obligatory Force and compliance in
2. Executory good faith
 3. Mutuality Cases when the contract is binding only to
4. Autonomy parties
5. Consensuality
• Rights and obligations arising from the
Limitations of Nature of Stipulations contracts are not transmissible by
1. Nature
1. Law
2. Stipulation
2. Morals
3. Law
3. Good customs
4. Public Order Exception to Principle of Relativity (3rd person
5. Public policy may be affected)
How are innominate contracts regulated? 1. Stipulations Pour Autrui
2. When a 3rd person induces a party to
1. Stipulation of the parties
violate contract 3 Third persons who
2. General provisions of the Civil Code on
come into possession of the object of
Obligations and Contracts
the contract creating real right 4
3. Rules governing the most analogous
Contracts entered into to defraud
nominate contracts
creditors 5 Third persons are adversely
4. Customs of the place
affected by a contract where they did
Kinds of Innominate contracts not participate

1. Do ut des Requisites of Stipulations pour Autrui

2. Do ut facias
3. Facio ut des
4. Facio ut facias
Mutuality states that contract cannot have any
stipulation authorizing one of the parties to:
1. determine whether or not the contract
shall be valid
2. determine whether or not the
suspensive condition shall be fulfilled
Consequences of mutality
1. A party cannot revoke or renounce a
contract without the consent of the
other, nor can it be set aside on the
ground of bad bargain
2. The conditional obligation is void if the
condition is suspensive potestative
1. The stipulation must be a part and not
the whole of a contract
2. The contracting parties must have
clearly and deliberately conferred the
favor upon a 3rd person, not a mere
incidental benefit or interest
3. The 3rd person must have
communicated his acceptance to the
obligor before its revocation
4. The favorable stipulation should not be
conditioned or compensated by any
kind of obligation whatever
5. Neither of the contracting parties bears
the legal representative or
authorization of the third person
Requisites when a 3rd person is affected by
inducing a party to violate the contract

Contracts take effect only between the… 1. Existence of a valid contract

2. Knowledge of contract by 3rd person
1. Parties 3. Interference by a 3rd person without
2. their assigns legal justification or excuse
3. Heirs
Consequences or effects of perfection
1. Parties are bound to the fulfillment of
what has been expressly stipulated and
compliance thereof must be in good
faith
2. Parties are bound also to all the
consequences which according to their
nature, may be in keeping with good
faith, usage and law.
Samples of Real Contracts
1. Deposit
2. Pledge
3. Commodatum
Requisites of a Real Contract
1. Consent
2. Object or subject matter
3. Cause or consideration
4. Delivery
Requisites for a Person to contract in the name
of another
1. He must be duly authorized
2. He must have, by law, a right to
represent him
3. The contract must be subsequently
ratified
II. Essential Requisites of Contracts
Essential Requisites of Contracts
• Consensual:
1. Consent
2. Object or subject matter
3. Cause or consideration
• Real Contract:
1. Delivery Solemn Contract 4
Compliance w/ the formalities
required by law
Effect of non-consent
1. If there is no consent, there's no
contract. Agreement is non-existent or
void.
2. If there is vice of consent, contract is
not void. It's merely voidable.
Requisites of Consent
1. Legal capacity of the contracting parties
2. Manifestation of the conformity of the
contracting parties
3. The parties' conformity to the object,
cause, terms and conditions of the
contract must be intelligent,
spontaneous and free from all vices of
consent
4. The said conformity must be real and
not simulated or fictitious
Requisites for the Meeting of the Minds
1. An offer that must be certain
2. An acceptance that must be absolute
and unqualified
Forms of acceptance
1. Express
2. Implied
3. presumed (by law) as when there is
failure to repudiate hereditary rights
within the period fixed by law
Things that may be fixed by the offerer
1. time
2. place
3. manner of acceptance
9 Instances when the offer becomes ineffective
1. Death
2. Civil Interdiction
3. Insanity
4. Insolvency
5. Others
A. When the offeree expressly or
impliedly rejects the offer
 B. When the offer is accepted with a
qualification or condition
C. When before the acceptance is
communicated, the subject matter
has become illegal or impossible
D. When the period of time given to
the offeree within which he must
signify his acceptance has already
lapsed
E. When the offer was revoked in due
time (before offeror learned
acceptance)
Persons incapacitated to give consent
1. Unemancipated minors
2. Insane or demented persons
3. Deaf-mutes who do not know how to
read and write
2 classes of voidable contract
1. Those where 1 party is uncapacitated to
give consent
2. Those where the consent of one party
has been vitiated
A minor can be emancipated by
1. attainment of the age majority (18)
2. marriage
3. concession recorded in civil register by
the father or mother
Exceptions when minors can give consent
1. Contracts where the minor is estopped
to raise minority as a defense through
his own misrepresentation
2. Contracts of necessaries
3. Contracts by guardians or legal
representatives
4. Voluntary fulfillment of a natural
obligation provided that a minor is
between 18-21 y/o
5. Contracts of life, health or accident
insurance taken on life of minor
6. Married minors can validly alienate or
encumber personal property without
parental consent , but in case of real
property or borrowing money, they
need parental consent; otherwise, it's
voidable.
What is the effect of misrepresentatrion of age
of minor?
Misrepresentation shall bind them in the sense
that they are estopped subsequently from
impugning the validity of the contract on the
ground of minority. It is necessary that the
misrepresentation must be ACTIVE, not merely
constructive.
Contracts entered into by reason of incapacity
are entered into by:
1. Insane or demented persons, unless
acted during lucid interval
2. Those in state of drunkeness
3. Those entered into dujring a hypnotic
spell
Incompetents under the Rules of Court
1. Those under Civil interdiction
Hospitalized lepers Prodigals Deaf-
mutes
2. Those of unsound mind even though
they have lucid intervals
3. Those who cannot take care of
themselves & manage their property
without outside aid.
Vices of consent
1. Violence
2. Intimidation
3. Mistake
4. Fraud
5. Undue influence
Characteristics of consent
1. It is intelligent
2. It is free and voluntary
 3. It is conscious and spontaneous
Defects of Intelligence
1. Mistake
2. Fraud
Defects of Will
1. Violence
2. Intimidation
3. Undue influence
Requisites for mistake to vitiate consent
• The error must be substantial regarding
the
1. object of the contract,
2. the conditions which principally
moved or induced one of the
parties and
3. identity or qualifications but only if
such was the principal cause of the
contract
• The error must be excusable, not
caused by negligence 3 The error must
be a mistake of fact and not of law
Mistakes of fact that does not vitiate consent
1. Error as regards the incidents of a thing
or accidental qualities not taken as
principal consideration of contract
2. Mistake as to quantity or amount only
gives rise to correction, unless it’s the
essence of the contract
3. Error as regards the motives unless it's
the cause of the contract
4. Error as regards the identity or
qualifications of a party, except if it's
the cause of the contract
5. Error which could have been avoided by
the party alleging it, or which refers to a
fact known to him or which should have
known
Requisites for mutual error on legal effect to
vitiate consent
1. There must be a mutual error
2. The error must refer to the legal effect
of the agreement
3. The real purpose of the parties is
frustrated.
Requisites for Violence to vitiate consent
1. Employment of a serios and irresistible
force
2. It must have been the reason why the
contract was entered into
Requisites for Intimidation to vitiate consent
1 Reasonable and well-grounded fear 2 The evil
must be imminent and grave 3 The evil must be
upon his person or propery, or upon the person
or property of his spouse, decendants or
ascendants. 4 It is the reason why he enters into
the contract 5 The threat must be of an unjust
act, an actionable wrong.
Circumstances to be considered for undue
influence to vitiate consent
1. the confidential, family, spiritual and
other relations between the parties, or
2. the fact that the person alleged to have
been unduly influenced was suffering
from mental weakness, or
3. the person alleged to have been unduly
influenced was ignorant or;
4. the person alleged to have been unduly
influenced was in financial distress.
Requisites for undue influence to vitiate
consent
1. Improper advantage
2. Power over the will of another
3. Deprivation of the latter's will of
reasonable freedom of choice.
kinds of Fraud
1. Dolo Causante / causal fraud
2. Dolo Incidente / incidental fraud
Requisites of Dolo Causante A. if the contract prejudices a third
person
1. Fraud must be material and serious,
B. if the purpose is contrary to law,
that is, it induced consent.
morals, good customs, public policy
2. Fraud must have been employed by
and public order
only one of the parties bec if both
committed fraud, the contract would Rules on Complex Offers
remain valid.
1. If offers are interrelated, contract is
3. There must be a deliberate intent to
perfected if ALL the offers are accepted
deceive or to induce. A
2. If offers are not interrelated, single
misrepresentation in good faith is not
acceptance of each offer results in
fraud.
perfected contract unless the offeror
4. the other party must have relied on the
has made it clear that one is dependent
untrue statement and must himself not
upon the other and acceptance of both
be guilty of negligence in asserting the
is necessary.
truth.
Requisites of a valid object of a contract
Requisites of Opinion to amount to fraud
1. It must be within the commerce of man
1. Opinion was made by an expert
2. It must be licit or not contrary to law,
2. Other party has relied on the expert's
morals, good customs, public policy and
formal knowledge
public order
3. Opinion turned out false or erroneous
3. It must be possible
Fraud or Misrepresentation of 3rd person does 4. It must be determinate as to its kind
not make a contract voidable unless in these 5. It must be transmissible
cases
Things which cannot be the object of the
1. it created a substantial mistake contract
2. the mistake is mutual. Here, contract
1. Things which are outside the commerce
may be annulled on ground of mistake.
of man
Requisites for Simulation 2. Intransmissible rights
3. Future inheritance, except in cases
1. An outward declaration of will different
expressly authorized by law
from the will of the parties
4. Services which are contrary to law,
2. The false appearance must have been
morals, good customs, public policy and
intended by mutual agreement
public order 5 Impossible things or
3. The purpose is to deceive 3rd persons
service
Kinds of Simulated Contracts and effects 5. Objects which are not possible of
determination as to their kind
1. Absolutely simulated (simulados)
fictitious contracts - void Exceptions when future inheritance can be the
2. Relatively simulated (disimulados) object of contract
disguised contracts - binds the parties
1. In cases of marriage settlements
to their real or true agreement except --
2. In case of partitions of property inter
vivos by the deceased
Kinds of impossibility
1. Physical
2. Legal For services,
A. Absolute or Objectively Impossible
(act cannot be done)
B. Relative or Subjectively Impossible
(arises from special circumstances)
Motive distinguished from Cause
1. The motive of a person may vary
although he enters into the same kind
of contract, the cause is always the
same
2. The motive may be unknown to the
other; the cause is always known
3. Presence of motive cannot cure
absence of cause. Cause is essential.
4. Cause is the immediate or direct
reason; motive is the remote or indirect
reason
5. illegal cause makes a contract void, an
illegal motive does not necessarily
render the transaction void (though if
the motive in selling is to defraud a
creditor,the creditor may rescind)
Requisites of Cause
1. It must be present at the time the
contract was entered into
2. It must be true
3. It must be lawful or licit
Effects if the cause is illegal
1. If one party is innocent, he cannot be
compelled to perform his obligation and
he may recover what he has already
given
2. If both parties are guilty, in general,
neither can sue the other, the law
leaving them as they are. Certain
exemptions exists.
Exceptions to general rule in lesion
1. Together with lesion, there's fraud,
mistake or undue influence
2. Cases expressly provided by law:
A. Entered into by guardians whenever
the wards they represent suffer
lesion by more than 1/4 of the
value of the thing which is the
object
B. Agreed in representation of
absentees if the latter suffer lesion
by more than 1/4 of the value of
the thing which is the object
C. Partition among co-heirs, when
anyone of them received things
with a value less by at least 1/4
than the share to which he is
entitled
Effect of absence of cause
• the contract confers no right and
produces no legal effect
Effect of failure of cause
• does not render the contract void
Effect of Illegality of cause
• The contract is null and void
Effect of falsity of cause
• the contract is void, unless the parties
show that there is another cause which
is true and lawful
Effect of lesion
• does not invalidate the contract, unless
(a) there is fraud, mistake or undue
influence; or (b) when the parties
intended a donation or some other
contract
III. Form of Contracts
When Form is important
1. For validity
 2. For enforceability (under Statute of
Frauds)
3. For convenience
Samples of Formal Contracts
1. Donations of Real Property req. public
instrument
2. Donations of Personal Property req.
written contract or document if
donation exceeds Php5,000
3. Stipulations to pay interests on loans
must be in writing
4. Transfer of large cattle req. transfer of
cert. of registration
5. Sale of Land thru an agent. The
authority of the agent must be in
writing.
6. Contracts of Antichresis (principal loan
and interest must be in writing,
otherwise, contract of antichresis is
void)
Exception to general rule of Form of Contract
1. When the law requires that a contract
be in some form in order that it may be
valid (solemn)
2. When the law requires that a contract
be in some form in order that it may be
enforceable (SoF)
Contracts that must appear in a public
document (for convenience. Oral agreement is
still valid and binding between parties, not not
against 3rd persons until registered. Formal
req. benefit third parties)
1. Acts and contracts which have for their
object the creation, transmission,
modification or extinguishment of real
rights over immovable property; sales
of real property or of an interest therein
are governed by Articles 1403 (SoF), No.
2, and 1405;
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.
All other contracts where the amount involved
exceeds five hundred pesos must appear in
writing, even a private one. But sales of goods,
chattels or things in action are governed by
Articles 1403, No. 2 and 1405.
IV. Reformation of Instruments
Requisites of Reformation of Instruments
1. meeting of the minds to the contract
2. true intention is not expressed in the
instrument by reason of mistake,
accident, relative simulation, fraud, or
inequitable conduct
3. clear and convincing proof of mistake,
accident, relative simulation, fraud, or
inequitable conduct
4. It must be brought within the proper
prescriptive period
Instances when there can be no reformation:
1. Simple unconditional donations inter vivos; 2.
Wills; 3. When the agreement is void 4. When
one of the parties has brought an action to
enforce the instrument, no subsequent
reformation can be asked. (on basis of estoppel,
waiver or ratification)
Necessary to justify reformation of written
instruments on ground of mistake
1. Mistake should be of fact
2. Proved by clear and convincing
evidence
3. Common to both parties
 4. Must cause failure to express true
intentions
V. Interpretation of Contracts
Rules on Interpretation of Contracts
1. If the terms of a contract are clear and
leave no doubt upon the intention of
the contracting parties, the literal
meaning of its stipulations shall control.
If the words appear to be contrary to
the evident intention of the parties, the
latter shall prevail over the former.
2. In order to judge the intention of the
contracting parties, their
contemporaneous and subsequent acts
shall be principally considered.
3. However general the terms of a
contract may be, they shall NOT be
understood to comprehend things that
are distinct and cases that are different
from those upon which the parties
intended to agree.
4. If some stipulation of any contract
should admit of several meanings, it
shall be understood as bearing that
import which is most adequate to
render it effectual.
5. The various stipulations of a contract
shall be interpreted together,
attributing to the doubtful ones that
sense which may result from all of them
taken jointly.
6. Words which may have different
significations shall be understood in
that which is most in keeping with the
nature and object of the contract. (if
can't be determined, use primary and
general acceptation)
7. The usage or custom of the place shall
be borne in mind in the interpretation
of the ambiguities of a contract, and
shall fill the omission of stipulations
which are ordinarily established.
8. The interpretation of obscure words or
stipulations in a contract shall not favor
the party who caused the obscurity.
9. When it is absolutely impossible to
settle doubts by the rules established in
the preceding articles, and the doubts
refer to incidental circumstances of a
gratuitous contract, the least
transmission of rights and interests shall
prevail. If the contract is onerous, the
doubt shall be settled in favor of the
greatest reciprocity of interests. If the
doubts are cast upon the principal
object of the contract in such a way that
it cannot be known what may have
been the intention or will of the parties,
the contract shall be null and void.
10. The principles of interpretation stated
in Rule 130 of the Rules of Court shall
likewise be observed in the construction
of contracts.
VI. REFER TO NOTES p129-152
Defective Contracts
1. Void
2. Voidable
3. Rescissible
4. Unenforceable
Compare Void, Voidable, Rescissible and
Unenforceable Contract
1. Cause of defect
2. Legal effect
3. Presciption
4. Cure by prescription
5. Ratification
6. Who can assail
7. Method of assailment
What contracts are rescissible
1. those entered into by guardians where
the ward suffers lesion of more than ¼
 of the value of the things which are
objects thereof;
2. those agreed upon in representation of
absentees, if the latter suffer lesion by
more than ¼ of the value of the things
which are subject thereof;
3. those undertaken in fraud of creditors
when the latter cannot in any manner
claim what are due them;
4. those which refer to things under
litigation if they have been entered into
by the defendant without the
Rescission in Article 1191
knowledge and approval of the litigants
and the court;
5. all other contracts especially declared
by law to be subject to rescission; and
6. payments made in a state of
insolvency on account of obligations not
yet enforceable
Requisites of Rescission
1. the contract must be rescissible
2. the party asking for rescission must
have no other legal meansb to obtain
reparation for the damages suffered by
him
3. the person demanding rescission must
Rescission Proper in Article 1381
be able to return whatever he may be
obliged to restore if rescission is
granted
4. the things w/c are the object ofthe
contract must not have passed legally
to the possession of a 3rd person acting
in good faith
5. the action for rescission must be
brought w/in the prescriptive period of
4 years
Badges of Fraud
1. Consideration of the conveyance is
inadequate or fictitious;
2. Transfer was made by a debtor after a
suit has been begun and while it is
What are voidable contracts
pending against him;
3. Sale upon credit by an insolvent debtor;
4. Evidence of indebtedness or complete
insolvency
5. Transfer of all his property by a debtor
when he is financially embarrassed or
insolvent;
6. Transfer made between father & son,
where there is present any of the above
circumstances
7. Failure of the vendee to take exclusive
possession of all the property
1. It is a principal action retaliatory in
character.
2. The only ground is non-performance of
one’s obligation/s or what is incumbent
upon him.
3. It applies only to reciprocal obligation
4. Only a party to the contract may
demand fulfillment or seek the
rescission of the contract.
5. Court may fix a period or grant
extension of time for the fulfillment of
the obligation.
6. Its purpose is to cancel the contract.
1. It is a subsidiary remedy.
2. There are 5 grounds to rescind. Non-
performance by the other party is not
important.
3. It applies to both unilateral and
reciprocal obligations.
4. Even a 3rd person who is prejudiced by
the contract may demand the rescission
of the contract.
5. Court cannot grant extension of time
for fulfillment of the obligation.
6. Its purpose is to seek reparation for the
damage or injury caused, thus allowing
partial rescission of the contract.
 1. Those where one of the parties is
incapable of giving consent to a
contract
2. Those where the consent is vitiated by
mistake, violence, intimidation, undue
influence or fraud
Causes of extinction of action to annul
1. Prescription
2. Ratification
3. By loss of the thing which is the object
of the contract through fraud or fault of
the person who is entitled to annul the
contract.
Requisites to avoid Presciption
• the action must be commenced within 4
years from: a. the time the incapacity
ends; b. the time the violence,
intimidation or undue influence ends;
or c. the time the mistake or fraud is
discovered.
Requisites of Ratification to extinct action for
annulment
1. there must be knowledge of the reason
which renders the contract voidable
2. such reason must have ceased and
3. the injured party must have executed
an act which expressly or impliedly
conveys an intention to waive his right
What contracts are unenforceable
1. those entered into in the name of
another by one without or acting in
excess of authority;
2. those where both parties are incapable
of giving consent; and
3. those which do not comply with the
Statute of Frauds
Agreements within the scope of the Statute of
Frauds
1. Agreements not to be performed within
one year from the making thereof;
2. Special promise to answer for the debt,
default or miscarriage of another;
NOTE: This does not refer to the original
or independent promise of the debtor
to his own creditor. It refers rather to a
collateral promise.
3. Agreement in consideration of marriage
other than a mutual promise to marry;
4. Agreement for the sale of goods, etc. at
a price not less than P500.00;
5. Contracts of lease for a period longer
than one year;
6. Agreements for the sale of real property
or interest therein; and
7. Representation as to the credit of a
third person.
Ratification of contracts in violation of the
Statute of Frauds
1. Failure to object to the presentation of
oral evidence to prove such contracts
2. Acceptance of benefits under these
contracts
What contracts are void
1. Those whose cause, object or purpose
is contrary to law, morals good
customs, public order or public policy;
2. Those whose object is outside the
commerce of men;
3. Those which contemplate an impossible
service;
4. Those where the intention of the
parties relative to the principal object of
the contract cannot be ascertained; and
5. Those expressly prohibited or declared
void by law.
What contracts are inexistent
1. Those which are absolutely simulated or
fictitious; and
 2. Those whose cause or object did not
exist at the time of the transaction.
Exceptions to Principle of Pari Delicto
1. Payment of usurious interest
2. Payment of money or delivery of
property for an illegal purpose, where
the party who paid or delivered
repudiates the contract before the
purpose has been accomplished, or
before any damage has been caused to
a 3rd person.
3. Payment of money or delivery of
property made by an incapacitated
person
4. Agreement or contract which is not
illegal per se & the prohibition is
designed for the protection of the
plaintiff
5. Payment of any amount in excess of the
maximum price of any article or
commodity fixed by law or regulation by
competent authority.
6. Contract whereby a laborer undertakes
to work longer than the maximum # of
hours fixed by law.
7. Contract whereby a laborer accepts a
wage lower than the minimum wage
fixed by law.
8. One who lost in gambling because of
fraudulent schemes practiced on him is
allowed to recover his losses [(Art. 315,
3 (b), RPC] even if gambling is a
prohibited one.
Rules when only one of the parties is at fault:
1. Executed Contracts:
A. Guilty party is barred from
recovering what he has given to the
other party by reason of the
contract.
B. Innocent party may demand for the
return for the return of what he has
given.
2. Executory Contracts - Neither of the
contracting parties can demand for the
fulfillment of any obligation from the
contract nor may be compelled to
comply with such obligation
VII. Natural Obligations
Examples of natural obligations enumerated
under the Civil Code:
1. Performance after the civil obligation
has prescribed;
2. Reimbursement of a third person for a
debt that has prescribed;
3. Restitution by minor after annulment of
contract;
4. Delivery by minor of money or fungible
thing in fulfillment of obligation;
5. Performance after action to enforce
civil obligation has failed;
6. Payment by heir of debt exceeding
value of property inherited; and
7. Payment of legacy after will have been
declared void.
VIII. Estoppel
Kinds of Estoppel
1. Estoppel in Pais (by conduct)
A. Estoppel by silence
B. Estoppel by acceptance of benefits
2. Technical Estoppel (impedimento
técnico)
A. Estoppel by deed
B. Estoppel by record
C. Estoppel by judgment
D. Estoppel by laches
Elements of Laches
1. Conduct on part of the defendant, or of
one under whom he claims, giving rise
to the situation of which complaint is
made and for which the complaint
seeks a remedy
 2. Delay in asserting the complainant’s
rights, the complainant having
knowledge or notice, of the defendant’s
conduct and having been afforded the
opportunity to institute a suit
3. Lack of knowledge or notice on the part
of the defendant that the complainant
would assert the right on which he
bases his suit
4. Injury to the defendant in the event
relief is accorded to the complainant, or
the suit in not held to be barred

Differentiate Laches and Prescription

• LACHES
1. concerned with effect of delay
2. question of inequity of permitting
the claim to be enforced
3. not statutory
4. applies in equity
5. not based on a fixed time
• PRESCRIPTION
1. concerned with fact of delay
2. question or matter of time
3. statutory
4. applies at law
5. based on a fixed