REQUISITES OF

CONTRACT

GROUP III
ANGLO, JORIE
ANDRANEDA, ANGELINE
ABUYUAN, JAMES RENNELL
CALARA, TRISTAN JAY
Requisites of contracts

The requisites of a valid contract are the elements or

details it must possess in order to be enforceable under the law.
Contracts are a normal part of the everyday business world, and
they're agreements that are legally enforceable. All agreements
are considered to be contracts as long as they are made with the
requisites in place, such as freely consenting parties who are
competent to form a legal contract, for legal purposes
 CONSENT

OBJECT OF CAUSE OF
CONTRACT CONTRACT
 CONSENT

Consent is the conformity of wills of the contracting parties

upon the object and cause as well as to the other terms and
conditions of the contract. It is manifested through meeting of the
offer which must be certain and the acceptance which must be
absolute. If the acceptance by the offeree is qualified, it becomes a
counter-offer hence, there is no consent unless the offerer accepts
the counter offer unqualifiedly
Acceptance made through letters, etc.
Generally, acceptance should be made right after the offer has
been or immediately thereafter. Acceptance through letters or
telegrams does not bind the offeror.

Rule on offer and acceptance.

The general rule is that the person making the offer has the
inherent right to fix the time, place and manner of acceptance.
Once fixed, the acceptance must be made strictly in such a
manner to give birth to the consent
Offer made through agent.

An offer made through an agent is accepted from the time

acceptance is communicated to him by the offeree.

Published advertisement not an offer.

Business advertisement of things which are for sale in
newspaper ads or media are not definite offers by mere
invitations to make offer, and the same is true as regards
advertisements calling for bidders to make proposals based on
given specifications.
Persons who cannot give consent

Consents can only be given by persons who have the

capacity to act.

Vices of consent.
The law enumerates five causes by which the consent may be
vitiated or rendered defective. These are mistakes, violence,
intimidation, undue influence and fraud. If the consent of a
party to the contract is given or secured through the use of
any of these vices the contract becomes voidable.
Mistake rendering contract defective.
In order that mistake may invalidate consent, it should refer to
the substance of the thing which is the object of the contract,
or to those conditions which have principally moved one or
both parties to enter into the contract.

Mistake of fact and mistake of account distinguished.

Mistake of account unlike mistake of fact will not avoid the

contract.
Legal protection to weak party.
The law has its protective concern to the no-read no-write or
disadvantaged party to the contract. Article 1332 of the Code states that
when one parties is unable to read, or if the contract is written in a
language not understood by him, and mistake is alleged, the person
enforcing the contract must show that the terms should have been fully
explained.

Violence and intimidation explained.

Using of violence and intimidation in order to secure a

consent .
 Undue influence.
There is undue influence when a person takes improper
advantage of his power over the will of another, depriving the
latter of a reasonable freedom of choice.

Fraud in contracts.

There is fraud when through insidious words or

machinations of one of the contracting parties, the other is
induced to enter into a contract which, without them, he
would not have agreed to.
Duty to disclose material facts.
Failure of either party to disclose facts when there is a
duty to reveal them as when the parties are bound by
the confidential relations, constitute fraud (Article 1339).

Simulated Contracts

A contract is simulated when it is fictitious or pretended

in order to defraud the creditor or mislead the general
public.
 OBJECT OF CONTRACTS

Object of contract is the thing, right or service which is the subject matter of
the obligation arising from the contract. An object which must be certain is the
second element of a contract. All things which are within the commerce of man
including future things having potential existence, rights which are not in
transmissible and services which are not contrary to law, morals, good customs,
public order, and public policy and not impossible of compliance may be the object
of contract. No contract may, however, be entered into upon future inheritance
except in cases expressly authorized by law.
Outside the commerce of man.
It has been held that a municipal council cannot sell or
lease public property, such as plazas, streets, common
lands, rivers, bridges, etc. because they are outside the
commerce of man; and if it has been done so the contract
is null and void.

Things having potential existence.

Things having potential existence are those which are
sure to come barring only unforeseen events although
not yet possessed.
Intransmissible rights and services
Rights which are intransmissible cannot be the object of
a contract because they are either too personal to the
parties or are not permitted by law to be the object of
contract.

Future inheritance.
A contract involving a future inheritance is void as this
will likely entice an instituted heir or legatee to end up
the life of the benefactor.
Object must be determinate, exceptions.

The object of the contract must be determinate as to

leave no doubt as to which is intended from the kind
where it belongs, or must have definite limits.
 CAUSE OF CONTRACT

A cause is the “why” of the contract which must be in

existence at the time of the contract is the last element of a valid
contract. Cause or consideration is the immediate, direct and
proximate reason why a party enters into the contract and
without which the contract becomes nullity. The cause may
either be onerous, remuneratory or gratuitous.
Onerous Contracts
The cause or consideration is understood to be, for each
contracting party, the prestation or promise of a thing or
service by another.

Remunatory Contracts

A service or benefit which remunerated or paid

Gratuitous Contracts
or one of pure beneficence, the cause or consideration is
pure liberality on the part of the benefactor.
Motives in entering the contract.

The particular motives of the parties in entering into a

contract are different from the cause thereof.

Contracts without cause or with illegal cause.

Contracts without a cause or with an illegal cause,

produce no effect or whatsoever.
Statement of a false cause in contract.

The statement of a false cause in contracts shall render

them void, if it should not be proved that it is founded
upon another cause which is true and lawful.

Presumption of consideration.

Although the cause is not stated in the contract, the

same is presume to exist and is lawful, unless the
debtor proves the contrary.
Lesion or inadequacy of cause.

Except in cases specified by law, lesion or inadequacy of

cause shall not invalidate a contract, unless there has
been fraud or undue influence.
FORMAL CONTRACTS
A contract that requires a special form or method of formation/
creation in order to be enforceable like having a SEAL, an
ACKNOWLEDGEMENT IN COURT, NEGOTIABLE INSTRUMENT like a
check, note, draft or certificate and a LETTER OF CREDIT that has an
agreement to pay that is contingent upon the receipt of documents.

INFORMAL CONTRACTS

A contract that does not require a specified form or method of

formation in order to be valid.