A.

1327 valid

Cannot 1. unemancipated minors Contract, - agreed to: 1. state of drunkenness

give voidable 2. during hypnotic spell
Consent to 2. insane or demented, deaf-mutes [who do not
a know how to write] Lucid - temporary period of sanity
contract interval
[U IDD] Voidable contract – one of the parties is incapable of - contract, valid – entered into by an insane or
giving consent demented during lucid
- valid and binding until it is annulled by a proper interval
action in court Provided: Shown that there is FULL RETURN OF
- can be ratified THE MIND TO
SANITY – to enable him to understand the
Unemancip - persons who have not yet reached the age of contract he is entering
ated majority [18] into.
minors - subject to parental authority Drunkenne - impair the capacity to give intelligent consent
* emancipated through: ss
1. attainment of the age of majority & hypnotic - equivalent to temporary insanity
2. marriage spell,
3. concession recorded in the Civil Register, of Effect. - not required – procured by the circumvention
the father or mother [avoidance] of the other
who exercises parental authority party

Insane or - must exist “at the time of contracting” A. 1329 Incapacity declared in 1327 -
demented 1. subject to modifications determined by law
2. without prejudice to the special
Deaf-mutes - deaf and dumb disqualifications established in the
- contract is valid – 1. [if] knows how to write law
Reason: capable of giving intelligent consent
2. knows how to read but cannot General rule: Contract entered into by
write unemancipated minors, insane or
Demented and deaf-mutes are VOIDABLE.
Disqualifica - can be victims of fraud
tion, [N L G M V] Exceptions: Modification by the law to give valid
reason Reason: not capable of understanding or consent:
knowing the nature or 1. when necessaries such as food are sold and
Import of their actions delivered to a minor or
other person without capacity to act, he must pay
Can enter - only through a parent or guardian a reasonable price
contract therefore
2. Minor [18 yrs. Old or above] may contract for life,
A. 1328 health and accident
Insurance
Contract, - entered during a lucid interval Provided: 1. Insurance is taken on his life
 2. Beneficiary appointed is the minor’s A. 1330
estate or minor’s Voidable - consent is given through:
Father, mother, husband, wife, child, contract 1. mistake
brother or sister [M U V I F] 2. violence
3. contract, valid – entered through a guardian or 3. intimidation
legal representative 4. undue influence
4. contract, valid – minor misrepresented his age 5. fraud
and convincingly led
The other party to believe in his legal capacity Consent, 1. intelligent – capacity to act
5. contract, valid – minor [bet. 18 and 21 yrs.] valid
voluntarily pays a sum of [F I C] 2. free and voluntary – no vitiation of consent by
Money or delivers a fungible thing in fulfillment reason of violence or
of his obligation and Intimidation
The oblige has spent or consumed it in good faith 3. conscious or spontaneous – no vitiation of
consent by reason of
Special dis- [under rules of court] Mistake, undue influence or fraud
Qualificatio 1. suffering the accessory penalty civil interdiction
ns Vices of - making the contract voidable [aside from 1.
[incompete 2. hospitalized lepers consent incapacity
nts] [vitiate 2.
[P U S H C 3. prodigals [spendthrifts] consent simulation of contract]
D] Or render it 1. mistake or error
4. deaf and dumb [unable to read and write] Defective] 2. violence or force
5. unsound mind [although they may have lucid 3. intimidation or threat/duress
intervals] 4. undue influence
6. cannot take care of themselves and manage their 5. fraud or deceit
properties,
[A D W O] a. age Causes vitiating consent vs. Causes of
b. disease incapacity
c. weak mind 1. temporary - more or
d. other similar causes less permanent
*becoming an easy prey for deceit and 2. [refers: contract itself - person
exploitation entering into contract

*above: valid but voidable A. 1331 Mistake invalidates consent when it refers to:
Mistakes of 1. substance of the thing [object of the contract]
fact
[H I M O] a. insolvents until discharged [insolvency law 2. conditions which have principally moved one or
a1956] both parties to enter
b. married women in cases specified by law [a39] Into contract
c. husband & wife with respect to sale of property to
each other [a1490] 3. Mistake as to identity or qualifications of one of
d. other persons esp. disqualified by law [a1491, the parties, vitiates
1789] Consent when:
 Identity or qualifications – principal cause of the
contract 3. motives
Unless: motives constitute a condition or cause of
Simple mistake of account – give rise to its the contract
correction
4. identity or qualifications
Mistake / - false notion of a thing/fact material to the contract Reason: contracts are entered into more in
error consideration of the things
Or services which form their subject matter rather
than of persons
Mistake, 1. may be: [I R O] Except: principal cause of the contract
nature a. obligations to do
a. fact b. requiring personal qualifications of the debtor
b. law c. involving trust and confidence
1331 contemplates MISTAKE OF FACT – arise from [D A G C C] i. contracts of partnership
ignorance or lack of ii. agency
Knowledge iii. commodatum
iv. guaranty
2. substantial mistake of fact – the party would not v. deposit
have given his
Consent had he known of the mistake Examples: As to thing/object:
AB
*not every mistake will vitiate consent and make a Buying a breeding cow
contract voidable But B is selling a barren cow

#1. Includes mistake regarding NATURE OF THE As to conditions:

Substance CONTRACT – CP believe AB
of Selling land: 20K cash
The thing That the other is selling, when in truth and in fact, B buying the land thinking it is payable in
[object both are buying. installments
Of the
contract] As to identity/qualifications:
AB
Mistake of 1. incidents of a thing or accidental qualities – not Sold car
fact, taken as principal A thought that B was a doctor [in fact lawyer]
Doesn’t Consideration of the contract MISTAKE IS NOT MATERIAL AS TO AVOID THE
vitiate CONTRACT
consent Unless: error is caused by fraud of other party
[Q I I M] Ex. A. accessibility of a residential house to means AB
of transportation Donated car
B. maximum speed of car A thought – B was his half-brother
MISTAKE IS MATERIAL – Reason: Identity was a
2. quantity or amount – only gives rise to correction principal reason/consideration for the donation.
Unless: it goes to the essence of the contract
Effect of Simple mistake of calculation or account – does not With one’s motive, the law is not concerned
Simple avoid a contract
Mistake of Reason: it does not affect essential requisites [if] S’ motive: to defraud C [creditor] who has a right
account Defect – merely in the computation of the account to go after the land
or amount which can .for its satisfaction of an indebtedness of S
Be corrected C may ask the court for the rescission or
cancellation of the sale
Example:
SB A. 1352 Contracts without cause / unlawful cause – produce
Sold parcel of land: 567 square meters; P415/sq. m. no effect
[in] Document of sale: purchase price – P285,305 [in Cause, unlawful – contrary to law, morals, good
fact 235,305] customs, public order,
.public policy
Mistake – not make the contract voidable
- only give rise to correction by putting the true A. 1353 Statement of a false cause [in contracts] – render
amount them void,
A. 1351 -particular motives [in entering in a contract] – .if it should not be proved that they were
different from the cause founded upon another
.cause which is true and lawful
Motive - purely personal or private reason in entering into a
contract Cause,requ 1. exist at the time the contract is entered into
- different from the cause of contract isites
[L E T] 2. lawful
Causes vs. - causes vs. - 3. true or real
motive
Motive 1. immediate or - Absence of - total lack of any valid consideration for the
remote or indirect reason contract
.direct reason Cause, - confer no right
2. always known to the other - may effect
be unknown - no legal effect
3. essential element - not
4. illegality affects the validity - does Absolutely simulated/fictitious – inexistent / void
not render it void
Failure of - does not render a contract void
Motive – may be the “cause” if it is founded upon a cause,
“fraudulent purpose” effect
To prejudice a third person *Adequacy of cause – not a ground for relief
Failure to pay the stipulated price - does not
convert the contract into
Example SB .one without cause
-sells land: 100k
- S’ cause: 100k Contract of sale, void – without cause [where the
- S’ motive: to use the money in business / buy purchase price, which
another land .appears as paid, has in fact never been paid by the
 buyer to the seller
SB
Illegality of - there is cause but unlawful or illegal - sells parcel of land, 1M price of the land stated
Cause, - unlawful cause – null and void - if the statement is false – no contract of sale
effect
Example: promise of marriage based upon carnal [f] S can prove that it’s founded upon another
connection cause, as when B has
Person accused of the crime obliges .exchanged his car for the land – “contract of barter
himself to give a sum of or exchange” - valid
Money in consideration of the promise - statement of the price is simulated – reason:
on the part of the willfully made
Oblige to refrain from testifying - there is in fact real cause but it is not the one
against him stated in the contract

A. 1354 [although] cause – not stated in the contract

Falsity of -contract states a valid consideration but such - presumed – it exists and lawful [unless debtor
cause statement is not true proves otherwise]
effect
Example MP
False cause - erroneous or simulated - issued a promissory note, “30 days after date, I
- erroneous – renders a contract void promise to pay P or
- void – reason: the same does not actually exist .order the amount of 1k. signed M”
-although no mention n of cause/consideration – law
-simulated – does not always produce its effect presumes that M
.reason: hidden but true cause is sufficient to .must have received a cause for the debt and is
support the contract lawful.
If M claims otherwise – burden of proof
*if the parties can show that there is another cause
which is true and A. 1355 Lesion or inadequacy of cause – does not invalidate
Lawful, the parties shall be bound their true a contract
agreement [F U M] .unless there is: fraud, mistake or undue influence

Examples DC Lesion - any damage caused by the fact that the price is
- promised to give 1k as payment for past services unjust or inadequate
allegedly rendered - injury suffered in consequence of inequality of
.by C, which in truth and in fact have not been situation [one party who
rendered / for a carabao .does not receive the full equivalent for what he
Which unknown to D is already dead gives in a commutative
.contract, like sale]
-D’s cause, erroneous: service renumerated or
promise of C to sell the Exceptions Lesion will invalidate a contract:
.carabao – reason: based on facts believed to be -
existing, but really 1. fraud, undue influence, mistake
.inexistent 2. cases specified by law
Chapter 3 Contract – obligatory in whatever form provided all
essential requisites
Form of .are present for validity
Contracts [law requires] contract – be in some form in order to
be valid or enfor-
.ceable – requirement: absolute / indispensable

Form of - manner in which a contract is executed or

contract manifested

Contract - may be: oral or in writing / partly oral or partly

writing
- in writing – public / private instrument