GARAYBLAS SAMPLEX Finals
elements of a contract including delivery for
I.
(a) Elements of a contract:
a.) Essential Elements
1.) Consent – the meeting of the
offer and acceptance of both
parties;
2.) Object – the subject matter of the
obligation; that which is being
given or done
3.) Cause – the very purpose of the
parties entering into the contract.
b.) Natural Elements – These need not
be stipulated upon by the parties and
are existing based from natural law.
c.) Accidental Elements – Elements
which may be agreed upon by both
parties and stipulated in the contract.
(b) Executed contracts are those, which upon
making of the contracts, consider the
obligation based upon it as fulfilled or
performed while those which are yet to be
performed are called executory contracts; an
example of the latter is to build a house for
X six months from this date.
Nominate contracts are, in accordance with
law, given specific names or titles such as
sale, barter, lease, etc; while innominate
contracts are those which the law has not
provided specific names or titles; these are;
I give that you may give
I give that you may do
I do that you may do
I do that you may give.
Contracts which are created by mere consent
of both parties are considered consensual;
while those which require the essential
its completion are called real.
Unilateral contracts have only one party to
have the obligation fulfilled while in a
bilateral contract, both parties are mutually
obliged with each other.
(c) as a general rule, the performance of a
contract cannot be left to the discretion of a
third person except when both parties are
notified and consent to such agreement.
II.
Generally, contracts may be perfected or
done orally or in writing unless the law
specifically provides for a specific form for
the same to be valid and enforceable.
An example is donation of personal
property; this need not be in a specific form
to make such donation valid except when the
value exceeds 5,000 where the law provides
that the contract be, at least, in writing.
b. In order that one of the parties may be
able to demand the execution of the contract,
the form required would depend upon the
nature of the contract. For instance donation
of real property must be written in a public
document; as well as those under Art. 1403
par 2 of the NCC requiring some contracts
to be in writing to be enforceable while the
sale of a pen may be done through verbal
agreement.
c. The donation is not valid. The card sent
by Nel to Kyle expressing his gratitude is
not tantamount to the required acceptance by
law which must be contained in a public
document for it to be valid.
III. Flamengo films is liable for damages. It
is deemed to have induced Lucy Ann to
breach its contract with Vivo Productions,
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which is not allowed under the NCC. Even if
Flamengo Films is not a party to the
contract, it acted in bad faith for luring the
movie actress to leave Vivo Productions and
cancel its contract with the latter. Thus, Vivo
is entitled to damages.
(b) Stipulation pour autrui is the act of
clearly and deliberately conferring upon a 3rd
person a benefit arising from the contract.
The benefit must not include the contract in
its entirety, but must be partial. Moreover,
acceptance of said benefit must be made
known to the parties before the perfection of
the contract. This is one instance wherein a
3rd person may be considered or is allowed
to intervene in the contract of two or more
parties to enforce its right.
IV. Offer may become ineffective upon the
death, civil interdiction, insanity of the
offeree before acceptance is made. If he is a
deaf-mute who does not know how to write,
offer is likewise ineffective.
(b) The guardian of A cannot nullify the sale.
A was in a state where he may validly enter
into contracts when the sale of the car was
made to B. Lucid interval is temporary
sanity and the law provides that during this
period, they may validly be parties to a
contract.
(C) A contract is unenforceable when both
parties are incapacitated to give consent,
when there is violation of the Statute or
fraud, or when the party acted beyond his
power of authority or without legal
representation.
(d) C cannot enforce the contract. As a
general rule, the contract is unenforceable
because A acted without legal representation
or authority from B. Until and unless there is
ratification by B, the contract cannot be
enforced.
( e ) Yes. There can be rescission without
restitution in some instances. One is when
one party, in a bilateral contract, can no
longer return what has been given because it
is already in the hands of a 3rd person;
another is when the thing is lost.
In both cases, the one at fault is obliged to
indemnify the other party with damages if
proper.
V. A’s contention is untenable. Payment of
loan does not fall under those enumerated
under the Statute of Frauds, thus it may be
validly enforced. The following are those
included under Art. 1403 Par. 2:
1.) Those that are to be performed not within
1 year from making of the contract;
2.) Sale of goods, things or chattels of at
least P500
3.) Those in consideration of marriage other
than mutual promise to marry;
4.) In representation of 3rd person’s credit;
5.) Lease of at least 1 year or sale of real
property;
6.) Promise to answer for debt, default or
miscarriage of another.
(b) A cannot bring an action against B. The
contract is void for being against the law.
The offer must have been withdrawn before
acceptance is made known. Moreover,
restitution applies only to rescibble contracts
and not to those declared as void.
( c ) Formal contracts are those which are
required by law to be placed in a public
document such as donation of real property
or sale of the same; while consensual
 GARAYBLAS SAMPLEX Finals

contracts are deemed perfected upon mere

consent by both contracts and are generally
done orally or in writing.
(d) the following are void contracts;
I. Contracts absolutely simulated
II. Object is outside the commerce of
man;
III. Object is against law, morals, good
customs, public order or public
policy;
IV. Object does not exist at the time of
the making of the contract.
V. Service to be done is an impossible
one.