Consent Is The Conformity of Wills and With Respect To Contracts, It Is The Agreement of The Will of One Contracting Party

OBLIGATIONS AND CONTRACTS - SECOND PRE-FINALS
1. Define estoppel. Give three (3) examples of estoppel.

Article 1431.
Through estoppel and admission or representation is rendered conclusive upon the person making it, and cannot be
denied or disproved as against the person relying thereon.
Concept of Estoppel:
Estoppel is a bar which precludes a person from denying or asserting anything to the contrary of that which has, in
contemplation of law, been established as the truth, either by the acts of judicial or legislative officers or by his own
deed or representation, either expressed or implied.
It concludes the truth in order to prevent fraud and falsehood, and imposes silence on a party only when in
conscience and honesty he should not be allowed to speak.
2. Define natural obligations. Give three (3) examples.

Article 1423.
Obligations are civil or natural. Civil obligations give a right of action to compel their performance. Natural obligations,
not being based on positive law but on equity and natural law, do not grant a right of action to enforce their
performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or
rendered by reason thereof. Some natural obligations are set forth in the following articles.
3. Define prescription. Give 3 instances when action must be brought within 10 years from the time the cause
of action accrues.
Article 1106.
By prescription, one acquires ownership and other real rights through the lapse of time in the manner and under the
conditions laid down by law.
In the same way, rights and actions are lost by prescription.
Article 1144. (W-O-J)

The following actions must be brought within ten years from the time the right of action accrues:
(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment.
4. How is the running of the prescriptive period of actions interrupted?

Article 1155. (F-E-A)
The prescription of actions is interrupted when they are filed by the court, when there is a written extrajudicial demand
by the creditors, and when there is any written acknowledgement of the debt by the debtor.
5. Enumerate the 4 instances when a party may be liable for damages (Art. 1170)
Article 1170.
Those who in the performance of their obligations are guilty of FRAUD, NEGLIGENCE, or DELAY, and those who in
any manner CONTRAVENE THE TENOR thereof, are liable for damages.
6. Define consent. Give 4 instances when consent may be considered defective or vitiated.
Article 1319.
Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to
constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a
counter-offer.
Acceptance made by letter or telegram does not bind the offerer except from the time it came to his knowledge. The
contract, in such a case, is presumed to have been entered into in the place where the offer was made.
Consent is the conformity of wills and with respect to contracts, it is the agreement of the will of one contracting party
with that of another or others, upon the object and terms of the contract.
Vices of consent (Art. 1330): (VIMFU)
1. Vices of the will (vicios de la formacion de la voluntad)
a. Violence
b. Intimidation
c. Mistake
d. Fraud
e. Undue influence
7. State the two main characteristics of a “good” consent.

Characteristics of consent.
In order that consent may be sufficient for purposes of contract, it is required, not only that it exists. Aside from the
requirement that consent must be manifested by the meeting of the offer and the acceptance (Art. 1319.), there is no
valid consent unless:
(1) It is intelligent. — There is legal capacity to act. (see Arts. 1327- 1329.) The consent must be given with an exact
notion over the thing consented to or the matter to which it refers. In the case of a juridical persons such as a
corporation, consent may only be given through officers duly authorized by its board of directors;
(2) It is free and voluntary. — There is no vitiation of consent by reason of violence or intimidation (see Art. 1330.);
and
(3) It is conscious or spontaneous. — There is no vitiation of consent by reason of mistake, undue influence, or fraud.
Thus, Article 1330 enumerates in a negative manner the different requisites of consent. In addition, under Articles
1327, 1328, and 1329, the contracting parties must possess the necessary legal capacity. (Arts. 1327-1329.)
Simulation of contract renders the apparent contract void. (see Arts. 1345-1346.)
8. Define Fraud.
Article 1338.
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 have not agreed to.
FRAUD (Dolo) -- is the voluntary execution of a wrongful act, or a willful omission which prevents the normal
realization of the prestation, knowing, and intending the effects which naturally and necessarily arise from such act or
omission. Implies some kind of malice or dishonesty and cannot cover cases of mistake and errors in judgment made
in good faith. In such case obligor can be held liable for damages.
9. Define the two (2) types of simulated contracts.

Article 1345.
Simulation of a contract may be absolute or relative. The former takes place when the parties do not intend to be
bound at all; the latter, when the parties conceal their true agreement.
Article 1346.
An absolutely simulated or fictitious contract is void. A relative simulation, when it does not prejudice a third person
and is not intended for any purpose contrary to law, morals, good customs, public order or public policy binds the
parties to their real agreement.
Kinds of simulation of contract:
1.Absolute (simulados) –parties do not intend to be bound by the contract at all. Status: VOID.
2.Relative (disimulados) –parties conceal their true agreement. It binds the parties to their real agreement, when it
does not prejudice a third person and is not intended for any purpose contrary to law, morals, good customs, public
order or public policy (i.e. a deed of sale of a piece of land is executed by the parties to conceal their two agreement
which is a donation).
10. Enumerate 4 contracts which must appear in a public document.

Article 1358.
The following must appear in a public document:
(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, 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.
11. Define Reformation. What instrument cannot be the subject of reformation?

Article 1359.
When, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in
the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one
of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed.
If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the proper
remedy is not reformation but annulment of contract.
Article 1366. (S-W-R)

There shall be no reformation in the following cases:
(1) Simple donations inter vivos wherein no condition is imposed;
(2) Wills;
(3) When the real agreement is void.
COMPARATIVE TABLE:
12. Enumerate 5 contracts which are considered rescissible.
CONTRACTS THAT ARE RESCISSIBLE (Arts. 1381- 1382):
1.Those entered into by guardians where the ward
suffers lesion of more than 1⁄4 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 1⁄4 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
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 for obligations
whose fulfillment the debtor could not be compelled at the time they were effected.
13. Enumerate 2 contracts which are considered voidable.

Voidable or Annullable Contracts::
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. (Art. 1390)
14. Differentiate rescissible contracts from voidable contracts.

RESCISSIBLE CONTRACTS
These are contracts which are valid but are defective because of injury or damage to either of the contracting parties
or to third persons, as a consequence of which it may be rescinded by means of a proper action for rescission.
Voidable Contracts
Voidable or annullable contracts are existent, valid, and binding, although they can be annulled because of want of
capacity or vitiated consent of one of the parties; but before annulment, they are effective and obligatory between the
parties. Hence, it is valid until it is set aside, and its validity may be assailed only in an action for that purpose.
15. Enumerate 3 contracts which are considered unenforceable.

Unenforceable contract
Those which cannot be enforced by proper action in court unless they are ratified, because, either:
1. They are entered into without or in excess of authority
(Art. 1403, no.1; Art. 1317);
2. They do not comply with the statute of frauds;
3.Both contracting parties do not possess the required
legal capacity.
16. Differentiate voidable contract and unenforceable contract.

Voidable Contracts
Voidable or annullable contracts are existent, valid, and binding, although they can be annulled because of want of
capacity or vitiated consent of one of the parties; but before annulment, they are effective and obligatory between the
parties. Hence, it is valid until it is set aside, and its validity may be assailed only in an action for that purpose.
Voidable or Annullable Contracts:
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. (Art. 1390)
Unenforceable contract
Those which cannot be enforced by proper action in court unless they are ratified, because, either:
1. They are entered into without or in excess of authority
(Art. 1403, no.1; Art. 1317);
2. They do not comply with the statute of frauds;
3.Both contracting parties do not possess the required
legal capacity.
17. Define “solutio indebiti”

Solutio indebiti is the juridical relation which is created when something is received when there is no right to demand
it and it was unduly delivered through mistake. (Art. 2154.)
18. Define “negotiorum gestio”

Negotiorum gestio is the voluntary management of the property or affairs of another without the knowledge or
consent of the latter. (Art. 2144.) Thus, if through the efforts of X, a neighbor, the house of Y was saved from being
burned, Y has the obligation to reimburse X for the expenses X incurred although Y did not actually give his consent
to the act of X in saving his house on the principle of quasi-contract.
19. Enumerate and define the two types of estoppel.

Estoppel in pais - It arises when one by his acts, representations or admissions, or by his silence when he ought to
speak out, intentionally or through culpable negligence, induces another to believe certain facts to exist, and such
other rightfully relies and acts on such belief, so that he will be prejudiced if the former is permitted to deny the
existence of such facts. It takes place in a situation where because if a party’s action or omission, he is denied the
right to plead or prove an otherwise important fact.
Estoppel by deed – a bar which precludes one party to a deed and his privies from asserting as against the other
party and his privies any right or title in derogation of the deed, or from denying the truth of any material facts
asserted in it; a written instrument is necessary for there to be estoppel by deed
20. What is estoppel by laches? Differentiate estoppel by laches from extinctive prescription of action.
Laches or “Stale Demands”
Failure or neglect, for an unreasonable and unexplained length of time, to do that which, by exercising due diligence,
could or should have been done earlier; it is negligence or omission to assert a right within a reasonable time,
warranting a presumption that the party entitled to assert it either has abandoned it or declined to assert it.
Prescription Laches
Concerned with the fact of delay Concerned with the effect of delay
Question or matter of time Question of inequity of permitting the claim to be enforced
Statutory Not statutory
Applies in law Applies in equity
Cannot be availed of unless it is specifically Being a defense in equity, it need not be specifically pleaded
pleaded as an affirmative allegation
Based on a fixed time Not based on a fixed time

Consent Is The Conformity of Wills and With Respect To Contracts, It Is The Agreement of The Will of One Contracting Party

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OBLIGATIONS AND CONTRACTS - SECOND PRE-FINALS

1. Define estoppel. Give three (3) examples of estoppel.

2. Define natural obligations. Give three (3) examples.

Article 1144. (W-O-J)

4. How is the running of the prescriptive period of actions interrupted?

7. State the two main characteristics of a “good” consent.

9. Define the two (2) types of simulated contracts.

10. Enumerate 4 contracts which must appear in a public document.

11. Define Reformation. What instrument cannot be the subject of reformation?

Article 1366. (S-W-R)

13. Enumerate 2 contracts which are considered voidable.

14. Differentiate rescissible contracts from voidable contracts.

15. Enumerate 3 contracts which are considered unenforceable.

16. Differentiate voidable contract and unenforceable contract.

17. Define “solutio indebiti”

18. Define “negotiorum gestio”

19. Enumerate and define the two types of estoppel.

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