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Coprade, Jake Roger B. 1St Year Block C Obligations and Contracts Week 3 Assessment (Answers) I

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COPRADE, JAKE ROGER B.

1ST YEAR BLOCK C

OBLIGATIONS AND CONTRACTS WEEK 3 ASSESSMENT (ANSWERS)

I.
Pursuant to Article 1327 of the New Civil Code (NCC), Unemancipated minors cannot give
consent to a contract. Consent given in legal capacity is one of the essential requisites of a
valid contract. If a party who is not of legal capacity (such in the case of an unemancipated
minor) enters into a contract, such contract is deemed voidable due to vitiation of consent.
This is provided by Article 1390 of the NCC and the same Article also provides that annulment
of such contract must be made by a proper action in court, otherwise the same is still binding.
Assuming that a new contract was established when Rodrigo turned 18, hence made in legal
capacity of the originally unemancipated minor party, Rodrigo can no longer deem the contract
voidable since the elements for a voidable contract is no longer present. However, the facts of
the case did not state whether a new contract was established when Rodrigo turned 18, it only
stated that he gave a promise to establish a new contract. Given the circumstances, the
original deed shall stand. Article 1391 of the NCC provides that action for annulment shall be
brought pithing four years and shall begin, in the case of contract entered into by minors, from
the time guardianship ceases which in this case is 18 years of age. Rodrigo should have
brought action to the case from the time he turned 18 until he was 22 years old and not now
when he is already 25 years old. Therefor the ruling must be in favor of the buyer due to the
fact the bringing if action in such case have already prescribed.

II.
Article 1380 of the NCC provides for the rescission of valid contracts. In order for a contract to
be rescinded, injury or damage must be suffered by either of the parties or by a third party. In
the case provided, it is clear that the buyer of the property had knowledge of the contract of
lease existing between the lessee and the lessor and have agreed to respect such agreement
making it presumed that the lessee may continue leasing the property hence no injury or
damage was sustained by them as third party to the contract of sale later established. Lacking
this characteristic, the lessee may not proceed to bring action for rescission of the contract of
sale between the seller-lessor and the buyer. However, since the lease of contract expressly
states that the lessee had the right of first refusal, the offer to sell the property must first be
given to the lessee. In this regard, since it was expressly provided in the contract of lease, the
lessee has the right to bring action for specific performance for the lessor to execute a deed of
sale in favor of the lessee for the same price. The deed of sale between the lessor and the
buyer is then considered voidable and must be brought to action for it to be declared void,
since Article 1390 provides that contracts vitiated by mistakes or fraud, such as in the case,
are considered voidable.

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