Contract Law Basics

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Questions and Answers

What is required for the validity of consent in a contract?

The contract must be executed in front of a notary

The parties must manifest concurrence of offer and acceptance (correct)

The parties must have identical interests

The agreement must be in writing

Which of the following is an essential element of a contract?

Documentation

Good faith

Consideration (correct)

Witnesses

What distinguishes a gratuitous contract from other contracts?

It must involve a written agreement

There is no consideration received in exchange (correct)

It requires legal representation

It must be notarized

What is a characteristic of an offer in contract law?

It must come from one party to another Signup and view all the answers

Which of the following describes 'discernment' in the context of consent for contracts?

Understanding the full consequences of one's actions Signup and view all the answers

Which of the following is NOT an example of a situation where a contract would be voidable?

Consent given by a person of sound mind Signup and view all the answers

What is a necessary requirement for an object in a contract to be considered valid?

It must be within the commerce of man Signup and view all the answers

Which of the following scenarios represents a type of incapacity that makes a contract unenforceable?

Both parties being minors Signup and view all the answers

Which of the following rights are considered intransmissible and cannot be assigned by contract?

Rights relating to future inheritances Signup and view all the answers

Which of the following is a valid object for a contract according to the requisites provided?

A licit and determinate object Signup and view all the answers

What occurs when a party dies before the acceptance of an offer is conveyed?

The offer becomes ineffective Signup and view all the answers

What is a qualified acceptance considered to be?

A counter-offer or new proposal Signup and view all the answers

What is the general rule regarding acceptance made by letter or telegram?

It does not bind the offeror until received Signup and view all the answers

In business advertisements for things for sale, what are these advertisements typically considered?

Invitations to make an offer Signup and view all the answers

Under what circumstance can silence be considered an acceptance?

When agreeing expressly or impliedly that silence counts as acceptance Signup and view all the answers

Which of the following cannot give consent to a contract?

Unemancipated minors Signup and view all the answers

What is the general rule regarding the objects of contracts?

All things or services may serve as objects Signup and view all the answers

What happens when acceptance is made with a condition?

It constitutes a counter-offer Signup and view all the answers

What is the definition of a contract?

A meeting of minds between two persons binding themselves to perform. Signup and view all the answers

Which stage of a contract involves the parties performing their commitments?

Consummation Signup and view all the answers

What type of contract is perfected by mere consent?

Consensual contract Signup and view all the answers

Which of the following contracts is classified as a principal contract?

Sale Signup and view all the answers

What is an innominate contract?

A contract without a specific name assigned. Signup and view all the answers

What occurs during the negotiation stage of a contract?

Either party may stop the negotiation at any time prior to perfection. Signup and view all the answers

Which type of contract is dependent on another for its validity?

Accessory contract Signup and view all the answers

What is a characteristic of onerous contracts?

They involve some form of exchange between parties. Signup and view all the answers

What are the essential requisites of a contract according to Article 1318?

Consent, Object, Consideration Signup and view all the answers

Why must the offer be certain according to the content?

To prevent vagueness in liability and rights Signup and view all the answers

What is defined as the manifestation of the offeree's assent to the terms of the offer?

Acceptance Signup and view all the answers

What type of acceptance is required for a contract to be valid?

Express and absolute Signup and view all the answers

What does silence constitute under certain circumstances in contract law?

Estoppel Signup and view all the answers

Which of the following is NOT part of the definition of consent?

Following a procedure Signup and view all the answers

What does an acceptance that is identical in all respects with the offer signify?

A legal obligation has been created Signup and view all the answers

Which statement concerning the contents of an offer is correct?

The offer should be clear to facilitate acceptance. Signup and view all the answers

Study Notes

Definition of a Contract

A contract is an agreement where two or more parties bind themselves to fulfill a prestation (give something, render service, or refrain from doing something).

Stages of a Contract

Negotiation: Parties express interest and discuss terms before reaching an agreement.
- Either party can terminate negotiations without consequence before the contract is perfected.
Perfection: The contract is formed when parties reach a "meeting of the minds" on the object and cause.
- This occurs when an offer is made and accepted.
  - In consensual contracts, perfection occurs upon meeting of the minds.
  - In real contracts, perfection happens when the object is delivered.
Consummation: Parties perform their obligations, leading to contract completion and extinction.

Classification of Contracts

According to Perfection:
- Consensual: Perfected by agreement (e.g., sale, barter).
- Real: Perfected by delivery of the object (e.g., pledge, loan).
According to Degree of Importance:
- Principal: Stand alone (e.g., sale, loan).
- Accessory: Depends on another contract for validity (e.g., pledge, guaranty).
According to Name:
- Nominate: Designated by law (e.g., sale, lease, partnership).
- Innominate: No specific name (e.g., contracts not fitting into existing categories).
According to Cause:
- Onerous: Exchange of considerations (e.g., sale, lease).
- Gratuitous: One party gives something without receiving equivalent compensation (e.g., donation, commodatum).

Essential Requisites of a Contract

Consent: Agreement of the parties on the object and cause of the contract.
Object: The specific subject matter of the obligation.
Cause: The reason or motivation for entering the contract.

Elements:
- Offer: Proposal by one party to another.
- Acceptance: Assent by the offeree to the offer's terms.
- Legal Capacity: Parties must be legally capable of contracting.
- Intelligence, Freedom, and Reality: Consent must be genuine, not coerced or influenced by mistake.

Offer

Characteristics:
- Certain: Clear and definite, specifying the parties' rights and obligations.
- Made to a Specific Person: Offers cannot be forced onto unwilling parties.

Acceptance

Characteristics:
- Absolute: Unqualified and identical to the offer.
- Effectively Communicated: The offeror must be aware of the acceptance.
Forms:
- Express: Clearly communicated through words (oral or written).
- Implied: Inferred from actions or conduct.

When Offers Become Ineffective

Death, Insanity, or Civil Interdiction: Of either party before acceptance.
Insolvency: Of either party, before acceptance.

Business Advertisements

Not considered definite offers; they are invitations to make an offer.
Advertisements for bidders: Invitations to submit proposals, not binding the advertiser to accept any bid.

Acceptance by Silence or Inaction

General Rule: Silence does not equate to acceptance.
Exceptions:
- Express or Implied Agreement: Parties agree that silence constitutes acceptance.
- Legal Provisions: Specific laws mandate that silence be interpreted as acceptance.

Unemancipated Minors: Legally incapable of making contracts.
Insane or Demented Persons: Lack the mental capacity to consent.
Deaf Mutes Who Cannot Write: Unable to fully understand the contract's terms.

Consequences of a Contract with Incapable Parties

One Incapable Party: The contract is voidable and can be annulled by the incapable party.
Both Incapable: The contract is unenforceable unless ratified by a legal representative.

Factors that render consent invalid, making the contract voidable:
- Violence: Physical force or threat.
- Intimidation: Threat of causing harm.
- Mistake: Error about the nature of the contract.
- Fraud: Deception or misrepresentation.
- Undue Influence: Abuse of power or relationship to influence someone.

Object

Definition: The thing, right, or service that is the subject matter of the contract.
Requisites:
- Within the Commerce of Man: Must be legally traded.
- Real or Possible: Must exist or be capable of existing.
- Licit: Must be legal.
- Determinable: Must be clearly identified or capable of being identified.

Things that Cannot be Objects of Contracts

Excluded from the Commerce of Men: Things not legally available for trade.
Intransmissible Rights: Rights that cannot be transferred.
Future Inheritance: Not allowed except in specific legal exceptions.
Services Contrary to Law, Morals, or Public Order: Illegal or unethical services.
Impossible Things or Services: Impossible to perform.
Objects Not Possible of Determination: Not identifiable or specifiable.

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Description

This quiz explores the fundamental concepts of contract law, including definitions, stages, and classifications of contracts. Test your knowledge on negotiation, perfection, and consummation processes that govern contractual agreements.