Contracts Overview - Article 1305
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Questions and Answers

Which of the following is true about the object of a contract?

  • All rights that are not intransmissible may be objects of contracts. (correct)
  • All things outside the commerce of men can be contracted.
  • Only non-transmissible rights can be the object of a contract.
  • Services that are against public policy can be contracted.

    • Contracts may be entered into upon future inheritance without any restrictions.

    False

    What constitutes fraud in a contract?

    Failure to disclose facts when there is a duty to reveal them.

    The statement of a false cause in contracts shall render them _____ if it cannot be proven that they were founded upon another cause.

    <p>void</p> Signup and view all the answers

    Match the following terms related to contracts with their definitions.

    <p>Fraud = Failure to disclose facts when obliged Future inheritance = Property or rights not yet acquired False cause = Grounds for voiding a contract Impossible objects = Things or services that cannot be contracted</p> Signup and view all the answers

    Which of the following statements about future things in contracts is correct?

    <p>Future things may be valid contracts if they have the potential to happen.</p> Signup and view all the answers

    Inadequacy of cause can be grounds for relief in contracts.

    <p>False</p> Signup and view all the answers

    What is the term used for the object of the contract?

    <p>Subject matter</p> Signup and view all the answers

    Which type of contract requires that all essential requisites for validity are present?

    <p>Informal Contract</p> Signup and view all the answers

    A remuneratory contract is primarily focused on a donation.

    <p>False</p> Signup and view all the answers

    What is the primary reason behind an onerous contract?

    <p>Mutual obligations or prestations between contracting parties.</p> Signup and view all the answers

    A contract that is based solely on the charity of one party is called a ______.

    <p>gratuitous contract</p> Signup and view all the answers

    Match the type of contracts with their correct definitions:

    <p>Onerous = Mutual obligations between parties Remuneratory = Reward for a service rendered Gratuitous = Based on generosity Formal = Requires a specific form for validity</p> Signup and view all the answers

    In which situation does the evident intention of the parties prevail over the literal meaning of contract terms?

    <p>When terms are unclear</p> Signup and view all the answers

    A formal contract can be defined as one that does not need to comply with specific forms required by law.

    <p>False</p> Signup and view all the answers

    What is the definition of motives in the context of a contract?

    <p>Personal or private reasons for entering a contract.</p> Signup and view all the answers

    Which type of contract involves obligations on the part of only one party?

    <p>Unilateral</p> Signup and view all the answers

    A mere incidental benefit is sufficient to constitute a contract in favor of a third person.

    <p>False</p> Signup and view all the answers

    What is the legal term for contracts with no specific names or designations?

    <p>Innominate</p> Signup and view all the answers

    A contract that arises from reciprocal obligations for both parties is called a ______ contract.

    <p>bilateral</p> Signup and view all the answers

    Match the following types of contracts with their definitions:

    <p>Nominates = Contracts with specific names or designations Unilateral = Contracts creating obligations for one party Bilateral = Contracts creating reciprocal obligations for both parties Accessory = Contracts dependent upon another contract</p> Signup and view all the answers

    What protects creditors in contracts intended to defraud them?

    <p>Article 1313</p> Signup and view all the answers

    An accessory contract can stand on its own without another contract.

    <p>False</p> Signup and view all the answers

    What is the consequence for someone who induces another to violate their contract?

    <p>Liable for damages</p> Signup and view all the answers

    Which type of contract is perfected by the mere consent of the parties?

    <p>Consensual Contracts</p> Signup and view all the answers

    Indivisible contracts can be performed independently of each other.

    <p>False</p> Signup and view all the answers

    What is an example of a solemn contract?

    <p>Donation of real property</p> Signup and view all the answers

    A contract that cannot depend on another for its validity is called a ______.

    <p>principal</p> Signup and view all the answers

    Match the types of contracts with their definitions:

    <p>Consensual Contracts = Perfected by mere consent Real Contracts = Requires delivery of subject matter Solemn Contracts = Requires certain formalities Indivisible Contracts = Dependent on all parts for performance</p> Signup and view all the answers

    Which of the following describes a divisible contract?

    <p>Can be fulfilled in parts independently</p> Signup and view all the answers

    Contracts can include stipulations that are contrary to law.

    <p>False</p> Signup and view all the answers

    What article discusses the limitations of contracts?

    <p>Article 1306</p> Signup and view all the answers

    What is a defining characteristic of causal fraud?

    <p>It must be serious and should not have been known by the other party.</p> Signup and view all the answers

    Misrepresentation by a third person automatically vitiates consent.

    <p>False</p> Signup and view all the answers

    What is the effect of mistakes of law?

    <p>Ignorance of the law excuses no one from compliance.</p> Signup and view all the answers

    There is __________ when serious or irresistible force is employed to wrest consent.

    <p>violence</p> Signup and view all the answers

    Match the following terms with their definitions related to fraud and consent in contracts:

    <p>Causal Fraud = Ground for annulment of a contract Intimidation = Compulsion by well-grounded fear Misrepresentation in good faith = Error without fraudulent intent Violence = Force used to wrest consent</p> Signup and view all the answers

    Under what condition can incidental fraud lead to damages?

    <p>If it is employed by only one contracting party.</p> Signup and view all the answers

    False interpretation of a legal effect can be a mistake of law.

    <p>True</p> Signup and view all the answers

    What should be considered when determining the degree of intimidation?

    <p>The age, sex, and condition of the person.</p> Signup and view all the answers

    What is an option contract?

    <p>A contract giving a person the right to accept an offer for a certain period.</p> Signup and view all the answers

    Mistakes regarding the quantity of a thing vitiate a contract.

    <p>False</p> Signup and view all the answers

    What are the grounds under which an offer becomes ineffective?

    <p>Death, civil interdiction, insanity, or insolvency of either party.</p> Signup and view all the answers

    Mistakes as to the _____ of a party will vitiate consent only if they are the principal cause of a contract.

    <p>identity or qualifications</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Option money = Money paid for the right to accept an offer Option period = Period during which an offer can be accepted Error as regard incidents = Mistake about details or accidental qualities Mistake as to motives = Misunderstanding the reasons for entering a contract</p> Signup and view all the answers

    Which of the following does not vitiate a contract?

    <p>Error regarding the incidents of a thing</p> Signup and view all the answers

    Usual exaggerations in trade are considered fraudulent.

    <p>False</p> Signup and view all the answers

    What must be shown by the person enforcing the contract if fraud is alleged and one party cannot read?

    <p>That the terms of the contract were fully explained.</p> Signup and view all the answers

    Which type of contract is characterized by dependency on the performance of all its parts?

    <p>Indivisible Contract</p> Signup and view all the answers

    A solemn contract does not require compliance with specific formalities prescribed by law.

    <p>False</p> Signup and view all the answers

    What are contracts that are perfected by the mere consent of the parties regarding the subject matter and cause of the contracts called?

    <p>Consensual Contracts</p> Signup and view all the answers

    A contract is considered ______ when one part can be performed independently of the others.

    <p>Divisible</p> Signup and view all the answers

    Match the classifications of perfection of contracts with their descriptions:

    <p>Consensual Contracts = Perfected by mere consent Real Contracts = Perfected by the delivery of subject matter Solemn Contracts = Require compliance with formalities Indivisible Contracts = Must be performed as a whole</p> Signup and view all the answers

    Which limitation of contracts primarily relates to public safety?

    <p>Public Order</p> Signup and view all the answers

    Parties to a contract may establish stipulations that are contrary to law.

    <p>False</p> Signup and view all the answers

    What is the essential element that prevents a contract from being effective if not followed for a solemn contract?

    <p>Compliance with formalities</p> Signup and view all the answers

    Which of the following is not an essential element of a contract?

    <p>Duration of contract</p> Signup and view all the answers

    A contract entered into by an unemancipated minor is always valid.

    <p>False</p> Signup and view all the answers

    What must be present for consent to be valid in a contract?

    <p>Meeting of offer and acceptance</p> Signup and view all the answers

    The essential elements of a contract include consent, object, and __________.

    <p>cause of obligation</p> Signup and view all the answers

    Match the following types of individuals with their ability to give consent:

    <p>Unemancipated minors = Cannot give consent Insane individuals = Cannot give consent Deaf-mutes who can write = Can give consent Adults = Can give consent</p> Signup and view all the answers

    Which of the following statements about natural elements in contracts is correct?

    <p>They are presumed to exist in contracts.</p> Signup and view all the answers

    A business advertisement is considered a definite offer.

    <p>False</p> Signup and view all the answers

    What defines an accessory contract?

    <p>A contract that depends on another contract for its validity.</p> Signup and view all the answers

    What type of fraud is grounds for the annulment of a contract?

    <p>Causal fraud</p> Signup and view all the answers

    Intimidation involves the use of serious force to obtain consent.

    <p>False</p> Signup and view all the answers

    What is the consequence of misrepresentation made in good faith?

    <p>It may constitute error but is not fraudulent.</p> Signup and view all the answers

    Mistakes of law arise from ignorance of a __________ provision.

    <p>legal</p> Signup and view all the answers

    Match the following types of fraud with their descriptions:

    <p>Causal Fraud = Ground for annulment of contract Incidental Fraud = May lead to damages but not annulment Serious Intimidation = Compelling someone by fear of grave evil Good Faith Misrepresentation = Not fraudulent but may lead to error</p> Signup and view all the answers

    What is required for fraud to make a contract voidable?

    <p>It must be serious and undisclosed</p> Signup and view all the answers

    Misrepresentation by a third person vitiates consent automatically.

    <p>False</p> Signup and view all the answers

    What is required for a contract to be valid and legally enforceable?

    <p>It must meet all legal requirements for the type of agreement.</p> Signup and view all the answers

    Unauthorized contracts are enforceable if ratified by the concerned party.

    <p>True</p> Signup and view all the answers

    What is the term for the stage when both parties reach a definite agreement in a contract?

    <p>Perfection</p> Signup and view all the answers

    A contract that is entered into in the name of another by someone who has no authority is considered _____ unless ratified.

    <p>unenforceable</p> Signup and view all the answers

    Match the following types of innominate contracts with their definitions:

    <p>Do ut des = I give that you may give Do ut facias = I give that you may do Facto ut des = I do that you may give Facto ut facias = I do that you may do</p> Signup and view all the answers

    What is one consequence of a contract being unilateral?

    <p>Only one party is bound to fulfill the obligations.</p> Signup and view all the answers

    Contracts shall take effect only between the contracting parties, their _____ and heirs.

    <p>assigns</p> Signup and view all the answers

    What is the period called that gives the offeree time to accept an offer?

    <p>Option period</p> Signup and view all the answers

    Mistakes regarding the identity of a party will always invalidate a contract.

    <p>False</p> Signup and view all the answers

    An option contract is one that gives a person for a consideration a certain period to _____ the offer.

    <p>accept</p> Signup and view all the answers

    Match the following types of errors with their consequences:

    <p>Error as regards incidents of a thing = Does not vitiate the contract Mistakes as to quantity = Does not vitiate the contract Mistake regarding identity of a party = May vitiate the contract Error which could have been avoided = Does not vitiate the contract</p> Signup and view all the answers

    Which of the following mistakes does NOT vitiate a contract?

    <p>Error in the incidents of a thing</p> Signup and view all the answers

    What is the payment made for the option in an option contract called?

    <p>Option money</p> Signup and view all the answers

    What constitutes fraud in the context of a contract?

    <p>Failure to disclose facts when there is a duty to reveal</p> Signup and view all the answers

    Future things can be valid objects of a contract, provided they have the potential to occur.

    <p>True</p> Signup and view all the answers

    What happens if a statement of a false cause in contracts cannot be proven to be founded on another lawful cause?

    <p>The contract is rendered void.</p> Signup and view all the answers

    A contract cannot include services that are __________.

    <p>impossible</p> Signup and view all the answers

    Match the following concepts related to contract objects with their definitions:

    <p>Future Inheritance = Property or right not presently owned Concealment = False representation of facts Intransmissible rights = Rights that cannot be transferred Public Order = Norms pertaining to the public interest</p> Signup and view all the answers

    Which of the following statements about contracts is correct?

    <p>Contracts involving the object contrary to law, morals, or public policy are invalid.</p> Signup and view all the answers

    The absence of cause in a contract means there is a total lack of any valid consideration.

    <p>True</p> Signup and view all the answers

    The object of the contract refers to its __________.

    <p>subject matter</p> Signup and view all the answers

    Study Notes

    Article 1305 - Contracts

    • Contracts are agreements between two or more parties where one party obligates themselves to another to give something or perform a service

    • Classifications of Contracts:

      • Nominate: Contracts with specific names in law
      • Innominate: Contracts with no specific names in law
      • Unilateral: Obligations on one party only
      • Bilateral: Reciprocal obligations for both parties
      • Accessory: Dependent on another contract
      • Principal: Independent of other contracts
      • Indivisible: Parts dependent on each other
      • Divisible: Parts can be performed independently

    • Limitations of Contracts:

      • Must not be contrary to law, morals, good customs, public order, or public policy.

    • Valid Contracts:

      • Meet all legal requirements, are legally binding and enforceable.

    • Kinds of Innominate Contracts:

      • do ut des (I give that you may give)
      • do ut facias (I give that you may do)
      • facto ut des (I do that you may give)
      • facto ut facias (I do that you may do)

    • Article 1308: The contract must bind both parties.

    • Article 1311: Contracts primarily bind the parties involved and their heirs and assigns, unless specified otherwise, or by law.

    • Article 1313: Creditors are protected in cases of fraudulent contracts.

    • Article 1314: Any party inducing another to break a contract faces liability for damages to the other party.

    • Perfection of Contracts:

      • Consensual: Perfected by mere consent (e.g., sales, leases, agency)
      • Real: Perfected by delivery of the item (e.g., deposits, pledges, loans)
      • Solemn: Require specific formalities (e.g., certain donations of real property)

    • Stages of the Life of a Contract:

      • Preparation/Negotiation
      • Perfection/Birth
      • Consummation/Termination

    • Article 1317: Contracting in the name of another requires authorization. Unauthorized contracts are unenforceable unless ratified.

    Essential Elements of Contracts (1318)

    • Consent: Agreement between parties, which requires intelligent, free, and voluntary consent.

    • Object: Subject matter of the contract, must be definite and possible

    • Cause (or Consideration): Essential reason behind the contract, legitimate and valid

    • Classes of Elements

    • Essential elements: Common to all contracts (e.g., consent, object, cause)

    • Natural elements: Those implied by law present in some contracts (e.g., warranties)

    • Accidental elements: Established by the parties, such as specific conditions or stipulations.

    • Manifestation: Meeting of offer and acceptance on the thing and cause of the contract

    • Offer: Proposal to enter a contract

    • Acceptance: Manifestation of assent to all terms of the offer.

    • Article 1321: The offeror can specify time, place, and manner of acceptance

    • Incapacity to Consent: Includes unemancipated minors, insane persons, deaf-mutes, persons in a state of drunkenness or hypnotic spell.

    • Article 1328: Contracts during lucid intervals are valid.

    Vices of Consent (Article 1330)

    • Mistake (Error): False notion about essential aspects of the contract
    • Violence (Force): Serious or irresistible force to obtain consent,
    • Intimidation (Threat): Fear from imminent and grave evil to consent.
    • Undue Influence: Influence overpowers a party's free will.
    • Fraud(deceit)): Lying or hidden actions to cause consent, with intent to deceive and induce another contract.
    • Causal Fraud: Fraud committed before the contract to obtain consent
    • Incidental Fraud: Fraud not the main factor in obtaining consent

    Mistakes of Law

    • Article 1332: Person unable to read or doesn't understand language must have contract terms explained.
    • Mistakes of law do not excuse parties from contract obligations.

    Simulation of Contract

    • Absolute Simulation: Parties intend no contract at all.
    • Relative Simulation: Parties conceal true agreement.

    Objects of Contracts

    • Things outside commerce invalid
    • Future inheritance invalid except in specific legal circumstances
    • Impossible things invalid

    Cause of Contracts

    • Onerous: Exchange of prestations
    • Remuneratory: Reward for services
    • Gratuitous: Based on generosity

    Interpretation of Contracts

    • Clear terms are interpreted literally
    • If words seem to contradict intent, intent prevails
    • Interpretation should consider all terms to arrive at a comprehensive understanding.

    Defective Contracts

    • Rescissible: Valid contracts but remedied due to specific reasons
    • Voidable: Valid contracts, but one party has a right to annul due to lack of consent or other deficiencies
    • Unenforceable: Contracts not enforceable until ratified
    • Void (inexistent): Contracts lacking essential elements, are absolutely void.

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