Form of Contracts Flashcards
Art. 1356 (General Rule for Form of Contracts)
Contracts shall be obligatory in whatever form they may have been entered into, provided all the essential requisites for their validity are present
Three exemptions to Art. 1356 (General Rule for Form of Contracts)
- For purposes of validity, e.g., formal contracts
- For purposes of enforceability, e.g., statute of frauds
- For purposes of convenience
Seven kinds of formal contracts
- Donation of immovable property (Art. 749)
- Donation of movables worth more than P5,000.00 (Art. 748)
- Contracts to pay interest on loans (Art. 1956)
- Stipulation limiting the liability of carrier to a degree less than extraordinary diligence(Art. 1744)
- Contract of Partnership, when an immovable is contributed (Art. 1773)
- Real Estate Mortgage (Art. 1874)
- Contract of Antichresis (Art. 2134)
Refers to contracts whose purpose is to prevent fraud and perjury in the enforcement of obligations depending for their evidence on the “unassisted memory of witnesses.”
Statute of Frauds
Six contracts covered under Statute of Frauds
- An agreement that by its terms is not to be performed within a year from the making thereof.
- A special promise to answer for the debts, default, or miscarriage of another.
- An agreement made** in consideration of marriage**, other than a mutual promise to marry.
- An agreement for the sale of goods, chattels or things in action at a price not less than P500.00.
- An agreement of the leasing for a longer period than one year, or for the sale of real property or of an interest therein; and
- A representation as to the credit of a third person.
T/F. If a contract is covered by the Statute of Frauds,** “the same, or some note or memorandum thereof, must be in writing, and subscribed by the party charged.”** And the note ** must be complete in itself and cannot rest partly in writing and partly in parol** (oral evidence).
True.
Does the note of memo need to be contained in a single document?
Need not to be. Just that the contents of any paper be sufficient to satisfy the statute
T/F. Failure to object to presentation of oral evidence will be deemed a waiver of the obkection to parol evidence?
True. See Art. 1405
T/F. If the law requires a document or other special form, the contracting may NOT compel each other to observe that form once the contract has been perfected
False. See Art. 1357, or formal requirement as a matter of convenience
The right to compel each other to observe a special form once a contract has been perfect presupposes…
That a valid contract between the parties actually exist.
Art 1358. Four kinds of contract which let you compel contracting parties from following a special form
- Real rights over immovables
- Cession, repudiation or renunciation of hereditary rights or conjugal partnership of gain
- Power of admin and similar powers
- Cession of actions or rights
A remedy whereby an written instrument is made or construed so as to express or conform to the real intention of the parties where some mistake, fraud, inequitable conduct or accident has occurred or been committed
Reformation
T/F. In granting reformation, the Court is making a new contract for the parties
False. Not making a new contract, just establishing the real contract between parties
Three requisites for reformation
- Meeting of the minds
- Instrument does NOT express true intention
- Non-expression is due to mistake, fraud, inequitable conduct or accident
Six specific instances of reformation
- Mutual mistake
- Mistake by one party
- Mistake by one party due to fraud or inequitable conduct by the other (Art. 1362)
- Mistake by one party due to concealment by the other (Art. 1363)
- Ignorance, lack of skill, negligence or bad faith (Art. 1364)
- Sale which is really a mortgage or a pledge (Art. 1365)
