CHAP 2 SEC 3 (contracts)

Question 1

Cause (causa)

Answer 1

• ESSENTIAL REASON or PURPOSE which the CONTRACTING PARTIES HAVE IN VIEW at the time of ENTERING INTO THE CONTRACT
• It is SOMETHING BARGAINED FOR or GIVEN BY A PARTY in exchange for a LEGALLY ENFORCEABLE PROMISE of another
• It is the Civil Code term for CONSIDERATION in Anglo-American or common law

Question 2

Contracts according to CAUSE

Answer 2

1. Onerous contract
2. Remuneratory or remunerative contract
3. Gratuitous

Question 3

Onerous contract

Answer 3

Parties are RECIPROCALLY OBLIGATED TO EACH OTHER

CAUSE for each contracting party is the PORESTATION OR PROMISE of a thing or service BY THE OTHER

Question 4

Remuneratory or remunerative contract

Answer 4

CAUSE of which is the SERVICE OR BENEFIT which is REMUNERATED

PURPOSE of the contract is to REWARD THE SERVICE that had been previously rendered by the party REMUNERATED

Question 5

Gratuitous contract

Answer 5

CAUSE of which is the LIBERALITY of the BENEFACTOR or GIVER

Question 6

It is the Civil Code term for CONSIDERATION in Anglo-American or common law

Answer 6

Cause (causa)

Question 7

Motive

Answer 7

Is the PURELY PERSONAL or PRIVATE REASON which a party has in entering into a contract

Question 8

Requisites of Cause

Answer 8

1. It must EXIST at the time the CONTRACT IS ENTERED INTO
2. It must be LAWFUL
3. It must be TRUE or REAL

Question 9

Absence/ Want of Cause

Answer 9

There is a TOTAL LACK of ANY VALID CONSIDERATION for the contract

Question 10

Failure of Cause

Answer 10

Does NOT RENDER a contract VOID

Question 11

Inadequacy of Cause

Answer 11

Is NOT A GROUND for relief

Question 12

Illegality of Cause

Answer 12

There is a cause but the same is UNLAWFUL or ILLEGAL

Question 13

Falsity of Cause

Answer 13

Contract states a valid consideration but such statement is NOT TRUE

Question 14

Lesion

Answer 14

ANY DAMAGE caused by the fact that the PRICE IS UNJUST or INADEQUATE

INJURY suffered in consequence of INEQUALITY of situation, by one party who does not receive the FULL EQUIVALENT for what he gives in a COMMUTATIVE CONTRACT, like a sale

Question 15

Lesion will INVALIDATE A CONTRACT…

Answer 15

1. When there has been FRAUD, MISTAKE, or UNDUE INFLUENCE
2. In CASES SPECIFIED BY LAW