Chapter 2ESSENTIALS REQUISITES OF CONTRACTSGeneral ProvisionsSection 1 - ConsentConsentManifested by the meeting of the offer and acceptance upon the thing and the cause which are to constitute the contract.Requisites:Legal capacity of the contracting parties.Manifestation of the conformity of the contracting partiesThe parties conformity to the object, cause, the terms and conditions of the contract must be intelligent spontaneous and free from all vices of consent.The said conformity must be real and not simulated or fictitiousRequisite 1Legal CapacitynullIncapacitated to give consentMinor, UNLESS, the minors consent is operative in contractsFor necessaries(Art. 1427)When the minor actively misrepresents his age (estoppel)B. Insane or demented persons, UNLESS, they contract during a lucid intervalC. Deaf-mutes who do not know hoe to read and writenullDisqualified to Contract (Art. 1329)Those under Civil interdiction for transaction inter vivosUndischarged insolventsHusband and wife: cannot donate to each other, nor sell if the marriage is under ACPMembers of Ethnic Minorities: their contracts (excluding sale of personal property or personal service contracts) must be approved by the Governor or his representativeThe ff. cannot purchaseThe guardian: his wards propertiesThe agent: the principal propertyExecutors and administrators: property under administrationPublic officers: state property under their administrationJustices, judge, prosecutors, clerks of court, lawyers- property attached to litigationnullnullIncapacity to Give Consent (Art. 1327)Disqualification to contract (Art. 1329)Restrains the right to exercise the right to contract

Restrains the very right itselfBased on subjective circumstances of certain persons

Based on public policy and moralityVoidableVoidRequisite 2 ConcurrenceOfferAcceptancenullOffer a proposal made by one party to another to enter into a contract. (Definite, Intentional, Complete)Acceptance manifestation by the offeree of his assent to the terms of the offer.

The offer must be certain and the acceptance absoluteConsensual contracts are perfected from the moment there is a manifestation on concurrence between the offer and the acceptance regarding the object and the cause.Real contracts like deposit, pledge and commodatum requires delivery of object for perfection.Contracts under the Civil Code generally adhere to the Cognition Theory, while transactions under the Code of Commerce use the Manifestation Theory.Offer Terminates Upon:Rejection by the offerIncapacity (death, civil interdiction, insanity, or insolvency) of the offeror or offer before acceptance is conveyedCounter-offerLapse of the time stated in the offer without acceptance being conveyedRevocation of the offer before learning of acceptanceSupervening illegality before acceptancenullAcceptanceRequisites:Unqualified and Unconditional: i.e it must conform with all the terms of the offer, otherwise it is a counter-offer (Art. 1319)Communicated to the offeror and learned by him (Art 1319, 1322). If made through an agent, the offer is accepted from the time the acceptance is communicated to such agentExpress/Implied but not presumednullOption ContractA preparatory contract in which one party grants to the other, for a fixed period of, the option to decide whether or not to enter into a principal contract. (Art. 1324)nullRequisite 3The parties conformity to the object, cause, the terms and conditions of the contract must be intelligent spontaneous and free from all vices of consentnullVices of Consent (MIVUF)

Mistake should refer to the substance of the thing which is the object of the contract, or to those conditions which have principally moved one or both parties to enter into the contract.Intimidation when 1 of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or prop of his spouse, descendants or ascendants, to give his consent.Violence when in order to wrest consent, serious or irresistible force is employed.Undue influence when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice.Fraud when through insidious words or machinations of 1 of the contracting parties, the other is induced to enter into a contract which without them, he would not have agreed to.FraudArt 1339, Civil Code. Failure to disclose facts, when there is duty to reveal them, as when the parties are bound by confidential relations, constitutes fraudArt 1340, Civil Code. The usual exaggeration in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent Art 1341, Civil Code. A mere expression of an opinion does not signify fraud, unless made by an expert and the other party had relied on the formers special knowledge.Art 1342, Civil Code. Misrepresentation by a third party does not violate consent, unless, such misrepresentation has created substantial mistakes and the same is mutualArt 1343, Civil Code. Misrepresentation made in good faith is not fraudulent but may constitute error.nullSection 2 Object of ContractsObject

Requisites:Transmissible: It must be within the commerce of man.Lawful: It must be licit or not contrary to law, morals, good customs, public order or public policy.It must be possible.It must be determine as to its kind.All things or services may be the object of contracts EXCEPTThings which are outside the commerce of menIntransmissible thingsFuture inheritance except in cases authorised by lawImpossible things or servicesObjects which are indeterminable as to their kins, the genus should be expressed

In order that a thing, right or service may be the object of a contract, it should be in existence at the moment of the celebration of the contract, or at least, it can exist subsequently or in the futurenullA FUTURE thing may be the object of a contract, such contract may be interpreted as a :Conditional Contract- the efficacy should depend upon the future existence of the thingAleatory Contract- one of the contracting parties assumes the risk that the thing will never come into existence. e.g insurancenullSection 3 Cause of ContractsCauseThe immediate, direct and most proximate reason which explains and justifies the creation of obligation.Requisites:Cause should be in existence at the time of the celebration of the contract.Cause should be licit or lawful.Cause should be true.

Rules:In onerous contracts, the cause is understood to be, for each party, the prestation of promise of a thing or service by the other.In remuneratory contracts, the service or benefit which is remunerated.In contracts of pure beneficence, the mere liberality of the benefactor. CauseAbsence of cause

Failure of causeIllegality of causeFalsity of cause

LessonEffectThe contract confers no right and produces no legal effect.Does not render the contract void.The contract is null and void.The contract is void, unless the parties show that there is another cause which is true and lawful.Does not invalidate the contract, unless (1) there is fraud, mistake, or undue influence; or (2) when the parties intended a donation or some other contract.