Rodas, Mary Joy B. 1BSA-B Pamantasan ng Cabuyao Thank you Atty. for the lecture vids. Here's my takeaways from the video CHAPTER 3: FORM OF CONTRACTS Article 1356 Form of contract refers to the manner in which a contract is executed or manifested 1. Informal or common or simple contract 2. Formal or solemn contract Form for Validity of Contract 1. Donation of real property 2. Donation of real property the value which exceed P5,000 3. Sale of land through an agent 4. Stipulation to pay interest 5. Contract of Partnership Article 1358 Contracts which must appear in a public document 1. Creation of real rights over immovable property 2. Cession or renunciation of hereditary rights or those conjugal partnership of gains 3. Power to administer property 4. Cession of action or rights CHAPTER 6: RECISSIBLE CONTRACTS Article 1380 Rescissible Contracts are those validly agreed upon may be rescinded in the cases established by law Article 1381 Cases of rescissible contracts 1. Contracts entered into in behalf of wards 2. Contracts agreed upon in representation of absentees 3. Contracts undertaken in fraud of creditors 4. Contracts which refer to things under ligitation 5. Other instances Article 1384 Rescission shall be only to the extent necessary to cover the damages caused. Article 1387 All contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation
Ramos, Olivia Melissa P. 1 BSA - A Pamantasan ng Cabuyao Good day, Atty! With the help of your provided video here is the summary of my understanding regarding the lesson. Contracts are binding regardless of their form, as long as all of the necessary conditions for their legality are met. When the law requires a contract to be in a specific form to be legal or enforceable, or that a contract be proven in a certain way, that requirement is absolute and unavoidable. Once the contract has been finalized, if the law demands a document or other particular form, as in the actions and contracts listed in the following article, the contractual parties may compel each other to obey that form. This right can be utilized at the same time as the contract action. Rescissible contracts are those that, notwithstanding their flaws, are nevertheless deemed legitimate. This article also explains the rescission requirements. Rescissible contracts are divided into four categories. Contracts made on behalf of wards are the first. Second, if absentees are represented, contracts are agreed upon. Contracts made in the name of directors are the third type of contract. Finally, some contracts allude to matters that are now in dispute. If the payments are paid when the debtor is insolvent for obligations, the debtor cannot be compelled. Rescission is only available if there is no other legal remedy available. Even though the contract is rescissible, that does not necessarily indicate that rescission of contracts is the best option. When a court declares a contract repudiated, the parties shall render the deal's object, its conditions, and the price with legal interest. This article also contains instances when rescission is not permitted. Even if there is a lession or not, contracts carried into on behalf of absentees in war cannot be revoked if the court has recognized their validity. Alienation by superfluous or onerous title is a type of alienation that is inferred in creditor fraud. A purchaser acting in bad faith may be compensated if he is unable to return the item if the transaction is canceled for whatever reason. When there are two or more, the first should be held accountable first, followed by the second, third, and the following. A claim for rescission must be filed within four years of the date the contract was signed. Thank you and stay safe, Atty.
Danica Leene Gabarda 1BSA-A Pamantasan ng Cabuyao Good day Atty. Reyes! These are my takeaways in your discussion. Chapter 3: Forms of contract Article 1356 discusses the forms of contracts which is referred to as the manner in which a contract is executed or manifested. Article 1357 states that the law may require a certain form for the convenience of the oarties in ordee to make effective as against third persons. Article 1358 discusses the things that must aplear in a public document Chapter 6: Rescissible Contracts Article 1380 states that contracts that are validly agreed upon may be rescinded in the cases established by law. Article 1381 discussea the types of Rescssible contracts and the requisites of rescission of contracts undertaken in fraud of creditors. Article 1382 states that payment made in the state of insolvency for obligation to whose fulfillment, the debtor could not be compelled at the time they were affected, are also rescissible. Article 1383 states that if the party suffering damage has no other legal means to obtain reparation, then action for rescission is used. It is because action for rescission is subsidiary. Article 1384 states that rescission shall be only to the extent necessary to cover damages cause. Article 1385 discusses the effects of rescission. Article 1386 states that in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not. Article 1387 discusses about the alienatioms presumed in fraud of creditors which is the alienation by gratuitous title and alienation by onerous title. Article 1388 states that whoever acquires in bad faith the things in fraud of creditors shall indemnify the latter for the damages suffered by them on account of the alienations. Article 1389 states thtat the action to claim rescission must be commenced within 4 years.
Cepe, Alyanna Pamantasan ng Cabuyao 1 BSA-B Here are my takeaways in this video: Chapter 2 Form of Contracts introduced the form of a contract and I learned that there are rules regarding this. Also, I learned that contracts are binding and enforceable to both parties whatever form it is and it should have the three essential requisites to be valid. There are exceptions in form of a contract along with different forms of contract with its form for validity which are either public instrument or writing. As of Art. 1358, there are things that must appear in a public document and in writing. I also learned where a contract must be registered. On Chapter 6 involving rescissible contracts, I realized that it is a contact that is validly agreed upon because all essential elements exist there is a remedy of recission granted for both parties while recission is a remedy granted by law in restoring things with the same condition before the celebration of a contract. I also knew that requisites of recission and the types of rescissible contracts. I also knew the requisites of rescission of contracts undertaken in fraud of creditors and there are other instances that contracts are rescissible. Another thing that I have learned is that it could not be compelled if the payment made is in insolvency and it should be declared. Also, rescission is only subsidiary which means that it can be availed when proven that the purpose is rescinding and there is no other legal means. According to Art. 1384, rescission is only to the extent of creditor’s unsatisfied credit. The entire contract is not set aside if damage can be repaired by partial rescission because law intended to preserve the contract, not to extinguish it. Lastly, added to my knowledge are rules when recission is not allowed, circumstances denominated as badges of fraud, and the claiming rescission must start within four years from the date of entering the contract. That is all what I have learned in this video. Thank you,
Malayo, Christine B. 1BSA-A Pamantasan ng Cabuyao Good day Atty. After watching your video lecture and reading the book here are my takeaways: Article 1356 refers to contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised. Article 1357 stated that if the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. Article 1358 clearly stated that the following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding from an act appearing in a public document. Article 1359 stated that when, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed. Article 1360 refers to the principles of the general law on the reformation of instruments are hereby adopted insofar as they are not conflict with the provisions of this Code. Article 1361 stated that when a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed. Article 1362 expressed that if one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. Article 1363, on this article, when one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed. Article 1364 stated that when through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed. In Article 1365, if two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper. Article 1366, there shall be no reformation on simple donations inter vivos wherein no condition is imposed, wills and when the real agreement is void. Article 1367, when one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation. Article 1368 expressed that reformation may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns. Article 1369 stated that the procedure for the reformation of instruments shall be governed by rules of court to be promulgated by the Supreme Court. Article 1370 affirmed that if the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former. Article 1371 stated that in order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered. Article 1372 refers to however general the terms of a contract may be, they shall not be understood to comprehend things that are distinct and cases that are different from those upon which the parties intended to agree. Article 1373 refers to the interpretation of contracts, if the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control. Article 1374 expressed that the various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly. Article 1375 refers to words which may have different significations shall be understood in that which is most inkeeping with the nature and object of the contract. Article 1376 stated that usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of the stipulations which are ordinarily established. Article 1377 expressed that the interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity. Article 1378 clearly stated that when it is absolutely impossible to settle doubts by the rules established in the preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the least transmission of rights and interests shall prevail. Article 1379, The principles of interpretation stated in Rule 123 of the Rules of Court shall likewise be observed in the construction of contracts. Article 1380, Contracts validly agreed upon may be rescinded in the cases established by law. Article 1381 refers to contracts entered into behalf of wards- a ward is a person under guardianship by reason of some incapacity. As a rule, the powers of the guardian with respect to the property of the ward are limited to mere acts of administration. Under Article 1382, if one party is unable to pay debts owed, the injured party can rescind the contract. In this situation, the injured party can demand reimbursement of damages from the person or persons who caused the loss. Article 1383, the action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. Article 1384 defined those situations where one person is liable for injuries caused by another (e.g., by one's child, employer or pupil). Article 1385 stated that the rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore. Article 1386 refers to rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts. Article 1387 stated that all contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation. Article 1388 clearly stated that if there are two or more alienations, the first acquirer shall be liable first, and so on successively. Article 1389 expressed that the the action to claim rescission must be commenced within four years. For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former’s incapacity, or until the domicile of the latter is known. Thank you Atty.
Gonzales, Karl Wilson M. 1 BSA - A Pamantasan ng Cabuyao Good day, Attorney. Here are my key takeaways for this video: I have learned that a form of contract refers to the manner in which a contract is executed or manifested. There are also a general rule regarding this: Contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present except when the law requires. The law may also require a certain form for the convenience of the parties in order to make effective, as against third persons and the special form is also indispensable. Article 1358 states that the ff should appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, etc.; (2) Session, reputation or renunciation of rights; (3) The power to administer property or any other power. Sale or transfer of large cattle or chattel mortgage type of contracts must also be registered. Under Article 1380, rescissible contracts are those that are validly agreed upon because all essential elements exist therefore is legally effective. Rescission is a remedy granted by law to secure reparation of damages. There are different types of rescissible contracts: (1) Entered into in behalf of wards; (2) Agreed upon in presentation of absentees; (3) Undertaken in fraud of creditors; (4) Refers to thing under litigation. Other instances where contracts are rescissible: (1) Partition, (2) If the lessor or lessee should not comply with their obligations; (3) Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible. It is also said that rescission is only subsidiary even if the contract is considered rescissible. Rescission shall also be only to the extent necessary to cover the damages caused, and there should be no obligation to restore if nothing has been received. Rescission is also not allowed when the party who demands rescission cannot return what he is obliged to, and if the property is in legal possession of a third person who acted in good faith. Alienations presumed in fraud of creditors: (1) Alienation by gratitude title; (2) Alienation by onerous title. Under Article 1388, it is stated that the purchaser that is in bad faith must return the same if the sale is rescinded and if impossible, he must indemnify the former. If there are two or more, the first shall be liable, and so on, successively. There is also a general rule under Article 1389 that states: The action to claim rescission must be commenced within four years from the date the contract was entered into. Lastly, the injured party or defrauded creditors - his heirs/assigns or successors, or the creditors entitled to subrogation is entitled to bring action. Thank you, atty!
Misa, Jannah Aliah 1BSA-A Pamantasan ng Cabuyao Good day, Atty! Here are my key takeaways from this video. Form of a contract refers to the manner in which a contract is executed or manifested (Article 1356). As a general rule, contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present except when the law requires that a contract be in some form to be valid, to be enforceable or proved in a certain way, and to be in some form for the convenience of the parties of for the purpose affecting third persons. Under Article 1357, the law may require a certain form of the convenience of the parties in order to make effective, as against third persons. Article 1358 states what are the things that must appear in a public document. All other contracts where amount involved exceeds 500 pesos must appear in writing, even private one. Sale or transfer of large cattle and chattel mortgage are the contracts that must be registered. Article 1380 provides that rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescession is granted in the interest of equity. It is defective but a valid contract. On the other hand, rescession means a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. The requisites of rescession are also discussed under this article. Types of rescissible contracts are tackled under article 1381. Those are contracts enters into behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and contracts which refer to things under litigation. The requisites of rescission of contracts undertake in fraud of creditors are as follow: 1. There must be an existing credit prior to rescssion, though it is not yet due or demandable. 2. There must be fraud on part of debtor. 3. Creditor cannot recover his credit, not being required that debtor is insolvent. Other instances where contracts are rescissible are also discussed in this article. Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. It must be judicially declared if the debtor is insolvent. Article 1382 provides that rescission is only subsidiary meaning it comes next after the primary remedy. It can only be availed when proved that there is no other legal means aside from rescinding, even if the contract is considered rescissible because there are still other remedies. If the damage is repaired, rescission cannot take place. Under article 1384, rescission is only to the extent of creditor's unsatisfied credit. Its effect is the contract need not to be set aside if damage can be repaired or covered by partial rescission. For the reason that the law is to preserve or respect the contract, not to extinguish it. Effect of rescission is, there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Rescission is not allowed if the party who demands rescission cannot return what he is obliged to and of the property is legally in possession of a third person who acted in good faith. In contracts entered into in behalf of wards or absentees, rescission cannot take place when the court approved its validity, even there is lesion or not (Article 1386). This is because the law presumes that court acts in the interest of the ward or absentee. Article 1387 provides the alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also mentioned. Article 1388 states that the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. As a general rule as stated in article 1389, the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent. That's all. Thank you, Atty!
Gento, Janella Ann M. 1BSA-B Form of contract refers to the manner in which a contract is executed or manifested. There is General Rules that contracts is valid and enforceable as long the three (3) essential requisites are existing but there are also exceptions, when the law requires that a contract be in some form, when law requires that a contract be proved in a certain way and when law requires that a contract be in some form for the convenience of the parties or third parties. There are forms for Validity wherein Donation of Real property must be in public document, donation of personal property exceeding the amount of P5,000 must be in writing, sales of land through representative must also be in writing, stipulation to pay interest must be in writing and contract of partnership must be in public instrument meaning it must be duly notarized. Article 1357 states that you can file a complaint to enforce the contract and at the same time reduce the contract into its proper form. Both the action to enforce the contract and to compel or to order the other party to observe for the proper formalities required by law are both allowed. Article 1380 s about rescissible contracts although defected but because the requisites of contracts exist they are valid and enforceable but the law gives the aggrieved party the remedy of rescission in the interest of equity and fairness. Rescission is a remedy granted by law to the contracting parties or sometimes to third persons. Requisites of Rescission are contract must be validly agreed upon, there must be lesion or prejudice to one of the parties, must be based upon a case, there must be no other legal remedy because if there is then rescission will not take place, the one asking for rescission must be able to return what he is obliged, object must not be in possession of third person who did not act in bad faith, and filing the action for rescission must not have prescribed. There are types of rescissible contracts, one where entered by guardian in behalf of wards, two is agreed upon in representation of absentees, third is undertaken in fraud of creditors, and last is to things under litigation. There are also requisites for Fraud of creditors or known as Fraudulent Alienation of Property by the Debtor. One is there must be an existing debt, there must be fraud on the part of the debtor, and creditor cannot recover his credit. Rescission shall only be to extent of the creditor’s unsatisfied credit. If there is rescission that will take place, rescission creates the obligation to return the things which were the object off the contract with their fruits and price of interest but there are exception, if the party who demands rescission cannot return what he is oblige to restore under the contract and if the property is legally in the possession of a third person who acted in good faith. Mentioned also the circumstances denominated as badge of fraud. One is the fact that the consideration of the conveyance is fictitious or inadequate, two is transfer made by a debtor after suit, sale upon credit by an insolvent debtor, transfer of all of his property by a debtor, especially when he is insolvent or greatly embarrassed financially, the transfer is made between father and son, failure of the vendee to take exclusive possession of all the property, was known to the vendee that the vendor had no properties other than sold to him. The action to claim rescission must be commenced within four (4) years from the date the contract was entered into except under guardianship and for absentees. Here is the summary of what I’ve learned. Thank you, Atty.
Vapor, Jan Avriel R. 1BSA - B Pamantasan ng Cabuyao Good evening, Atty! Here are my notes & summary from this video: Art. 1356 - general rule: contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present except when the law requires that a contract be in some form to be valid, to be enforceable or proved in a certain way, and to be in some form for the convenience of the parties of for the purpose affecting third persons; form of a contract refers to the manner in which a contract is executed or manifested. Art. 1357 - law may require a certain form for the convenience of the parties in order to make effective, as against third person. This also allow both the action to compel or to order the other party to observe proper formalities required by law. Art. 1358 - All contracts where amount involved exceed five hundred pesos must appear in writing even private one. Art. 1380 - rescissible contracts : those validly agreed-upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Moreover it discuss here there meaning of rescission. It is a remedy granted by law in order to secure the reparation of damages. Art. 1381 - Types of rescissible contracts. These contracts enters into behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and contracts which refer to things under litigation. The requisites of rescission of contracts undertake in fraud of creditors are as follow: 1. There must be an existing credit prior to rescission, though it is not yet due or demandable. 2. There must be fraud on part of debtor. 3. Creditor cannot recover his credit, not being required that debtor is insolvent. Other instances where contracts are rescissible are also discussed in this article. Art. 1382 - Payments made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled. Art.1383 - rescission is only subsidiary which means contract can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by article 1381. Art. 1385 - the effect of rescission there is no obligation to restore if nothing has been received when the court declares a contract rescinded. A contract rescinded the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Art. 1386 - in contracts entered into behalf of ward or absentee precision cannot take place when the court approved its validity even there is lesion or not. Art.1387 - provides the alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also mentioned. Art. 1388 - there are two or more first shall be liable and so on successively. Art. 1389 - General Rule: the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent.
Ranegel Anne R. Miranda PNC 1 BSA - B Hello Atty. here are my takeaways for this video lecture. I have learned about the forms of contracts and rescissible contracts. Article 1356 is about the form of contract which refers to the manner in which a contract is executed or manifested. The general rule is that contracts are binding and therefore, enforceavle reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. Exceptions are the law requires that a contract be in some form to be valid, the law requires that a contract be in some form to be enforceable or provided in a certain way, and the law requires that a contract be in some form for the convenience of the parties or for the purpose of affecting third persons. In Article 1357, the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. The special form is not indispensable since they are allowed by the law to compel the other to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract. Under Article 1358, the following must appear in a public document: 1.) Acts and contracts which have for their object, the creation, transmission, notification or extinguishment or real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2 and 1405, 2.) The session, reputation, or renunciation of here with rights or of those of conjugal partnership of gains, 3.) The power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should appear in a public document, or should prejudice a third person, and 4.) The cession of actions of rights proceeding from an act appear in a public document. In this article, all other contracts where amount involved exceeds Five hundreer pesos (Php 500.00) must appear in writing even in the private one. The contracts that must be registered are sale or transfer or large cattle and chattel mortgage. In Article 1380, rescissible contracts are those validky agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Rescission is a remedy secured by law in order to secure reparation of damages, by means of restoration of things to their same condition, prior to thr celebration of said contract. Under this artile is also the requisites of rescission. Under Article 1381 is the types of rescissible contracts: 1. Contracts entered into in behalf or wards, 2. Contracts agreed upon in representation if absentees, 3. Contracts undertaken in fraud of creditors, and 4. Contracts which refer to things under litigation. Also under this article is the requisites of rescission of contracts undertaken in fraud of creditors and the other instances where contracts are rescissible. In Article 1382, payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. When a debtor is insolvent, it is must be judically declared. In Article 1383, rescission is only subsidiary, it means that rescission can be availed only when proved that there is no other legal means aside from rescinding. Remembering that if the damage is repaired, then rescission cannot take place. In Article 1384, the extent for rescission is only to the extent of creditor's unsatisfied credit. The effect is that the entire contract need not to be set aside if damage can be repaired or covered by partial rescission. The reason is that the law is to preserve or respect the contract, not to extinguish it. In Article 1385, the effect of rescission is there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Also in this article is the different circumstances wherein rescission is not allowed: 1. If the party who demands rescission cannot return what he is obliged to and 2. If the property is legally in possession of a third person who acted in good faith. Under Article 1386, in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not, it is because the law presumes that court acts in the interest of the ward or absentee. Under Article 1387, alienations presumed in fraud of creditors: 1. Alienation by gratuitous title and 2. Alienation by onerous title. Also under this article is the difference circumstances denominated as badges of fraud. In Article 1388, the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. When there are two or more, first shall be liable first, and so on, successively. The general rule in Article 1389 is that the action to claim rescission must be commenced within four (4) years from the date the contract was entered into. EXCEPTIONS: 1. If a person is under guardianship then the beginning period is when the termination of incapacity and 2. If the person is an absentee then the beginning period is when the domicile is known. Also under this article are the list of persons entitled to bring action: 1. The injured party or the defrauded creditor, 2. His heirs, assigns, or successors in interest and 3. The creditors of the above entitled to subrogation. Thank you atty.
Camposano, Ayumi H. 1 BSA B Pamantasan ng Cabuyao Good day, Sir. Here are my key takeaways after watching the video. Chapter 2: Forms of Contracts •Article 1356 Forms of Contract -refers to the manner in which a contract is executed or manifested. -A general rule in this provision is that contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. -This article also states that a contract is required to be executed in a certain form to be valid. •Article 1357 - The law may require a certain form for the convenience of the parties in order to make effective, as against third parties. •Article 1358 This article discusses the things that must appear in a public document such as: 1) Acts and contracts which have for their object, the creation, transmission,notificationor extinguishment of real rights over immovable property, sales of real property of an interest therein is governed by Art. 1403,No. 2 and 1405. 2) The session, reputation or renunciation of here with rights or of those conjugal partnership of gains. 3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person. 4) The cession of actions of rights proceedings from an act appear in a public document. • Contract of sale and Chattle mortgage must be registered. •Chapter 6 : Recissible Contract Article 1380 •Rescissible Contracts - Kind of contract which is validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interestof equity. -It is a valid contract even if it is defective. However, because of the interest of equity then the agreed party is granted the remedy of rescission. -A Rescissible Contract also means that there is economic damage to the other party. •Rescission - Remedy granted by law in order to secure reparation of damages. •Article 1381 This article stated the types of rescissible contracts which are: 1. Contracts entered into behalf of wards. 2. Contracts agreed upon in representation of absentees. 3. Contracts undertaken in fraud of creditors. 4. Contracts which refres to things under litigation. -This article also stated the other instances where contracts are rescissible which are: 1. Partition 2. If the lessor or lessee should not comply with their obligations. 3. The vendee may rescind when the real estate sold is less than or exceeds one tenth of the agreed price. •Article 1382 This article is an important provision wherein it states taht payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. •Article 1383 Rescission is only subsidiary, wherein it can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by article 1381. -It is only available when there is no legal means. -This article also tells that if the damage is repaired, rescission cannot tke place. •Article 1384 This article states the extent, effect and reason of rescission. Wherein its extent is only up to the extent of creditor's unsatisfied credit. Its effect covers the entire contract need not be set aside if damage can repaired or covered by partial rescission. And laslty its reason was that the Lw is to preserve or respect the contract, not to extinguish it. •Article 1385 Effect of rescission -It stated that when the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. •Article 1386 -This article stated that in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not. •Article 1387 This article discusses about the alienations presumed in fraud of creditors which are : Alienation by gratuitous title and Alienation by onerous title. •Article 1388 states that when the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify teh former. When there are two or more, first shall be liable first, and so on. •Article 1389 General rule: The action to claim rescission must be commenced within four years from the date the contract was entered into.
Aggabao, Princess Joy B. 1BSA-A PNC Good day Atty. here are my takeaways after reading the book and watching your video lecture. Chapter 3 talks about the forms of contract which can be formal(required by the law to be in some manner where a contract is manifested a executed) and informal (can be executed in any whatever forms may it be oral, written or partly oral and partly written). Forms refers to the manner in which a contract is manifested and executed. General Rule is that forms in a contract is not required as long as it contains all the essential requisites COC except for the purpose of validity, enforceability and convenience. - (Art 1356) The right to compel the other party to execute the necessary form applies only if the form is needed for the convenience and contract is valid and enforceable. - (Art 1357) The following must appear in a public document; creation, transmission, modification, or extinguishment of real rights over immovable property, renunciation of hereditary rights, authority to administer or manage property, cession of rights and any other contracts where the amount involved is five hundred pesos above. - (Art 1358) Chapter 6 talks about the rescission/cancellation of contracts, they are valid, however, because of some economic injury or damage caused to the aggrieved party it is a granted remedy for the latter. The purpose of this is the secure reparation of damages caused to them by a valid contract. - (Art 1380) These are the some of the contacts that are rescissible; Contract is entered into on behalf of the ward and representation of the absentee, things under litigations, other contracts especially declared by the law. - (Art 1381) When debtors suffer insolvency and obligation is not yet due and demandable, payment made in advance can be rescinded. - (Art 1382) Rescission is the the principal remedy, it takes place only when the damages has no other legal means to obtain reparation. - (Art 1383) Aside from the facts that rescssion is just subsidiary, the extent of rescission will not entirely rescind the contract. - (Art 1384) General rule in mutual restitution, the party who demanded rescission must be able to return what he has received by virtue of that contract except the object/thing is in the possession of the 3rd person who acted in good faith. The only remedy is to indemnity for damages. - (Art 1385) Defense to avoid rescission of the contract takes place because the contract is valid whether there is lession or not. - (Art 1386) Presumption of fraud in case of gratuitous alienation because the debtor did not reserved sufficient property to pay all his debts contracted before the donation. Second is the onerous alienation where after the writ of attachment the debtor still sell that thing. Any creditors may file for the rescission after the presumption of fraud by onerous alienation. - (Art 1387) Effect of bad faith object must be returned if cannot be returned, the latter should indemnify for damages. - (Art 1388) From the date of fraudulent action there is 4 years given to file for an action/rescission. - (Art 1389) That's all thank you.
Pedrigosa, Patricia Jhoana R. 1BSA-B Good day Atty. These are my takeaways from this video lecture: Article 1356 define a form of contract that refers to the manner in which a contract is executed or manifested. Article 1357 says that the law may require a certain form for the convenience of the parties in order to make effective against third persons. Article 1358 tackle about the contract that must be registered are: 1. Sale or transfer of large cattle 2. Chattel mortgage Article 1380 defines rescissible contract or those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Article 1381 provides the 4 types rescissible contract: 1. Contracts entered into in behalf of wards 2. Contracts agreed upon in representation if absentees 3. Contracts undertaken in fraud of creditors 4. Contracts which refer to things under litigation. Article 1382 says that the payments made in a state of insolvency for obligation to whose fulfillment the could not be compelled. Article 1383 says that the rescission as are you remedy is only a subsidiary remedy. Article 1385 says that rescission is not allowed if the party who demands rescission cannot return what he is obliged to, if the property is legally in possession of a third person who acted in good faith. Article 1386 says that in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approve its validity, even there is lesion or not. Article 1387 provides the circumstances denominated as badges of fraud. Article 1388 says that the purchases in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, famous indemnify former. Article 1389 has the general rule of "the action to claim rescission must be commenced with four years from the date the contract was entered into". -------------- Thank you atty. :)
Meriño, Leann Rain E. 1BSA-A Pamantasan ng Cabuyao Good day, Attorney! Here are my takeaways from your video lecture. Chapter 2. FORM OF CONTRACTS (Article 1356) Talks the form of contract. It is a manner in which a contract is executed or manifested. As a general rule, contracts are binding and are not required to be reduced in a certain form but there are exceptions to be considered. (Article 1357) Stated that a law may require a certain form for the convenience of the parties to make it effective, as against third persons. Since the special form is not indispensable, they are allowed by law to compel the other to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract. (Article 1358) In a public document, there are some of the things that must appear in it. Chapter 6: RESCISSIBLE CONTRACTS (Article 1380) About rescissible contracts which is a valid contract, although defective, because it gives the aggrieved party the remedy of rescission. Requisites of rescission are also stated in this article. (Article 1381) There are four types of rescissible contracts. Four types of rescissible contracts: are contracts entered into on behalf of wards; contracts agreed upon in representation of absentees; contracts undertaken in fraud of directors; and lastly, contracts that refer to things under litigation. (Article 1382) When a payment is made in a state of insolvency for an obligation to whose fulfillment the debtor could not be compelled. (Article 1383) Rescission is only a subsidiary. It means it can be availed only when proved that there are no other legal means aside from rescinding. (Article 1384) Extent is only up to the extent of creditors' unsatisfied credit. Rescission is only up to the extent necessary in order to satisfy the creditors' claim not the entirety of the payment. The reason for rescission is to preserve the contract and not to extinguish it. (Article 1385) talks about the obligation of the parties upon complete rescission. There is no obligation to restore if nothing has been received. It also states the circumstances where rescission is not allowed. (Article 1386) In contracts entered on behalf of the ward or absentee, precision cannot take place when the court approved its validity even there is a lesion or not because it is presumed that the court acts in the interest of the ward or absentees. (Article 1387) Alienations presumed in fraud of creditors: (1) alienation by gratuitous title; and (2) alienation by onerous title. This article also states the circumstances denominated as badges of fraud. (Article 1388) The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it due to any cost, he must indemnify the former. And when there are two or more, first shall be liable and so on successively. (Article 1389) GENERAL RULE: The action to claim rescission must be commenced within four years from the date the contract was entered into. EXCEPTION: When the person is under guardianship where the beginning period is the termination of incapacity, and when the person is an absentee where the beginning period is when the domicile is known. Thank you, Atty!
Nofies, Gretchen M. 1BSA-A PNC Good day Atty! Here are my takeaways after reading the book and watching your video lecture: Chapter 2. FORM OF CONTRACTS Article 1356 - A form of contract refer to the manner in which a contract is executed or manifested. The contract maybe oral or in writing or party oral and party in writing. As a general rule of contract are binding and therefore, enforceable reciprocally by the contracting parties whatever may be the form in which the contract has been entered into. Article 1357. It is stated here that a law may require a certain form for the convenience of the parties in order to make it effective, as against third persons. Since the special form is not indispensable, they are allowed by law to compel the other to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract. Article 1358. This article covers the things that should appear in a public document. 1. Contract entered into a behalf of wards 2. Contract agreed upon in representation of absentees. 3. Contract undertaken in fraud if creditor. 4. Contract which refers to things under litigation. Chapter 4: Reformations of Instruments Article 1359- Reformation is the remedy allowed by law by means of which a written instrument is amended or rectified so as to express or conform to the real agreement or intention of the parties when by reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express such agreement or intention. Article 1360-The principle of the general law on the reformation of instruments are hereby adopted. In case of conflict between the provisions of the New Civil Code and the principles of the general law on reformation, the former prevails. Article 1361-There are disclose real agreement said instrumental may be reformed. Mutual mistake is mistake of fact that is common to both parties of the instrument which causes the failure of the instrument to express their true intentions. Article 1362- The right to ask for reformation is granted only to the party who was mistaken in good faith. Article 1363- Remedy of reformation may be availed of the party who acted in good faith. The concealment mistake by the other party constitute fraud. Article 1364- Neither party is responsible for the mistake. Hence, either party may ask for reformation. Article 1365- The reformation of the instrument is proper: otherwise, the true intention of the parties would be frustrated. Article 1366- There shall be no reformation on the following cases: 1. Simple donations inter vivos wherein no condition is imposed 2. Wills 3. When the real agreement is void. Article 1367- The party who brings an action to enforce contract cannot subsequently ask for its reformation. Article 1368- These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled. Article 1369- Rules of court shall govern procedures for the reformation of instruments. Chapter 5: Interpretation of Contracts Article 1370- If the word appear to be contrary to the evident of the parties the latter shall prevail over the former. Article 1371- In order to judge the intention of the contracting parties their contemporaneous and subsequent acts shall be principally considered. Article 1372- However general the terms of a contracts may be they shall not be understood to comprehend things that are distinct and cases that are different from those upon which parties intended to agree. Article 1373- When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation. Article 1374- A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instruments and not from particular words, phrases, or clauses. Article 1375- Words which may have different signification shall be understood in that which is most in keeping with the nature and objects of the contracts Article 1376- The usage or custom of the place shall be borne in the mind interpretation of the ambiguities of the contracts , and shall fill the omission of stipulation which are ordinarily established. Article 1377- Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity. Article 1378- If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules. Article 1379- The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts. Chapter 6: Rescissible Contracts Article 1380- Rescissible contracts is about those validly agreed upon because all essential elements exist therefore legally effective but the remedy of rescission is granted in the interest of equity while RESCISSION itself is a remedy granted by law to secure the reparation of damages, by means of restoration of things in their same condition prior to the celebration of said contract.
Article 1381- Types of Rescissible Contracts: contract entered into on behalf of ward; contracts agreed upon in representation if absentees; contracts undertaken in fraud of creditors; contracts which refer to things under litigation. Partition means any of the co-heirs received things valued at least one-fourth than the share he is entitled. Article 1382- When a payment is made in a state of insolvency for obligations to whose fulfillment, the debtor could not be compelled. Article 1383- Rescission is only subsidiary. It means it can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Article 1381. It is also noted that if damage is repaired, rescission cannot take place. Article 1384- The entire contract need not be set aside by rescission if the damage can be repaired or covered by partial rescission. Article 1385- The purpose of rescission is to restore the parties to their original situation. Article 1386- If contract entered into on behalf of a ward or absentee has been approved by the court, rescission cannot take place because it is valid whether there is lesion or not. Article 1387. The circumstances denominated as badges of fraud: the consideration of conveyance is fictitious or inadequate; a transfer made by a debtor after suit has begun and is pending against him; a sale upon credit by an insolvent debtor; the transfer of all of his property by a debtor when he is insolvent or greatly embarrassed financially; the transfer is made between father and son when there are present some or any of the above circumstances; the failure of the vendee to take exclusive possession of all the property; and it was known to the vendee that the vendor had no property other than that sold. Article 1388- The purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded and if impossible, he must indemnify the former. Article 1389- The action to claim rescission must be commenced within four years. Thank youu!
Fernandez, Patricia Jainah M. 1BSA-A Good Day, Atty. I would like to thank you for uploading videos that helps us learn and get to know more the Law on Obligations and contracts that would help us for building the knowledge in the time the students you teach would face the world and become successful CPAs. Forms of Contracts Article 1356: Contract is considered in written form. A contracts partly in writing and partly oral, is in legal effect, an oral contract. It is binding and therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into provided all the three essential requisites for their validity are present. Article 1357: A certain form is required for the convenience of the parties in order that the contract may be registered in the proper registry to make effective as against third person. Article 1358: The contracts are valid and enforceable though not embodied in a public document or writing or in instrument. The law does not require accomplishment of certain acts or contracts in a public instrument in order to validate the act or contract but only to insure its efficacy so that after the existence of the act or contract has been admitted or established, the party bound may be compelled to execute the document. Rescissible Contracts Article 1380: Rescissible contracts are those that are properly agreed upon since all of the essential elements exist and are thus legally effective, but the remedy of rescission is provided in the interest of equity in the cases established by law. Rescission is an equitable remedy allowed by law to contracting parties and, in some cases, third parties in order to collect restitution for damages caused by a legal contract by restoring things to their pre-contractual condition. Article 1381: The subsidiary action for rescission is limited to the rescissible contracts under Article 1381. There are kinds of rescissible contracts: contracts entered into in behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refers to things under ligation and other instances. Article 1382: The current article refers to "payments," rather than a contract. If a debtor lacks sufficient assets to satisfy his debts, he is said to be insolvent. It is not essential for the debtor's insolvency to be proclaimed judicially. Payments must have been made “for obligations to which the debtor could not be compelled to fulfill at the time they were effected.” Article 1383: Article 1383 revocation is not a principal remedy. It is only supplemental and can be used only if the aggrieved party can demonstrate that he has exhausted all other legal options, including rescinding the contract, to achieve satisfaction for his claim or reparation for the damage caused, even if the contract is covered by Article 1381. Article 1384: The entire contract need not be set aside by rescission if the damage can be repaired or covered by partial rescission. The rescission shall only be to the extent of the creditor’s unsatisfied credit. The reason is the law is to preserve or respect the contract, not to extinguish it. Article 1385: The aim of rescission is to put the parties back in their original position. The law presumes that the party who acquired the contract's object has enjoyed its fruits, whilst the other has spent the money that represents the item's price. In terms of the fruits, the norms of possession apply. Rescission is not allowed when the party who demands it cannot return what he is obliged to restore under the contract and if the property is legally in the possession of a third person who acted in good faith. Article 1386: Rescission cannot occur if a contract entered into on behalf of a ward or absentee has been allowed by the court since it is legitimate whether there is lesion or not. When the court confirms the contract despite the lesion, the law presumes that the court is working in the best interests of the ward or absentee. Article 1387: This provision creates a prima facie presumption of fraud in the context of the debtor's alienation of his property. However, the examples given are not exclusive of those that can be proven in any other way authorized by evidence law: a. )Alienation by gratuitous title and b.) Alienation by onerous title. Article 1388: If the sale is withdrawn, the purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors must return it, and if he is unable to return it owing to whatever reason, he must indemnify the former. If there are two or more alienations, the first acquirer is accountable first, and so on. Article 1389: Contract rescinding actions must be filed within four (4) years of the date the contract was signed. The exceptions are: 1. For persons under guardianship, the period shall begin from the termination of incapacity; and 2. For absentees, from the time the domicile is known. The action for rescission may be brought by: 1. the injured party or the defrauded creditor; 2. his heirs, assigns, or successors in interest; or 3. the creditors of the above entitled to subrogation (accion subrogatoria).
Agdefa, Cristine Bernadette Y. 1BSA-B Good day, Atty.! These are my takeaways. The first article refers to the manner in which a contract is executed or displayed is referred to as its form. Contracts are generally binding and thus enforced reciprocally by the contracting parties, regardless of the form in which they are entered into, as long as all three necessary requisites for their validity are met. Article 1357 states that the law may demand a certain form for the parties' convenience in order for it to be effective against third parties and article 1358 pertains to the information that must be included in a public document. In addition, all other contracts worth more than P500, even private ones, must be in writing. Moving on to the chapter 3 or the rescissible contracts. Article 1382 defined the it as ones that are legally binding since all essential parts are present, but the right to rescission is granted in the interest of equity. Rescission, on the other hand, is a legal remedy for securing damages by restoring things to their original state prior to the contract's fulfillment and the next article gives the types of the rescissible contracts. According to article 1382, payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. The next article states that rescission is a subsidiary remedy, meaning it can only be used if it can be demonstrated that there are no other legal options. Furthermore, rescission is not possible if the damage is remedied. As to the extent, rescission is only to the extent of the creditor's unsatisfied credit. Its effect is that the entire contract need not be set aside if damage can be repaired or covered by partial rescission, the reason is that the law is to preserve or respect the contract, not to extinguish it, this is in accordance to article 1384. If the party who demands rescission cannot return what he is obliged to and if the property is legally in possession of a third person who acted in good faith, then rescission is not allowed according to art. 1385. Similarly, according to article 1386, rescission cannot take place when the court approved its validity, even if there is lesion or not, in contracts entered into on behalf of ward or absentee. On the other hand, the alienation presumed in fraud of creditors are discussed in the following article which are alienation by gratuitous title and by onerous title. And, if the sale is rescinded, the person who made the bad faith purchase must return it, and if he is unable to do so for any reason, he must reimburse the person who made the good faith purchase. Lastly, article 1389 stated the general rule in which that the action to claim rescission must be commenced within four years from the date the contract was entered into. That’s all, Atty.! Thank you for this video lecture.
Francisco, Yvonne Lee R. 1 BSA-B Good day, Atty! Here are some of my notes from this video: Chapter 3: Forms of Contracts • Article 1356 talks about forms of contract. It refers to the manner in which a contract is executed or manifested. • Article 1357 - The law may require a certain form for the convenience of the parties in order to make effective, as against third persons. • Article 1358 is about contract that must appear in a public document. Chapter 6: Rescissible Contracts • Article 1380 speaks about rescissible contracts. Those validly agreed upon because all essential elements exist therefore legally effective, but remedy of rescission is granted in the interest of equity. • Article 1381 is about types of rescissible contracts. • Article 1382 - Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. • Article 1383 - Rescission is only subsidiary. It Can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art. 1381. • Article 1384 is about extent of rescission. • Article 1385 talks about the effect of rescission. There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. • Article 1386 - In contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not. • Article 1387 is about alienations presumed in fraud of creditors. • Article 1388 - The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. • Article 1389 - General rule: The action to claim rescission must be commenced within four (4) years from the date the contract was entered into. Thank you for this lecture, Atty!
Krisha Mae M. Navarro 1BSA-B PNC Good day, Atty. Narciso. Here are some key points that I learned upon seeing this video. CHAPTER 2: FORMS OF CONTRACTS - This chapter defines the form of contracts which refers to the manner in which a contract is executed or manifested. - Contracts are not required to be reduced in a certain form as to general rule except: A contract must be in some form to be valid under the law, must be in some form to be enforceable or proven in a certain way, according to the law, must be in some form for the convenience of the parties or to effect third parties, according to the law. - The law may need a certain form for the parties' convenience in order to be effective against third parties. They are not required to use the special form since they are permitted by law to compel the other party to use the proper form, and this right may be utilized concurrently with the action to enforce the contract. CHAPTER 6 - Talks about rescissible contracts which defines as validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. - Rescissible contracts are valid contracts that give the agreed party the right of rescission in the interest of justice and equality. - REQUISITES OF RESCISSION 1. The contract must be validly agreed upon. 2. There must be lesion or pecuniary prejudice to one of the parties or to a third person. 3. The rescission must be based upon a case especially provided by law. 4. There must be no longer legal remedy to obtain reparation for the damage. 5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract. 6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith. 7. The period for filing the action for rescission must not have prescribed. - Payments paid in an insolvent state for obligations that the debtor could not be forced to complete. - The action for rescission is a secondary action that can only be brought when the party who has been harmed has exhausted all other legal options for obtaining compensation. - RESCISSION'S Effect is, if nothing has been received, there is no responsibility to restore. When a court declares a contract void, the parties must return the deal's object, its fruits, and the money, plus lawful interest, to each other. - When a court has approved the validity of a contract entered into on behalf of a ward or in their absence, rescission is not possible, even if there is no lesion because the court is presumed to act in the best interests of the ward or absentee. - ALIENATIONS PRESUMED IN FRAUD OF CREDITORS: 1. Alienation by gratuitous title 2. Alienation by onerous title - A purchaser acting in bad faith must return the item if the sale is rescinded, and if he is unable to do so for any reason, he must compensate the seller. - The action to claim rescission must be commenced within four years from the date the contract was entered into. Thank you, Atty.
Camas, Ma. Joyce Susanfei M. 1 BSA-B Pamantasan ng Cabuyao Good Day, Atty. Thank you for providing this video. Below are my takeaways: Forms of Contract Article 1356 Form of contract-the manner in which a contract is accepted or manifested Rules regarding form of contracts General rule: contracts are binding and enforceable reciprocally by the contracting parties in whatever form that they may have been entered into provided that all the three essential requisites for their validity are present Exceptions: 1. The law requires that a contract be in some form to be valid 2. The law requires that a contract be in some form to be enforceable or proved in a certain way 3. The law requires that a contract be in some form for convenience of the parties or for the purpose of affecting third persons 1. Donation of real property- must be executed in a public instrument 2. Donation of personal property the value of which exceeds five thousand pesos - donation and the acceptance must be both in writing now 3. Sale of land through an agent- authority of the agent must be in writing otherwise the sale is void 4. Stipulation to pay interest- must be in writing 5. Contract of partnership-if an immovable is contributed then it must be in public instruments Formalities are required -may either be in a public instrument or in writing • Public instrument - agreement must be reduced to writing and it must be duty notarized by a notary public: o Donation of real property o Contract of partnership - immovable property is contributed it must be in a public instrument • Requires merely that the agreement must be reduced to writing o Donation of personal property the value of which exceeds 5000pesos o Sale of land through an agent o Stipulation to pay interest Article 1357 • The law may also require that a certain form for the convenience of the parties in order to make effective as against third persons • The special form is not an indispensable requirement since they are allowed by law to compel the other party to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract Article 1358 The following must appear in a public document 1. Acts and contracts which have for their object recreation transmission notification or extinguishment of real rights over an immovable property sale of real property, or an interest therein governed by articles 1403 number 2 and 1405 2. The session, reputation, or renunciation of here with rights or of those of conjugal partnership of gains 3. The power to administer property or any other power which has for its object an act appearing or which should appear in public document or should appear in a public document or prejudice a third person 4. Session of actions of rights proceeding from an act appearing in a public document 5. All the contracts where the amount exceeds 500 pesos must appear in writing even private one Contracts that must be registered: 1. Sale or transfer of large cattle 2. Chattel mortgage Defective contracts 1. Rescissible Contracts -validly agreed upon because all the essential elements exist therefore legally effective, but the remedy of rescission is granted in the interest of equity • Rescission - remedy granted by law in order to secure reparation of damages by means of restoration of things to their same condition prior to the celebration of the said contract Article 13 80 Requisites of rescission 1. The contract must be validly agreed upon 2. There must be a lesion or pecuniary prejudice to one of the parties or to a third person 3. The rescission must be based upon a case especially provided by law 4. There must be no other remedy to obtain reparation for the damage 5. The party asking for decision must be able to return what he is obliged to restore by reason of the contract 6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith 7. The period for filing the action for a session must not have prescribed Article 1381 Types of rescissible contracts 1. Contracts entered into on behalf of wards (persons who are under guardianship) 2. Contracts agreed upon in representation of absentees (persons who do not appear after sufficient lapse of period of time) 3. Contracts undertaken in fraud of creditors 4. Contracts which refer to things under litigation 5. Now first contracts entered into in Requisites of rescission of contracts undertaken in fraud of creditors 1. There must be an existing credit prior to recession though it is not yet due or demandable 2. There must be fraud on the part of the debtor (deceit may be presumed or proved) 3. Creditor cannot recover his credit, not being required that the debtor be insolvent Other instances where contracts are rescissible 1. Partition- when any of the co-heirs received things valued at least one-fourth than the share he is entitled 2. If the lessor or lessee should not comply with their obligations 3. Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price Article 1382 • Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled Any and all payments made by an insolvent debtor for obligations to whose fulfillment the Debtor could not be compelled then that payment becomes receivable • When a debtor is insolvent then there must be a judicial declaration to that effect Article 1383 • Rescission is only a subsidiary (remedy) Can be availed only when proved that there is no other legal remedy aside from recession now even if the contract is considered as rescissible under article 1381 Note: if the damage is repaired, rescission cannot take place Article 1384 • Extent- only up to the extent of creditors unsatisfied credit Rescission is only up to the extent necessary in order to satisfy the creditors claim not the entirety Of the payment • Effect -entire contract need not be set aside if damage can be repaired or recovered by partial rescission • Reason of precision-the law is to preserve or respect the contract and not to extinguish it Article 1385 Effect of rescission There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits And the price thereof with legal interest 1. The other party must return the object of the contract 2. The fruits of the object and the price thereof with legal interest When rescission is not allowed: 1. If the party who demands rescission cannot return what he is obliged to 2. If the property is legally in possession of a third person who acted in good faith Article 1385 In contracts entered into on behalf of ward or absentee precision cannot take place when the court approved its validity even if there is lesion or not Reason: the law presumes that the court acts in the interest of the ward or absentee Article 1387 Alienations presumed in fraud of creditors 1. Alienation by gratuitous title 2. Alienation by onerous title Circumstances denominated as badges of fraud (hallmarks of fraud) 1. The consideration of conveyance is fictitious or inadequate 2. A transfer made by a debtor after suit has begun and is pending against him 3. A sale upon credit by an insolvent debtor 4. The transfer of all his property by a debtor when he is insolvent or greatly embarrassed financially 5. The transfer is made between father and son when there are present some or any of the above circumstances 6. The failure of the vendee to take exclusive possession of all the property 7. It was known to the vendee that the vendor had no property other than that sold Article 1388 • The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it due to any cost, he must indemnify the former • When there are two or more then the first shall be liable and so on successively Article 13 89 The period in filing an action for position of contracts General rule: an action to claim recession must be commenced within 4 years from the date the contract was entered into Exceptions 1. The person is under guardianship then four years will commence to upon termination of incapacity So, for example the person under guardianship is a minor then the four-year period will only commence to run upon attaining the age of majority or the legal age 2. Absentee then if his domicile is known then the four-year period will commence to run Persons entitled to bring action 1. The injured party or the defrauded creditor 2. His heirs assigns or successors in interests 3. The creditors of the above entitled to subrogation
Roble, Ramilyn M. 1BSA-A Pamantasan ng Cabuyao Good day, Atty. Here is the summary of what I have learned from the video lecture. CHAPTER 3 - FORMS OF CONTRACTS Article 1356 - It talks about the forms of contract which refers to how a contract is executed. In enforcing a contract it should not be reduced or change the form in which the contract has been entered into first. However, there are exceptions: (1) it is when the law requires that a contract be in some form to be valid, (2) when the law requires that a contract be in some form to be enforceable or proved in a certain way, or (3) when the law requires that a contract be in some form for the convenience of the parties or to affect the third persons. Thus, there are certain contract that requires some form to be valid. Article 1357 - This states the third exception of requiring some form in a contract. It states that law requires a certain form against the third person for the convenience of the parties for the contract to be valid. Article 1358 - This tackles that contract which must be appear in public document. These are creation, transmission, modification, or extinguishment, of real rights over immovable property, cession, repudiation or renunciation of hereditary rights, power of administer property, cession of actions or rights proceeding from an act appearing in public document, and all other contracts with amount exceeding five hundred pesos must appear in writing, even a private one. CHAPTER 6 - RESCISSIBLE CONTRACTS Article 1380 - It talks about the rescissible contract, they are those validly agreed upon because all the essential elements exist, and, therefore, legally effective, but in cases established by law, the remedy of rescission is granted in the interest of equity. Rescission, however, is the remedy by law to secure reparation of damages, employing restoration of things to their same condition before the celebration of said contract. The following are requisites of rescission: (1) contract must be validly agreed upon, (2) there must be lesion or pecuniary prejudice to one of the parties or a third person, (3) must be based upon a case especially provided by law, (4) must be no other legal remedy to obtain reparation, (5) party asking for rescission must be able to return what he is obliged to restore, (6) the object must not legally be in the possession of the third person, and (7) period for filing the action for rescission must not have prescribed. Article 1381 - This discusses the types of rescissible contracts: (1) contracts entered into in behalf of wards, (2) agreed upon in representation of absentees, (3) undertaken in fraud of creditors, (4) under litigation, and (5) other instances like partition, the lessor or lessee does not comply with their obligation, or the vendee rescind when the real estate sold is less than or exceeds one-tenth of the agreed upon. Article 1382 - It speaks about the payments made in a state of insolvency being not compelled by the debtor for the fulfillment is also a rescissible contract. Article 1383 - It says that rescission is only subsidiary, it can only be availed when proved that there are no other legal means. However, if the damage has been repaired, rescission should not take place. Article 1384 - It states that rescission which said that there is no obligation if nothing had been received. And with that, a contract should not be set aside because the law preserves and respect the contract, not extinguish it. Article 1385 - This talks about the effect of rescission which it said that there is no obligation if nothing has been received. The court declares a contract rescinded the parties should return to each other the object and the price thereof with legal interest. However, rescission is not allowed if the party who demands rescissions cannot return what he is obliged to and if the property is legally in possession of a third person who acted in good faith. Article 1386 - This tackles the contract entered into in behalf of ward. It states that rescission is not allowed when the court approved its effectivity, even there is lesion or not. Article 1387 - This talks about the fraud in the act of creditors which presumed to be alienated. These are alienation by gratuitous title and alienation by onerous title. The circumstances denominated as badges of fraud are as follows: (1) the consideration of conveyance is fictitious or inadequate, (2) transfer made by a debtor after suit has begun and is pending against him, (3) sale upon credit by an insolvent debtor, (4) transfer of all of this property by a debtor, (5) transfer is made between father and son, (6) transfer is made exclusive possession of all property, and (7) it was know to the vendee that the vendor had no properties other than that sold to him. Article 1388 - The purchaser who acted in bad faith must return the same if the sale is rescinded and if it is impossible to return, he must indemnify the former. Article 1389 - It says that rescission must be commenced within 4 years from the date the contract was entered into excepts if the person is under guardianship, the period shall begin from the termination of incapacity and if the person is absentees, the period starts at the time when domicile is known. The person entitled to bring this action are the injured party, the heir, and the creditors of the above-entitled to subrogation. Thank you, Atty for the lecture.
Reyes, Zhellie Mae 1-BSA-A Good day Atty. Thank you for this lecture video. Here is what I have learned. The first part of the lecture video is all about forms of contract. Article 1356 provides that form of contracts refers to the manner in which a contract is executed or manifested. As a general rule, contracts are binding and enforceable reciprocally by the contracting parties regardless of what form of contract is it, as long as the three essential requisites are present, then they are valid and binding unless, the law requires that a contract be in some form to be valid and also be proved to be enforceable in a certain way and when the law requires that a contract be in some for the convenience of the parties. This corresponds to what Article 1357 states, whereas the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. Article 1356 provides the things that must appear in a public document such as sales of real property, cession, reputation or renounciation of here with rights, the power to administer property and the cession of actions of rights proceeding from an act appear in a public document. This just means that these forms of contracts must be notarized. CHAPTER 6: RESCISSIBLE CONTRACTS Article 1380 provides for the definition of rescissible contracts as those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Even if they are defective, it is still considered as a valid contract. It merely gives the parties the right for rescission. Rescission is a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. In addition to that, this article also provided the requisites of rescission which are: (1) The contract must be validly agreed upon. (2) There must be lesion to one of the parties or to a third person. (3) The rescission must be based upon a case especially provided by law. (4) There must be no other legal remedy. (5) The party asking for rescission must be able to return what he is obliged. (6) Object of contract must not legally be in the possession of the third person who acted in good faith. (7) The period for filing the action must not have prescribed. Article 1381 gives the types of rescissible contracts which are: (1) Contracts entered into in behalf of wards. (2) Contracts agreed upon in representation of absentees. (3) Contracts undertaken in fraud of creditors. (4) Contracts which refer to things under litigation. There are also some other instances where contracts are rescissible such as when any of the co-heirs received things valued at least one-fourth than the share he is entitled or partition, if the lessor or lessee should not comply with their obligations or when the vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Payment made by an insolvent debtor is rescissible and it is must be judicially declared. Article 1383 provides that rescission is only subsidiary. It can only be availed when it is proved that there is no other legal means aside from rescinding, even such contract is covered by Article 1381. Article 1384 Rescission shall be only to the extent necessary to cover the damages caused. The entire contract need not be set aside by recission if the damage can be repaired or covered by partial recission. Article 1385 is about effects of rescission. It is stated that there is no obligation to restore if nothing has been received. The parties must return to each other the object of the contract with its fruits and the price thereof with legal interest from the moment the court declares a contract rescinded. This article also provided situation when rescission is not allowed such as if the party who demands rescission cannot return what he is obliged to as to what has been discussed before, the parties are required to give back what they have received. In addition to that, rescission is also not allowed if a property is legally in possession of third person who acted in good faith just like what the previous have discussed. Article 1386 states that if a contract entered into is in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not because the law presumes that court acts in interest of the ward or absentee. Article 1387 provides alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Article 1388 states that the purchaser which acted in bad faith must return the same if the sale is rescinded and if it is impossible for him to return it, he must indemnify the former. Article 1389 states that general rule that the action to claim rescission must be commenced within four years from the date the contract was entered into. Thank you for this lecture video, Atty. Keep safe and God bless.
Vesliños, Hannah Camille C. 1-BSA Pamantasan ng Cabuyao Chapter 3 Forms of Contracts Article 1356 A form of contract refer to the manner in which a contract is executed or manifested. The contract maybe oral or in writing or party oral and party in writing. As a general rule of contract are binding abd therefore, enforceable reciprocally by the contracting parties whatever may be the form in which the contract has been entered into. In other hand, contract are not required to reduce in general rule but there is exception: 1. The law requires that a contract be in the form to be valid. 2. The law requires a contract be in some form to be enforceable or proved in a certain way. 3. The law requires that a contract be in some form for the convenience of the parties or fot the purpose of affecting third person. However, a contract requires to executed in a certain form to be valid. In Article 1158 the law may require a certain form for convenience of the parties in order to make effective, an against third person. Sometimes the law will requires that a certain contract be executed in a certain way to be effective as a third person. The following must appear in a public moment. 1. Act and Contract which have for their object the creation, transmission, notification and extinguishment of real right over immovable property, sales of real property of an interest therin is governed bt Article 1403 No. 2 & 1405. 2. The session, reputation or renunciation of there with right or of those of conjugal partnership of gains; 3. The power to administer property or any power which for its object appearing or which should appear in public document or should prejudice on a third person . In Article 1358 all Contract that amount involved exceeds five hundred pesos appear in writing even private one. A contract must be registered also ; 1. Sale or transfer of large cattle public instrument means duly authorized. Chapter 6 which discussed the Rescissible Contract , upon this article it gives the four type of Rescissible Contract which shown below: 1. Contract entered into a behalf of wards 2. Contract agreed upon in representation of absentees. 3. Contract untertaken in fraud if creditor. 4. Contract which refers to things under litigation. In Article 1382 that the payment made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled. In this article, included in the obligation referred to are not only those that have not yet become due and demandable but also those which can't legally be demanded such as matured obligation and those threat have prescribed. In Article 1385 show the effect of Rescission that there is bo obligation to restore if nothing have beeb received. When the court declares a contract rescinded the parties must return to each other the object of the contract with its fruits and the price therefore with legal interest. In this Article 1386 which in Contract into behalf of ward or absentee, rescission cannot take place wheb the court its validity even there is leison or not the reason is the law presume that court act in the interest of the ward or absentee. If there are two or more alienation the first shall br liable first and so successively. As a general rule of Article 1389 an action to claim rescission must be commence within four (4) years from the date the contract was entered into .
Serrano, Kaela B. 1BSA-A Good day, Atty! Here are my key takeaways from this video. Article 1356 Form of a contract refers to the manner in which a contract is executed or manifested. General rule: contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present Except: -Law requires that a contract be in some form to be valid. -Law requires that a contract be in some form to be enforceable or proved in certain way -Law requires that a contract be in some form for the convenience of the parties or for the purpose of affecting third persons Article 1357 The law may require a certain form of the convenience of the parties in order to make effective, as against third persons. Article 1358 Things that must appear in a public document. All other contracts where amount involved exceeds 500 pesos must appear in writing, even private one. Contracts that must be registered -Sale or transfer of large cattle -Chattel mortgage are the Article 1380 rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescession is granted in the interest of equity. It is defective but a valid contract. Rescession- a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. Article 1381 Types of rescissible contracts: -Contracts enters into behalf of wards -Contracts agreed upon in representation of absentees -Contracts undertaken in fraud of creditors -CContracts which refer to things under litigation. The requisites of rescission of contracts undertake in fraud of creditors: 1. There must be an existing credit prior to rescssion, though it is not yet due or demandable. 2. There must be fraud on part of debtor. 3. Creditor cannot recover his credit, not being required that debtor is insolvent. Other instances where contracts are rescissible are also discussed in this article. Article 1382 Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. It must be judicially declared if the debtor is insolvent. Article 1382 Rescission is only subsidiary meaning it comes next after the primary remedy. It can only be availed when proved that there is no other legal means aside from rescinding, even if the contract is considered rescissible because there are still other remedies. If the damage is repaired, rescission cannot take place. Article 1384 Rescission is only to the extent of creditor's unsatisfied credit. Its effect is the contract need not to be set aside if damage can be repaired or covered by partial rescission. For the reason that the law is to preserve or respect the contract, not to extinguish it. Effect of rescission: there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Rescission is not allowed if the party who demands rescission cannot return what he is obliged to and of the property is legally in possession of a third person who acted in good faith. Article 1387 Alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also mentioned. Article 1388 Purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. Article 1389 A general rule: the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent. Thank you, Atty!
Kian John Ace Turico 1BSA-A Pamantasan ng Cabuyao Good day, Atty., here are my key takeaways for the part 11 discussion of The Law on Obligations and Contracts CHAPTER 3: FORM OF CONTRACTS Article 1356 discussed the definition of form of contracts and the rules regarding form of contracts. Form of contracts refers to manner in which a contract is executed or manifested. As general rule, contracts are binding and therefore enforceable reciprocally by contracting parties as long as all requisites of a contracts are present or met except when law requires that the contract be some form to be valid, enforceable, and for the convenience of the parties or affected third parties. The provision also provides rare cases when the law requires a certain form of contracts for it validity. These are: 1. Donation of real property that must be in public instrument. 2. Donation of personal property that exceeds in the value of 5000 pesos must be in writing. 3. Sale of land through an agent requires that the authority of agent must be in writing otherwise, it is void. 4. Stipulation to pay interest must also be in writing otherwise, void. 5. Contract of partnership must be in public instrument if immovable to which shall be attached a signed inventory of immovable property contributed. Article 1357 said that law requires a document for other special form for the convenience of the parties to be effective, as against the third person. It is no indispensable since they are allow ed by law to compel the other to observe proper form. Article 1358 speaks about what must appear in a public document. Aside from four given public document, it is said that all other contracts where amount involves exceeds 500 pesos must appear in writing. CHAPTER 6: RECISSIBLE CONTRACTS (FORM OF DEFECTIVE CONTRACT) Article 1380 said that contracts may be rescinded in cases established by law. The provision discussed the definition of rescissible contracts, its validity, rescission and the requisites of rescission. Rescissible contracts are defective contracts but still valid, because of a remedy given by law which is known as rescission. The rescission is given because of interest of fairness and equity. Rescission may be availed through the following requisites: 1. Contract must be validly agreed upon. 2. Lesion to one party or to third person must be present. 3. Rescission must be based upon a case provided by law 4. Rescission is the only remedy to obtain reparation for damages. 5. Party asking for rescission must be able to return what he is obliged to restore. 6. Object of contracts must not legally be in the hands of third person who did not act in bad faith. 7. Period for filing rescission must not be prescribed. Article 1381 provides five types of rescissible contracts. 1. Contracts entered into behalf of wards- wards are persons under guardianship due to incapacity. 2. Contracts agreed upon in representation of absentees- absentee refers to a person being unknown or persons who does not appear after sufficient elapsed of period of time. 3. Contracts undertaken in fraud of creditors- an act of debtor in trying to alienate all his properties beyond the reach of creditor. It provides the following requisites: 3.1 An existing credit prior to the contract to be rescinded. 3.2 Fraud in the part of debtor, either presumed or proved. 3.3 Creditor cannot recover his credit in any manner. 4. Contracts which refer to things under litigation 5. Other instances that contracts are rescissible: 5.1 Partition- co-heirs received things valued at least one-fourth than the share he is entitled. 5.2 Lessor or lessee do not comply to their obligation, aggrieved party may ask for rescission and indemnification for damages. 5.3 Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Article 1382 said that payment made by the debtor who is in the state of insolvency for the fulfillment of his obligation is rescissible. The insolvency of the debtor must be judicially declared. Article 1383 speaks about rescission being a subsidiary only. It is said that rescission cannot be instituted except when the party has no other legal means to obtain reparation of damages. In other words, it is not the principal remedy. Article 1384 speaks about the effect, extent, and reason for rescission. For its extent, only to the extent of creditor’s unsatisfied credit. For the effect, entire contract need not be set aside if damage can be repaired or covered by partial rescission. For the reason is to preserve the contract and not to extinguish. Article 1385 said that when the court declares rescission, parties are bound to return what they received together with its fruits and price with legal interest. Aside from that, the provision also discussed where rescission is not allowed and these are: 1. When the party demanded for rescission cannot return what he should return under the contract 2. When the property is in legal possession of third person who acted in good faith. Article 1386 said that when a ward or absentee entered into a contract and law approved its validity, then it cannot be rescinded regardless if there is lesion or not. The reason behind this is because law presumed that the court acts in interest of ward or absentee. Article 1387 talks about when alienation in fraud of creditors are presumed. It is presumed in alienation of gratuitous title and alienation by onerous title. In addition, it also discussed the circumstances denominated as badges of fraud. (1) Consideration of conveyance is fictitious, (2) Transfer made by debtor after suit has begun and is pending against him, (3) Sale upon credit by an insolvent debtor, (4) Transfer of all his property by a debtor, especially when he is insolvent, (5) the transfer is made between father and son, when there are present some or any of the above circumstances, (6) vendee knows that the vendor had no properties other than that sold. Article 1388 said that purchaser who acted in bad faith must return the same if sale is rescinded. If there are two or more acquirer of bad faith, the first one should be liable first and successively. Article 1389 talks about the period in filing action for rescission. As general rule, it commenced within four years from the date the contract was entered into. The exceptions to the general rule are when a person under the guardianship, period shall begin from termination of incapacity and when a person is an absentee, the period will begin from the time the domicile is known. Aside from period, it also talks about the person who are entitled to bring action. They are: 1. Injured party or the defrauded creditor. 2. Heirs, assigns, or successor in interest. 3. Creditors of the above entitled to subrogation. Thank you for the video lecture, Atty.
Padillo, Francheska Agatha V. 1BSA-B PNC Good day Atty. Here is the summary of what I've learned in this video lecture. Article 1356. Form of contract refers to the manner in which a contract is executed or manifested. As a general rule, contracts are not required to be reduced into a certain form. But there are exemptions: 1. The law requires that a contract be in some form to be valid. 2. The law requires that a contract be in some form to be enforceable or proved in a certain way. 3. The law requires that a contract be in some form for the convenience of the parties or for the purpose of affecting third persons. Article 1357. The law require a certain form for the convenience of the parties in order to make effective, as against third persons. The special form is not indispensable since they are allowed by law to compel the other to observe the proper form and this right may be exercised simultaneously with action to enforce the contract. Article 1358. The following must appear in a public document: (1) acts and contracts which have fpr their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2, and 1405, (2) the session, reputation or renunciation of here with rights or of those of conjugal partnership of gains, and (3) the power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should prejudice a third person. Article 1380. Rescissible Contracts - those balidly agreed upon because all essential elements exist therefore legally effective but remedy of recission is grabted in the interest of equity. Rescission - a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. Requisites of Rescission 1. The contract must be validly agreed upon. 2. There must be lesion or pecuniary prejudice to one of the parties or to a third person. 3. The rescission must be based upon a case especially provided by law. 4. There must be no other legal remedy to obtain reparation for the damage. 5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract 6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith. Article 1381. Types of Rescissible Contracts: Contracts: (1) entered into in behalf of wards, (2) agreed upon in representation if absentees, (3) undertaken in fraud of creditors, and (4) refer to things under litigation. Other Instances where Contracts are Rescissble: 1. Partition 2. If the lessor or lessee should not comply with their obligations 3. Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Article 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Article 1383. Rescission is only subsidiary and can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art 1381. •If damage is repaired, rescission cannot take place. Article 1384. Rescission Extent - Only to the extent of creditor's unsatisfied credit. Effect - Entire contract need not be set aside if damage can be repaired or covered by partial rescission Reason - The law is to preserve or respect the contract, not to extinguish it. Article 1385. The effect of rescission is there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract whith its fruits and the price thereof with legal interest. Article 1386. In contracts entered into behalf of ward or absentee, rescission caanot take place when the court approved its validity, even there is lesion or not. The reason is law presumes that court acts in the interest of the ward or absentee. Article 1387. Alienations presumed in fraud of creditors: (1) by gratituitous title, and (2) by onerous title. As a general rule of Article 1389, the action to claim rescission must be commenced within four years from the date contract wast entered into. Thank you Atty. for this video lecture.
Aliah Greicel E. Lacanilao 1BSA-A Pamantasan ng Cabuyao *Contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which contract has been entered into, provided all the three essential requisites for their validity are present. CONTRACT = FORM OF VALIDITY 1. Donation of real property = public document 2. Donation of personal property the value of which exceeds P5000.00 = donation and acceptance must be in writing 3. Sale of land through an agent = authority of agent must be in writing 4. Stipulation to pay interest = must be in writing 5. Contract of partnership = if an immovable is contributed, it must be in public instruments *The law may require a certain form for the convenience of the parties against third persons. *The special form is not indispensible since they are allowed by law to compel the other to observe proper form. The following must appear in a public document: 1. Acts and contracts 2. Session, reputation or renunciation of here with rights 3. The power to administer property 4. Cession of actions of rights *All other contracts where amount involved exceeds P500 must appear in writing • Sale or transfer of large cattle and chattel mortgage are contracts that must be registered Defective Contracts •Rescissible contracts - those validly agree upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity Requisites of Rescission 1. Contract must be validly agreed upon 2. There must be lesion or pecuniary prejudice to one of the parties or to a third person 3. Must be based upon a case especially provided by law 4. No other legal remedy to obtain reparation for the damage 5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract 6. Object of the contract must not legally be in the possession of third persons who did not act in bad faith 7. The period for filling the action for rescission must not have prescribed Types of Rescissible Contracts: 1. Contracts entered into in behalf of wards (under guardianship of another) 2. Contracts agreed upon in representation if absentees 3. Contracts undertaken in fraud of creditors 4. Contracts which refer to things under litigation Other Instances where Contracts are Rescissible: 1. Partition - when one co-heirs received things valued at least 1/4 lesser than the share he is entitled 2. If the lessor or lessee should not comply with their obligations 3. Vendee may rescind when the real estate sold is less than or exceeds 1/10 of the agreed price *When the payment is made by an insolvent debtor, it is rescissible. *When a debtor is insolvent, it must be judicially declared. *Rescission is only subsidiary *If damage haa been repaired, rescission cannot take place Effect of rescission - there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. *In contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not as the law presumes that the court acts in the interest of the ward or absentee. Alienations Presumed in Fraud of Creditors: 1. Alienation by gratuitous title 2. Alienation by onerous title *The purchaser in bad faith must return the same if the sale is rescinded and if it is impossible to do so, he must indemnify. When there are two or more, first shall be liable first and so on. *The action to claim rescission must be commenced within 4 years from the date the contract was entered to except if the person is under guardianship or he is an absentee. Persons Entitled to Bring Action: 1. The injured party or the defrauded creditor. 2. His heirs, assigns, or successors in interest 3. The creditors of the above entitled to subrogation
Padayao, Louisa Marie O. 1BSA-B Good day Atty. This video lecture, first, talks about the Chapter 3 of Contracts - the Different Forms of Contracts. Beginning from the title, this refers to the manner in which how a contract is executed or manifested. There is a general rule which says that contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. However, there are three exceptions to this: (1) The law requires that a contract to be in some form to be valid; (2) The law requires that a contract to be in some form to be enforceable or proved in a certain way, and; (3) The law requires that a contract to be in some form for the convenience of the parties or for the purpose of affecting third persons. Special forms are not indispensable since they are allowed by law to compel the other to observe the proper form, and this right may be exercised simultaneously with the action to enforce the contract. A public instrument/document is a form which requires that a contract must be reduced in writing and duly notarized by a notary public, and therefore it is also called as notarized documents. The following must appear in a public document: (1) Acts and contracts which have for their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2, and 1405; (2) The session, reputation, or renunciation of here with rights or of those of conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in public document or should prejudice a third person, and; (3) The cession of actions of rights proceeding from an act appear in a public document. Jumping to the second part, Chapter 6, which talks about rescissible contracts. These are contracts which are validly agreed upon because all essential elements exist, therefore, are legally effective but remedy of rescission is granted in the interest of equity. It is only a subsidiary remedy. It can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art. 1381. Rescission is a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. There are seven requisites for the remedy of rescission be granted: (1) The contract must be validly agreed upon; (2) There must be lesion or pecuniary prejudice to one of the parties or to a third person; (3) The rescission must be based upon a case especially provided by law; (4) There must be no other legal remedy to obtain reparation for the damage; (5) The party asking for rescission must be able to return what he is obliged to restore by reason of the contract; (6) The object of the contract must not legally be in the possession of third persons who did not act in bad faith, and; (7) The period for filing the action for rescission must not have prescribed. The four types of rescissible contracts are: (1) Contracts entered into in behalf of wards - these are persons under guardianship or those who cannot act on their own due to some incapabilities; (2) Contracts agreed upon in representation if absentees - persons who does not appear after a sufficient lapse of period of time; (3) Contracts undertaken in fraud of creditors - an act of debtor to alienate all his properties beyond the creditor’s reach -, and; (4) Contracts which refer to things under litigation. The requisites of rescission of contracts undertaken in fraud of creditors is that there must be an existing credit prior to rescission, though it is not yet due or demandable, there must be fraud on part of debtor (maybe presumed or proved), and creditor cannot recover his credit, not being required that debtor is insolvent. However, there are other instances where contracts are rescissible: (a) Partition - when any of the co-heirs received things valued at least one-fourth than the share he is entitled; (b) If the lessor or lessee should not comply with their obligations, and; (c) Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. It was said that there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the effect is that the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. There are cases when rescission is not allowed. First is if the party who demands rescission cannot return what he is obliged to, and, if the property is legally in possession of a third person who acted in good faith. In cases when the purchaser is in bad faith, he must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. In cases when there are two or more, the first shall be liable first, and so on, successively. There is a general rule which says that the action to claim rescission must be commenced within four (4) years from the date the contract was entered into. The exceptions is when the person is under guardianship, the beginning of period occurs upon the termination of incapacity, and when the person is an absentee, the beginning period is when his domicile has become known. This video lecture is indeed helpful for me to easily take notes and understand the concepts since it has been summarized properly. Thank you again for this, Atty.
Quiom, Christine B. 1BSA-B Pamantasan ng Cabuyao Good day Atty. The following is a summary of what I learned in this lecture. Article 1356 pertains to form of a contract. This is a manner in which contract is executed or manifested. As a general rule, any form is valid provided that the 3 essential requisites is present unless the law requires some formalities in order that contract will be enforceable. Article 1357 states that law may require a certain forma for the convenience of the parties in order to make effective, as against third persons. Article 1358 enumerates certain requisites that must appear in a public document. The contract that must be registered is contract of sale or transfer of large cattle and chattel mortgage. A public document/instrument is an agreement in writing that must be duly notarized by a notary public. Article 1380 refers to rescissible contracts, one of the kind of defective contracts that are validly agreed upon because all essential elements are present however rescission as remedy is granted in the interest of fairness or equity. Rescission- is a cancellation of the contract. Article 1381 provides the type of rescissible contracts. Contracts that are; * entered into in behalf of wards * agreed upon in representation of absentees * undertaken in fraud of creditors, and * refers to things under litigation. Article 1382 states that rescission is also applicable when in a state of insolvency, payment is made for obligations to whose fulfillment the debtor cannot be compelled. Article 1383 discusses that rescission is only a subsidiary remedy meaning that it can be availed only if proved that there is no other legal means aside from rescinding. Article 1384 states that rescission is only to the extent of creditors unsatisfied credit. Its reason is to preserve or respect the contract, not to extinguish it. Article 1385 gives the effect of rescission which is the parties must return each other the object of the contract with its fruits and the price thereof with legal interest. Article 1386 occurs when the court approved the validity of contracts entered into in behalf of ward or absentee, rescission cannot take place. It is because the law presumes that court acts in the interest of the ward or absentee. Article 1387 indicates when alienation presumed in fraud of creditors. The alienation by gratuitous title and by onerous title. Article 1388 provides the liability of purchser in bad faith. This is to return the same if the sale is rescinded and if it is impossible then there's should be indemnification. Article 1389 gives the general rule that the action to claim rescission must be commenced within four years from the date the contract was entered into except for the person under guardianship and absentees. Person entitled to bring action for rescission: * injured party or defrauded creditor * heirs, assigns, or successors * creditors entitled to subrogation
Danica May J. Pajac 1BSA-A Pamantasan ng Cabuyao Good day Attorney! Here some of my knowledge and learnings from your video discussion. Chapter 2 Form of Contracts Article 1356 Form of a contract It is a manner by which the contract was executed. As the general rule of Form of contract, it is binding thus whatever may be the form is entered, all three important requisites for the validity are present. Article 1356 Exceptions: 1. The law required that the contract in some form is to be valid. 2. It should be proved in a certain way. 3. It is for the purpose of the third party. When it comes to the donation of real property the amount is five thousand pesos but in fraud the amount is five hundred pesos only when it comes to sale of personal profit. The five nation of real property regardless of the value is required to be in formalities. Article 1357 The law may require a certain form for the convenience of the party in able to be effective. Article 1358 The acts and contracts that obtain their object, creation, transmission, notification of real rights over immovable property, the sales in real property is under the law of Arts 1403 No 2 and 1405 The session or reputation of here with rights. The power to administer property, should appear in a public document. The cession of action of rights proceeding from an act appear in a public document. Chapter 6 Rescissible contract or also known as defective contracts. Article 1380 Resistible contract are those validly agreed upon because all of the elements are exist thus it is effective but remedy of recession is granted in the interest of equity. Requisites of rescission The contract must be validly agreed. There must be a lesion to one of the parties or third person The rescission must be based upon a case that provided by the law. There must be no other legal remedy. Article 1381 Types of resistible contract Contract must entered into in behalf of wards Contract must agreed in representation if there is absentees. Contracts undertaken in fraud of creditors. Requisites of rescission of Contracts Undertaken in fraud of creditors. There must be an existing credits prior to rescission though it is not yet due or demandable. There must be in fraud of debtor Creditor cannot recover his or her credit. Other instances where contracts are resistible Partition means he will considered as entitled if any of the co heairs receive things valued at least on fourth than the share If the lessor should not comply with their obligation. Article 1382 the payments that made in a state of insolvency for obligation to those fulfillment th debtor could not be coming compelled. Article 1383 Rescission is only subsidiary it can be implement if it id proved that there is no other legal instead it is covered. Article 1384 It can be extent if only the extent to creditor unsatisfied credit. Effect when contract need not be set aside. Article 1385 Article of rescission The object of the contract with its fruit and the price thereof with legal interest. When rescission is not allowed if the party who demand rescission can't return what he is obliged and if the property is legally in possession of a third person who acted in good faith. Article 1386 Rescission cannot take place when the court approved its validity even there is lesion or not. Article 1387 Alienation presume in fraud of creditors Alienation by gratuitous tide by onerous title. Article 1388 The purchaser with bad faith must return the same When there are two or more first shall be liable and do on successfully. Article 1389 The action to claim rescission must be commenced within four years.
Capillo, Aiberlyn C. IBSA-A PNC Good day atty, the following are the summary of my learnings from this video. Chapter 3: Forms of Contracts Article 1356- Contracts may be oral, or in writing, or partly oral and partly written. It may be express when the parties expressly set forth their intentions, or implied when their intentions may be inferred form their actions or conducts. Article 1357- In certain cases, a certain form is required for the convenience of the parties in order that the contract may be registered in the proper registry to make it effective. Article 1358- Public document is required only for the convenience and greater protections of the parties and to make the contract binding as against third persons. Chapter 4: Reformations of Instruments Article 1359- Reformation is the remedy allowed by law by means of which a written instrument is amended or rectified so as to express or conform to the real agreement or intention of the parties when by reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express such agreement or intention. Article 1360- In case of conflict between the provisions of the New Civil Code and the principles of the general law on reformation, the former prevails. Article 1361- Mutual mistake is mistake of fact that is common to both parties of the instrument which causes the failure of the instrument to express their true intentions. Article 1362- The right to ask for reformation is granted only to the party who was mistaken in good faith. Article 1363- Remedy of reformation may be availed of the party who acted in good faith. Article 1364- Neither party is responsible for the mistake. Hence, either party may ask for reformation. Article 1365- The reformation of the instrument is proper: otherwise, the true intention of the parties would be frustrated. Article 1366- There shall be no reformation on the following cases: Simple donations inter vivos wherein no condition is imposed, wills, and when the real agreement is void. Article 1367- The party who brings an action to enforce contract cannot subsequently ask for its reformation. Article 1368- These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled. Article 1369- Rules of court shall govern procedures for the reformation of instruments. Chapter 5: Interpretation of Contracts Article 1370- Interpretation of a Contract is the determination of the meaning of the terms and words used by the party in their written contracts. Article 1371- Contemporaneous and subsequent acts are relevant in the determination of the intention of the contracting parties. Article 1372- Where in a contract there are general and special provisions covering the same subject matter, the latter control over the former when the two cannot stand together. Article 1373- When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation. Article 1374- Contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instrument and not from particular words, phrases, or clauses. Article 1375- If a word is susceptible of two or more meanings, it is to be understood in that sense which is most in keeping with the nature and the object of the contract in line with the cardinal rule that the intention of the parties must prevail. Article 1376- It is necessary to prove the existence of usage or custom, the burden of proof is upon the party alleging it. Article 1377- Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity. Article 1378- If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules. Article 1379- The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts. Chapter 6: Recissible Contracts Article 1380- Recissible contracts are those validly agreed upon because all the essential elements exist and therefore, legally effective, but in cases established by law, the remedy of recission is granted in the interest of equity. Article 1381- This article enumerates the types of recissible contracts: Contracts entered into on behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refer to things under litigation, and all other contracts specially declared by law to be subject to recission. Article 1382- The payments must have been made “for obligations to whose fulfillment the debtor could not be compelled at the time they were effected.” Article 1383- Recission is not a principal remedy, means that it can be availed of only if the injured party proves that he has no other legal means aside from rescinding the contract to obtain redress for the damage caused. Article 1384- The entire contract need not be set aside by recission if the damage can be repaired or covered by partial recission. Article 1385- The purpose of recission is to restore the parties to their original situation. Article 1386- If contract entered into on behalf of a ward or absentee has been approved by the court, recission cannot take place because it is valid whether there is lesion or not. Article 1387- This article establishes prima facie presumptions of fraud in the case of alienation by the debtor of his property ( alienation by gratuitous title and alienation by onerous title). Article 1388- The purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded and if impossible, he must indemnify the former. Article 1389- The action to claim recission must be commenced within four years from the date the contract was entered into. Thank you Atty.
Panganiban, Descerey R. 1 BSA-A Good Day Atty. These are my takeaways in this video lecture According to Article 1356, the form of contracts relates to the way in which a contract is executed or expressed. Article 1380 defines rescissible contracts as those that are lawfully agreed upon since all necessary components are present. Rescission is a legal remedy for recouping losses by restoring things to their original state before to the contract's execution. Payments made in a state of bankruptcy for commitments whose fulfillment the debtor could not be compelled to complete are prohibited under Article 1382. Contracts are also rescindible in several other circumstances, such as when any of the co-heirs obtained items worth at least one-half of the contract's value.
Olaivar, Jayvee D. 1BSA-A Pamantasan ng Cabuyao Chapter 3: Form of Contracts (Article 1356-1358) It talks about the forms of contract which can be formal, required by the law to be in some manner where a contract is manifested a executed, and informal, can be executed in any whatever forms may it be oral, written or partly oral and partly written. Forms refers to the manner in which a contract is manifested and executed. General Rule is that forms in a contract is not required as long as it contains all the essential requisites COC except for the purpose of validity, enforceability and convenience. The right to compel the other party to execute the necessary form applies only if the form is needed for the convenience and contract is valid and enforceable. The following must appear in a public document; creation, transmission, modification, or extinguishment of real rights over immovable property, renunciation of hereditary rights, authority to administer or manage property, cession of rights and any other contracts where the amount involved is five hundred pesos above. Chapter 6: Rescissible Contracts (Article 1380-1389) Rescissible contracts are those validly agreed upon because all the essential elements exist and therefore, legally effective, but in cases established by law, the remedy of rescission is granted in the interest of equity. This article 1381 enumerates the types of rescissible contracts: Contracts entered into on behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refer to things under litigation, and all other contracts specially declared by law to be subject to rescission. The payments must have been made “for obligations to whose fulfillment the debtor could not be compelled at the time they were effected.”Rescission is not a principal remedy, means that it can be availed of only if the injured party proves that he has no other legal means aside from rescinding the contract to obtain redress for the damage caused. The entire contract need not be set aside by rescission if the damage can be repaired or covered by partial rescission. The purpose of rescission is to restore the parties to their original situation. If contract entered into on behalf of a ward or absentee has been approved by the court, rescission cannot take place because it is valid whether there is lesion or not. This article establishes prima facie presumptions of fraud in the case of alienation by the debtor of his property ( alienation by gratuitous title and alienation by onerous title). The purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded and if impossible, he must indemnify the former. The action to claim rescission must be commenced within four years from the date the contract was entered into.
Uy, Joselle Angelu C. 1BSA-A Pamantasan ng Cabuyao Good Evening Atty. Here are my key takeaways from the video lecture. Article 1356 Form of a contract refers to the manner in which a contract is executed or manifested (Article 1356). As a general rule, contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present Exceptions: 1. the law requires that a contract be in some form to be valid 2. to be enforceable or proved in a certain way, and; 3. to be in some form for the convenience of the parties of for the purpose affecting third persons. Article 1357 the law may require a certain form of the convenience of the parties in order to make effective, as against third persons. Article 1358 states what are the things that must appear in a public document. All other contracts where amount involved exceeds 500 pesos must appear in writing, even private one. Sale or transfer of large cattle and chattel mortgage are the contracts that must be registered. Chapter 6 Rescissible contracts Article 1380 provides that rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of recession is granted in the interest of equity. It is defective but a valid contract. On the other hand, rescission means a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. The requisites of rescission are also discussed under this article. Types of rescissible contracts are tackled under article 1381. Those are contracts enters into 1. behalf of wards 2. contracts agreed upon in representation of absentees 3. contracts undertaken in fraud of creditors, and 4. contracts which refer to things under litigation. The requisites of rescission of contracts undertake in fraud of creditors are as follow: 1. There must be an existing credit prior to rescission, though it is not yet due or demandable. 2. There must be fraud on part of debtor. 3. Creditor cannot recover his credit, not being required that debtor is insolvent. Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. It must be judicially declared if the debtor is insolvent. Article 1383 provides that rescission is only subsidiary meaning it comes next after the primary remedy. It can only be availed when proved that there is no other legal means aside from rescinding, even if the contract is considered rescissible because there are still other remedies. If the damage is repaired, rescission cannot take place. Subsidiary- comes next after the first primary- comes first (counterpart of subsidiary) article 1384 rescission is only to the extent of creditor's unsatisfied credit. Its effect is the contract need not to be set aside if damage can be repaired or covered by partial rescission. For the reason that the law is to preserve or respect the contract, not to extinguish it. ARTICLE 1385 Effect of rescission is, there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Rescission is not allowed: 1. if the party who demands rescission cannot return what he is obliged to 2. If the property is legally in possession of a third person who acted in good faith. Article 1386 In contracts entered into in behalf of wards or absentees, rescission cannot take place when the court approved its validity, even there is lesion or not. REASON: because the law presumes that court acts in the interest of the ward or absentee. Article 1387 provides the alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also discussed. 1. The consideration of conveyance is fictitious or inadequate. 2. A transfer made by the debtor after suit has begun and is pending against him. 3. A sale upon credit by an insolvent debtor. Article 1388 states that the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. -When there are 2 or more, first shall be liable first, and so on, successively. Article 1389 General Rule: the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent.
Paguigan, Lorie Jean C. Pamantasan ng Cabuyao 1BSA-A A rescissible contract is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party. The court can therefore rescind, or set aside, the contract for equitable reasons. Classification of Defective Contracts: Voidable or Annullable contracts - those where the consent of one party is defective either because of incapacity to give consent to a contract, or where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
Claris M Paligar 1BSA-A Here are some of my notes about this topic. A rescissible agreement is one that was gone into lawfully by the contracting parties yet has brought about financial harm to one of the gatherings or an external gathering. The court can subsequently cancel, or put away, the agreement for fair reasons. Rescission under Article 1191 is a consequence of what individuals typically call as break of agreement. In complementary agreements, parties have shared commitments and the commitment by one or the other party to do, not to do or to give something is really the reason for the other party to consent to likewise do, not do or offer something as a trade off. So when one doesn't play out his commitments under his agreement, the other party has cures under the law. Under the said Article 1191, the harmed party can pick among satisfaction and rescission, with installment of harms regardless. This implies that the harmed party can either force the blameworthy party to play out his piece of the agreement and guarantee for harms because of the penetrate, or it can cancel the agreement and furthermore guarantee for harms.
Azada, Leonardo Daniel T. 1BSA-A PnC Good day Atty. Here are my key takeaways from this video lecture, form of contracts, and rescissible contracts. Article 1356 - 1358: Form of contracts refers to the manner in which a contract is executed or manifested, certain forms may require to the contracting parties by law in order to make effective, as against third persons. There is also different information that must appear in a public document depending on the contract made by both the contracting parties. Article 1380: Rescissible contracts are those validly agreed upon because all essential elements exist but the remedy of rescission is granted in the interest of equity. Article 1381: Types of rescissible contracts are those contracts entered into on behalf of wards, agreed upon in representation if absentees, undertaken in fraud of creditors, and those contracts in which refer to things under litigation. Article 1382: If the person is in the state of insolvency, then that particular person could not be compelled. Article 1383: This article states that rescission is only a subsidiary remedy. Article 1384: Rescission has an extent of creditor's unsatisfied credit, if the contract could still be repaired or covered, then partial rescission could be enforced because the law is to preserve or respect the contract, not to extinguish it. Article 1385: This article states that both parties must return what they had received from each other, with its fruits and price with legal interest. Article 1386: In a contract entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even if there is a lesion or not. Article 1387: Alienations presumed in fraud of creditors are by gratuitous and onerous titles. Article 1388: The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. Article 1389: A rescissible contract must be commenced within four years from the date the contract was entered into except if the exceptions could be applied by the contracting parties.
Sahurda, Mary Lady Lou C. 1BSA-A Pamantasan ng Cabuyao Chapter 2 - Form of Contracts Article 1356 refers to the form of a contract which is the manner in which a contract is executed or manifested. As a general rule, contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into. Article 1357 may require a certain form for the convenience of the parties in order to make effective, as against third person. Article 1358 states that all contracts where amount involved exceed Five hundred pesos must appear in writing, even private one. Sale or transfer of large cattle and chattel mortgage must be registered as a contract. Chapter 6 - Rescissible Contracts Article 1380 tackles about rescissible contracts that are validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Rescission, on the other hand, is a remedy granted by law in order to secure the reparation of damages by restoring things to their same condition prior to the celebration of the contract. The requisites of rescission are: 1. The contract must be validly agreed upon. 2. There must be lesion or pecuniary to one of the parties or to a third person. 3. The rescission must be based upon a case especially provided by law. 4. There must be no other legal remedy to obtain reparation for the damage. 5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract. 6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith. 7. The period for filing the action for rescission must not have prescribed. Article 1381 enumerated 4 types of rescissible contracts: 1. Contracts entered into in behalf of wards 2. Contracts agreed upon in representation if absentees 3. Contracts undertaken in fraud of creditors 4. Contracts which refer to things under litigation Article 1382 clarified that payments made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled. Insolvent debtor must be judicially declared. Article 1383 tackles about rescission being only subsidiary because it can only be availed when proved that there is no other legal means aside from rescinding. However, rescission cannot take place if the damage is repaired. Article 1384 only lets rescission up to the extent of creditor’s unsatisfied credit. The entire contract need not to be set aside if damage can be repaired or covered by partial rescission because the law is to preserve or respect the contract, not extinguish it. Article 1385 explained that the effect of rescission will be no more obligation to restore if nothing has been received. But when the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. However, rescission is not allowed if the party who demands rescission cannot return what he is obliged to or if the property is legally possessed by a third person who acted in good faith. Article 1386 states that rescission cannot take place when the court approved its validity in contracts entered into behalf of ward or absentee, even there is lesion or not. It is because the law presumes that the court acts in the interest of the ward or absentee. Article 1378 presumed that alienations in fraud of creditors are by gratuitous title or by onerous title. Article 1388 talks about the purchaser in bad faith who must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause. But when there are two or more, first shall be liable first, and so on, successively. Article 1389 states the general rule when the action to claim rescission must be commended within four years from the date the contract was entered into. Thank you for the video lecture, Atty. Reyes!
Pamplona, Maynalyn Y. Pamantasan ng Cabuyao 1BSA-A Chapter 3: Form of Contracts I have learned that the form of a contract refers to how a contract was executed or manifested. It may be oral, or in writing, or partly oral and partly in writing. It is classified as formal and informal. As a general rule, it is not required to reduce in a certain form but there are exceptions. These exceptions are when the law requires a certain form for a contract to be valid, to be enforceable or proved in a certain way, and in order for the convenience of the parties in affecting the third party. It must be in public documents or instruments when a contract is about the donation of real property and contract of partnership if an immovable is contributed. While the donation of the personal property exceeds 5,000.00, the sale of land through an agent, and stipulation to pay interest must be in form of writing otherwise it will be void. In article 1357, it is said that sometimes, for the convenience of both parties the law may require a certain form. Under article 1358, there are some things that must be included in a public document. Some contracts, such as the sale or transfer of a large chattel and a chattel mortgage, must also be registered. While all other contracts where the amount exceeds 500.00 must appear in writing, even a private one. Chapter 6: Rescissible of Contracts Rescissible contracts are those contracts although defective are actually valid contracts. Even if it is a defective contract, the law gives the contracting party to have a remedy of rescission. There are types of rescissible contracts. These are (1)contracts entered into on behalf of wards, (2)contracts agreed upon in representation of absentees, (3)contracts undertaken in fraud of creditors, (4)contracts that refer to things under litigation. However, if the payments are made when the debtor is insolvent for obligations, the debtor cannot be compelled, which is also rescissible(1382). Rescission is only a subsidiary remedy meaning it is only availed if there is no other legal remedy. Even though the contract is considered rescissible covered in article 1381, that does not necessarily mean that rescission of contracts is the best option. Additionally, rescission shall be only to the extent necessary to cover the damages caused. When a court declares a contract rescinded, the parties should render the object and the price with legal interest. Rescission is not allowed (1) if the party who demands rescission cannot return what he is obliged to and (2) if the property is in legal possession of a third person who acted in good faith. Furthermore, contracts entered into on behalf of wards and contracts agreed upon in representation of absentees, whether there is a lession or not, cannot be revoked once the court has acknowledged their validity. It is explained in article 1387 that alienation by gratuitous title and alienation by onerous title are alienations that are presumed in fraud of creditors. A purchaser acting in bad faith may be compensated if he is unable to return the item if the sale is canceled for whatever reason. On the other hand, when there are two or more, the first should be held accountable first, followed by the second, third, and so on. In article 1389, an action to claim rescission must be commenced within 4 years from the date contract was entered into. However, there are exceptions, (1) when the person is under guardianship, then the four years will commence to run upon the termination of incapacity, and (2) if a person is an absentee and his domicile is known, then the four years period will commence to run. Thank you!
Marjes, Kimberly Yrah R. 1BSA-B Good day Atty. Here are my takeaways on your video lecture. In chapter 2, forms of contract, which refers to the manner in which contract is executed as defined in Article 1356. As a general rule, contracts are not required to be reduced in a certain form unless the law requires that a contract be in some form to be valid or the law also requires the contract to be in some form to be enforceable or in some form for the convenience of the parties or for the purpose of affecting third person. Now, article 1357 implies that the law may require a certain form for the convenience of the parties in order to make effective, as against third person. This article also allow both the action to compel or to order the other party to observe proper formalities required by law. Article 1358 contract that must appear in a public document and that all other contracts, private and public, where amount exceeds 500 pesos must appear in writing. Moving to chapter 6, rescissible contract which is define by 1380 as those validity agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. While 1381 implies the types of rescissible contract such as contracts entered into in behalf of wards, agreed upon in representation of absentees, undertaken in fraud of creditors and which refer top thing under litigation. The article also imply the requisites of rescission of contracts undertaken in fraud of creditors (1) there must be a debt or obligation prior to rescission regardless of its due and demandability (2) There must be fraud in the part of the debtor (3) creditor cannot recover his credit, not being required that the debtor is insolvent. I have also learned that the payment made by insolvent debtor is rescissible according to article 1382. However under 1383, rescission is only subsidiary which means contract can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by article 1381. While article 1385 discusses the effect of a total rescission wherein the parties are obliged to return the object, fruit and the price with legal interest. The article also enumerates the different circumstances where rescission is not allowed. First is when the party who demands rescission cannot return what he is obliged to. second is if the property is legally in posession of a third person who acted in good faith. The contract entered into in behalf of ward, rescission cannot take place when the court approved its validity, regardless the presence of lesion. While Article 1387 implies the alienations presumed in fraud of creditors and circumstances as badges of fraud. Now Article 1389 states that 4 years from the date the contract was entered into was the valid period to exercise the action to claim rescission unless when the person is under guardianship, the period will terminate upon attaining the capacity, and when the person is an absentee then his domicile is known then the 4 year period will commence to run. The article also enumerates the persons entitled to bring action in a rescissible contract. Thank you for the lecture Atty.
Panganiban, Aubrey L. 1BSA-A Good day, Atty. Here’s what I’ve learned from the video about Chapter 2-Form of Contracts: Art. 1356 gives definition to the form of contract, refers to the manner in which a contract is executed or manifested. As a general rule, contract is enforceable by the contracting parties, whatever may be the form as long as it provides the essential requisites unless, the law requires that it will be in some form to be valid or provided in a certain way, or in some form of the convenience of the parties. Art. 1357 talks about form of the convenience of the parties. The law may require a certain form of the convenience of the parties in order to make effective, as against third persons. Art. 1358 talks about contracts which must appear in a public document; the creation of real rights over immovable property, cession or renunciation of hereditary rights or those of conjugal partnership of gains, power to administer property, and cession of actions or rights. These contracts are required to appear in a public instrument. Chapter 6-Rescissible Contracts Art. 1380 gives definition to rescissible contracts, validly agreed upon because all the essential elements exist and, therefore, legally effective but remedy of rescission is granted in the interest of equity. The law gives the other party the remedy of rescission or cancellation of contract in the interest of equity by means of restoration of things to their same condition prior to the celebration of said contract. It has the ff. requisites: the contract must be validly agreed upon, there must be lesion or pecuniary prejudice to one of the parties or third person, the rescission must be based upon a case, there must be no other legal remedy, the party asking for rescission must restore what he is obliged to, the object of the contract must not legally be in the possession of third person, and the period for filing the action for rescission must not have prescribed. Art. 1381 talks about the cases of rescissible contracts; contracts entered into in behalf of words, or agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and which refer to things under litigation. There are other instances where contracts are rescissible, first, partition or when co-heirs received things valued at least one-fourth than the share he is entitled. Next, if the lessor or lessee should not comply with their obligations. Lastly, vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Art. 1382 talks about payments made in a state of insolvency are also rescissible for obligations to whose fulfillment the debtor could not be compelled at the time they were effected. It is necessary that the debtor’s insolvency be judicially declared. Art. 1383 refers to the nature of action for rescission where rescission is not a principal remedy but only a subsidiary, meaning that it can only be availed only when proved that there is no legal means aside from rescinding the contract to obtain redress for the damages caused, even if the contract is covered by Article 1381. Art. 1384 talks about the extent of rescission. Rescission shall only be to the extent of the creditor’s unsatisfied credit because the policy of the law is to preserve or respect the contract. The entire contract need not be set aside by rescission if the damage can be repaired by partial rescission. Art. 1385 talks about rescission that creates obligation of mutual restitution. The purpose of rescission is to restore the parties to their original situation that’s why there is no obligation to restore if nothing has been received. When a court declares that there will be a rescission, the parties must return to each other the object of the contract together with its fruits and the price with legal interest. However, there are cases when rescission is not allowed. First, if the party who demands for it, cannot return what he is obliged to restore under the contract. And, if the property is legally in the possession of a third person who acted in good faith. Art. 1386 refers to contracts approved by the courts, that if a contract entered in behalf od ward or absentee, rescission cannot take place because it is considered valid whether there is lesion or not. Art. 1387 talks about when alienation presumed in fraud or creditors; alienation by gratuitous title, and by onerous title. Additionally, there are circumstances denominated as badges of fraud; the consideration of the conveyance is fictitious or inadequate, a transfer made by a debtor after suit has begun and while it is pending against him, a sale upon credit by an insolvent debtor, the transfer of all his property by a debtor, when he is insolvent or embarrassed financially, the transfer is made between father and son and the above circumstances are present, the failure of the vendee to take exclusive possession of all the property, and it was known to the vendee that the vendor had no properties. Art. 1388 talks about liability of purchaser in bad faith where if the purchaser acted in bad faith, he must return the same if the sale is rescinded and must indemnify the former if it is impossible for him to return it. Art. 1389 talks about period for filing action for rescission having a general rule that action to claim rescission must be commenced within four years from the date the contract has been made. Thank you for this lesson, Sir.
Azagra, Mark Johndave A. 1 BSA-B PNC Good Evening Atty. here are the summary of what i've learned on this discussion. ARTICLE 1356 • Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised. ARTICLE 1357 • If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. ARTICLE 1358 • Must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding from an act appearing in a public document. All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. ARTICLE 1380 • Rescissible Contracts. • Rescission. • Requisites of Rescission. (7) • Types of Rescissible Contracts. (4) ARTICLE 1381 • Requisites of Rescission of contracts undertaken in Fraud of Creditors. (3) • Other instances where contracts are Rescissible. (3) ARTICLE 1382 • Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible. ARTICLE 1383 • The action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. ARTICLE 1384 • Rescission shall be only to the extent necessary to cover the damages caused. ARTICLE 1385 • Effect of rescission. • The object of the contract with its fruits and the price thereof with legal interest. • When rescission not allowed.(2) ARTICLE 1386 • Rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts. ARTICLE 1387 • Alienations presumed in Fraud of Creditors. (2) • Circumstances denominated as badges of Fraud. (6) ARTICLE 1388 • Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them. If there are two or more alienations, the first acquirer shall be liable first, and so on successively. ARTICLE 1389 • The action to claim rescission must be commenced within four years. For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former’s incapacity, or until the domicile of the latter is known. Thank you Atty. and have a blessed Evening.
Pama, Kershey Anne L. 1BSA-A Chapter 3: Form of Contracts (Article 1356-1358) Contracts may be oral, or in writing, or partly oral and partly written. It may be express when the parties expressly set forth their intentions, or implied when their intentions may be inferred form their actions or conducts. A rescissible contract is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party. The court can therefore rescind, or set aside, the contract for equitable reasons. Valid contracts can be legally rescinded under certain circumstances. Types of contracts that are rescissible under Article 1381. Requisites of Rescission are contract must be validly agreed upon, there must be lesion or prejudice to one of the parties, must be based upon a case, there must be no other legal remedy because if there is then rescission will not take place, the one asking for rescission must be able to return what he is obliged, object must not be in possession of third person who did not act in bad faith, and filing the action for rescission must not have prescribed. There are types of rescissible contracts, one where entered by guardian in behalf of wards, two is agreed upon in representation of absentees, third is undertaken in fraud of creditors, and last is to things under litigation. There are also requisites for Fraud of creditors or known as Fraudulent Alienation of Property by the Debtor. One is there must be an existing debt, there must be fraud on the part of the debtor, and creditor cannot recover his credit. As a general rule of Article 1389 an action to claim rescission must be commence within four (4) years from the date the contract was entered into .
Melendrez, Ella Grace G. 1BSA-A Below are the summary of my learnings: CHAPTER 2 - FORM OF CONTRACTS Article 1356. Form of a contract refers to the manner in which a contract is executed or manifested. As a general rule, contracts are binding and therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. Article 1357. The law may require a certain form for the convenience of the parties in order to make it effective, as against third persons. Article 1358. The article refers to the things that must appear in a public document. Also, all other contracts where the amount involved exceeds P500 must appear in writing, even private one. CHAPTER 6 - RESCISSIBLE CONTRACTS Article 1380. Rescissible Contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. On the other hand, rescission is a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. Article 1381. There are four types of Rescissible Contracts. (1) Contracts entered into on behalf of wards (2) Contracts agreed upon in representation of absentees (3) Contracts undertaken in fraud of creditors (4) Contracts which refer to things under litigation. Article 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Article 1383. Rescission is only subsidiary meaning it can be availed only when proved that there is no other legal means aside from rescinding. In addition, if the damage is repaired, rescission cannot take place. Article 1384. Rescission is only to the extent of the creditor's unsatisfied credit. Its effect is that the entire contract need not be set aside if damage can be repaired or covered by partial rescission because the law is to preserve or respect the contract, not to extinguish it. Article 1385. Rescission is not allowed: (1) If the party who demands rescission cannot return what he is obliged to (2) If the property is legally in possession of a third person who acted in good faith. Article 1386. In contracts entered into on behalf of ward or absentee, rescission cannot take place when the court approved its validity, even if there is lesion or not. Article 1387. The alienation presumed in fraud of creditors are alienation by gratuitous title and by onerous title. Article 1388. The purchase in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. Article 1389. The general rule is that the action to claim rescission must be commenced within four years from the date the contract was entered into. Thank you, Atty. for the informative video lecture!
Mahilum, Alexis Joy 1BSA-A Pamantasan ng Cabuyao Good day, Attorney! Here are my takeaways from your video lecture. Article 1356 discusses about the forms of contract or the manner in which a contract is executed. As a general rule, contracts are binding, therefore, it is not required to be reduced in any form. The contract that is required to be executed in any form for validity are donation of real property, donation of personal property the value of which exceeds P5,000.00, sale of land through an agent, stipulation to pay interest, and contract of partnership. These contracts require formality or must be in a public document or writing. Article 1357 discusses about the requirement of law to a certain form for the convenience of the parties as against third persons wherein the special form is indispensable since they are allowed to file a complaint to enforce a contract and to observe its proper form. Article 1358 talks about the contracts that must appear in a public document which means that the contract should be notarized. All other contracts, public and private, where amount involved exceeds P500.00 must appear in writing. The contracts that must be registered are sale or transfer of large cattle and chattle mortgage. Article 1380 talks about rescissible contracts which is a valid contract, although defective, because it gives the aggrieved party the remedy of rescission. This article also states the requisites of rescission. Article 1381 discusses about the types of rescissible contracts which are contracts entered into in behalf of wards or a person under guardianship, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and contracts which refer to things under litigation. According to Article 1382, payments are rescissible if made in a state of insolvency because the insolvent person is suspended of all payments. Insolvency of the debtor must be judicially declared. According to Article 1383, rescission is only a subsidiary remedy because it can be availed only if there is no other legal means aside from rescinding. According to Article 1384, rescission is only to the extent of creditor’s unsatisfied credit. The effect of rescission is a conservative application wherein if partial rescission can be resorted to, there is no need for complete rescission. The reason of rescission is to preserve the contract and not to extinguish it. Article 1385 talks about the obligation of the parties upon complete rescission which is to return to each other the object of the contract with its fruits and the price with legal interest. This article also states the circumstances where rescission is not allowed. Article 1386 talks about a rescissible contract which is the contracts entered into in behalf of ward or absentees. In this type of contract, rescission cannot take place even if there is lesion or not and its validity is approved because it is presumed by the law that the court acts in the interest of the wards or absentees. Article 1387 discusses about alienations presumed in fraud of creditors which are alienation by gratuitous title and onerous title. This article also states the circumstances as badges of fraud. According to Article 1388, the purchaser in bad faith must return what he has bought if the sale is rescinded, and if impossible to return, must indemnify it. On the other hand, if there are two or more person liable, the first person should be liable first. Article 1389 talks about the period for filing an action for rescission of a contract and the persons entitled to bring action. As a general rule, the action to claim rescission must be commenced within four years from the date the contract was entered into except when the person is under guardianship where the beginning period is the termination of incapacity, and when the person is an absentee where the beginning period is when the domicile is known. Persons entitled to bring action are the injured party or the defrauded creditor, his heirs, assigns, or successors in interest, and the creditors of the above entitled to subrogation.
Castillo, Rikka Marie B. 1BSA-A PNC Chapter 3 - Forms of Contracts Article 1356 - Contracts are binding whatever form they are entered into except when the law requires a contract be in some form to be valid, to be enforceable, or proved in a certain way, and the convenience of the parties or for the purpose of affecting the third person. Article 1357 - Article that allows a certain contract be executed for the convenience of the parties or to make it affective as against the third person. Article 1358 - This article contains what should appear in public document which is act and contracts, cession, reputation or renunciation of hereditary rights, power to administer property, and cession of actions. Chapter 6 - Rescissible Contracts Article 1380 - A contract that is validly agreed upon can be rescinded. Rescissible contracts are a valid contract but recission is granted by law. Article 1381 - Types of Rescissible Contracts Article 1382 - This states that when a debtor is in a state of insolvency but still initiates to settle debts, the contract may be rescinded. Article 1383 - This article states that recission can only be an option when proved that there is no more legal remedy aside from rescission. Article 1384 - This article states that rescission can only be up to the extent to satisfy the creditor’s unsatisfied credit. Article 1385 - This article states that if a contract is rescinded, parties must return the object of the contract, fruits, and the price thereof with legal interest. Article 1386 - When the contract is validated by the court, rescission of contract shall not take place. Article 1388 - This article states that if the sale is rescinded, the purchaser that acts in bad faith must return the object and if it is impossible for him to return it, he must indemnify the former. Article 1389 - This article contains the period of filing action for rescission which is 4 years. There are two exceptions if the person is under guardianship and absentees. Thank You for the video, Atty!
Laarni Joy Cabanela 1BSA-A Pamantasan ng Cabuyao Good Day, Atty. Here is the summary of what I have learned in this video. Art. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised. Art. 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. Art. 1358. The following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding from an act appearing in a public document. All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No. 2 and 1405. Art. 1359. When, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed. If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the proper remedy is not reformation of the instrument but annulment of the contract. Art. 1360. The principles of the general law on the reformation of instruments are hereby adopted insofar as they are not in conflict with the provisions of this Code. Art. 1361. When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed. Art. 1362. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. Art. 1363. When one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed. Art. 1364. When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed. Art. 1365. If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper. Art. 1366. There shall be no reformation in the following cases: (1) Simple donations inter vivos wherein no condition is imposed; (2) Wills; (3) When the real agreement is void. Art. 1367. When one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation. Art. 1368. Reformation may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns. Art. 1369. The procedure for the reformation of instrument shall be governed by rules of court to be promulgated by the Supreme Court. Art. 1370. If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control. If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former. Art. 1371. In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered. Art. 1372. However general the terms of a contract may be, they shall not be understood to comprehend things that are distinct and cases that are different from those upon which the parties intended to agree. Art. 1373. If some stipulation of any contract should admit of several meanings, it shall be understood as bearing that import which is most adequate to render it effectual. Art. 1374. The various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly. Art. 1375. Words which may have different significations shall be understood in that which is most in keeping with the nature and object of the contract. Art. 1376. The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. Art. 1377. The interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity. Art. 1378. When it is absolutely impossible to settle doubts by the rules established in the preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the least transmission of rights and interests shall prevail. If the contract is onerous, the doubt shall be settled in favor of the greatest reciprocity of interests. If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void. Art. 1379. The principles of interpretation stated in Rule 123 of the Rules of Court shall likewise be observed in the construction of contracts. Art. 1380. Contracts validly agreed upon may be rescinded in the cases established by law. Art. 1381. The following contracts are rescissible: (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; (3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them; (4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority; (5) All other contracts specially declared by law to be subject to rescission. Art. 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible. Art. 1383. The action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. Art. 1384. Rescission shall be only to the extent necessary to cover the damages caused. Art. 1385. Rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore. Neither shall rescission take place when the things which are the object of the contract are legally in the possession of third persons who did not act in bad faith. In this case, indemnity for damages may be demanded from the person causing the loss. Art. 1386. Rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts. Art. 1387. All contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation. Alienations by onerous title are also presumed fraudulent when made by persons against whom some judgment has been issued. The decision or attachment need not refer to the property alienated, and need not have been obtained by the party seeking the rescission. In addition to these presumptions, the design to defraud creditors may be proved in any other manner recognized by the law of evidence. Art. 1388. Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them. If there are two or more alienations, the first acquirer shall be liable first, and so on successively. Art. 1389. The action to claim rescission must be commenced within four years. For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former's incapacity, or until the domicile of the latter is known. Thank you, Atty.
Ortega, Annaztacia 1 BSA - A Good day atty, here are the summary of what I've learned in your lesson. In Article 1356, valid contracts can be legally rescinded under certain circumstances. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised. Contracts are binding upon the contracting parties in whatever form they may have been entered into as long as all the essential requisites for their validity are present. The form of a contract is essential: When the law requires that a contract be in certain form for its validity; (refers to solemn or formal contracts) and when the law requires that a contract be in certain form for its enforceability. (refers to the agreements covered by the Statute of Frauds. Moreover in Article 1357, if the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. When form is required by law for its convenience only and the contract is in not that form, contracting parties may compel each other to observe that form, once the contract required by the law but if not not essential for validity .of the contract then this art. cannot be made. However, according to Article 1358, the following must appear in a public document: (1) acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein are governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding from an act appearing in a public document. All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No. 2 and 1405. In addition, according to Article 1380, contracts validly agreed upon may be rescinded in the cases established by law. A rescissible contract is one which contains all the essential requisites of a contract which make it valid, but by reasons of injury or damage to either of the contracting parties or to third person, such as creditors, may be rescinded. The characteristics of a rescissible contract are it has all the elements of a valid contract; it has a defect consisting in an injury to one of the contracting parties or third person, generally in the form of economic damage or lesion, fraud, alienation of property subject of case in court without the consent of the litigants or of the court; it is valid and effective until rescinded; it can be attacked only directly, either by one of the contracting parties or by an affected third person, who is injured or defrauded by the contract; and it is susceptible of convalidation only by prescription. Ratification process does not apply. Moreover in Article 1381, the following contracts are rescissible: (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; (3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them; (4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority; (5) All other contracts specially declared by law to be subject to rescission. Hence, according to Article 1382, Rescission under Article 1191 is a result of what people usually call as breach of contract. In reciprocal contracts, parties have mutual obligations and the obligation by either party to do, not to do or to give something is actually the cause for the other party to agree to also do, not do or give something in return. So when one does not perform his obligations under his contract, the other party has remedies under the law. Under the said Article 1191, the injured party can choose between fulfillment and rescission, with payment of damages in either case. This means that the injured party can either compel the guilty party to perform his part of the contract and claim for damages as a result of the breach, or it can rescind the contract and also claim for damages and in article 1383, an action to rescind a rescissible is just subsidiary, whih means, it cannot be instituted except when the party suffering damages has no other legal means to obtain reparation for damages suffered. Therefore it is necessary for the plaintiff to have exhausted all other legal means to obtain reparation. Otherwise, action will not prosper. Also, in article 1384, Rescission shall be only to the extent necessary to cover the damages caused. Moreover, in article 1385, this article provides for mutual restitution where there is delivery on both sides and both parties must return what they had received from each other. It is not applicable in cases where the creditor rescinds the contract executed by his debtor in favor of other persons, because the creditor will not have anything to restore in the first place since he did not receive anything from the debtor. Also, in article 1386, the following contracts are rescissible: (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number. Exception to Article 1386 are: Instances where there is strong, clear and convincing evidence to show that the contracts entered into by the guardians and representatives which have been approved by the court did not observe due process. Opposition timely made before the court. And the court has no jurisdiction over the case. In article 1387, all contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation. Also, in article 1388, The person will be liable to return the property to the particular creditor/s who had successfully instituted the complaint for rescission. Lastly, in article 1389, The action to claim rescission must be commenced within four years. For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former’s incapacity, or until the domicile of the latter is known. That's all. Thank you po.
Candido, Hannah Mae P PNC-1BSA-A Good Day Atty! Below is the summary on what I've learned on the video lecture We're now on the Chapter 2 Form of Contracts Under Article 1356 the form of contract is a manner in which a contract is executed or manifested. It discussed the general rule and enumerate its exception. This article also show the list of contract which required to be executed in a certain way for its validity. The Article 1357 states that law may also require a certain form for the convenience of the parties in order to make effective, as against third persons. Article 1358 enumerates the following what must appear in a public document. We should take note that all other contracts where amount involve exceeds Five Hundred (500) pesos must appear in writing, even private one. The contract that must be registered are (1) sale or transfer of large cattle; (2) chattel mortgage. After Form of Contracts, we're now on defective contracts. The first form of Defective Contracts is in under Chapter 6 Rescissible Contracts. The Rescissible Contracts under Art.1380 is that valid agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. The meaning of rescission is provided which means a remedy granted by law in order to secure reparation of damages; the requisites is also discussed here. The types of Rescissible Contracts are mentioned under Art 1381. The other instances where contracts are rescissible is specify in this article. The Art 1382 points out that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Under Art 1383 rescission is only subsidiary where can be availed only when proved that there is no other legal remedy aside form rescission, even if the contract is considered rescissible under Art 1381. We should take down that if the damage is repaired, rescission cannot take place. Article 1384 shows what is the extent, effect, and reason of rescission. The effect of rescission and when rescission are not allowed is discussed under Art 1385. If the party who demands rescission cannot return what he is obliged to and if the property is legally in possession of a third person who acted in good faith is an example of rescission that are not allowed. The Art 1387 provides alienations presumed in fraud of creditors (1) alienations by gratuitous title; (2) alienations by onerous title. This article also enumerate the circumstances denominated as badges of fraud. Under Art. 1389, action to claim rescission must within four (4) years from the date the contracts entered into except for the persons under guardianship (as it is from the termination of incapacity) and for absentees (as it is from the time the domicile is known). This ends the summarization. Thankyou and Godbless Atty!
Abion, Francine Joyce P. 1BSA-B Pamantasan ng Cabuyao Good day, Atty. Here is the summary of my learning from the video. I've taken note that contracts are valid and enforceable. Some of them need to get executed in a certain way of their validity. Formalities are necessary, and some contracts must have public documentation, in written form, and must be in public instruments. The law also mandates that some contracts get conducted in specific ways to benefit the parties against a third party. Both actions to enforce the agreement and the claim to order the other party to observe formalities required by law are permissible (Arts. 1356-1358). For chapter 6, I just learned that rescissible contracts are defective but valid contracts with the fairness of equity given to the aggrieved party the remedy of rescission (cancellation of contract). The rescission I previously stated is the restoration of things or the relief to secure reparation of damages. There are four types of rescissible contracts: entered into on behalf of wards or persons under guardianship, agreed upon in representation if absentees, undertaken in fraud of creditors (act of the debtor trying to alienate his properties or the fraudulent alienation of property of the debtor), and contracts which refer to things under litigation. The law provided other instances where contracts are rescissible like: if a person dies and his properties might be transferred to their heirs at least one-fourth of the share per co-owners, if the lessee or lessor does not provide their obligations in a contract of lease, and when the real estate did sell for less than or more than one-tenth of the agreed-upon amount in a deed of sale. Also, Article 1383 informed me that rescission is only subsidiary (next to priority) or may get used only when proven that there are no other legal options than rescinding. The applicability of a rescissible contract is a conservative application (if reparation has already been made before the rescission, rescissible contract will not take place). Lastly, in filing a rescission, it must be done within four years except when the person is under guardianship or is an absentee. Thank you for this very informative video lecture, Sir. Have a nice day, Atty.
Momo, Margie Mae T. 1BSA-B Pamantasan ng Cabuyao Article 1356 Form of contract - manner a contract is executed or manifested General Rule: Contracts are binding and enforceable whatever may be the form Exception: When the law requires the contract to be in some form to be (1) valid, (2) enforceable or proved in a certain way, (3) and for the convenience of the parties or for the purpose of affecting third persons. Article 1358 All other contracts where the amount exceeds 500 pesos must appear in writing, even private ones. A contract that must be registered: 1. Sale or transfer of large cattle 2. Chattel mortgage Article 1380 Rescissible Contracts - validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Rescission - remedy granted by law to secure reparation of damages Requisites of rescission: 1. Contract must be validly agreed upon. 2. Lesion or pecuniary prejudice to one of the parties or to a third person. 3. Rescission must be based upon a case especially provided by law. 4. There must be no other legal remedy to obtain reparation for the damage. 5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract. 6. Object of the contract must not legally be in the possession of third persons who did not act in bad faith. 7. Period for filing must not have prescribed. Article 1381 Types of rescissible contracts: 1. Entered into in behalf of wards 2. Agreed upon in representation of absentees 3. Undertaken in fraud of creditors 4. Refer to things under litigation Requisites of Rescission of Contracts Undertaken in Fraud of Creditors: 1. Existing credit prior to rescission, though it is not yet due or demandable. 2. Fraud on part of the debtor (presumed or proved). 3. Creditor cannot recover credit, not being required that debtor is insolvent. Other Instances where Contracts are Rescissible: 1. Partition - when any of the co-heirs received things valued at least one-fourth lesser than the share he is entitled. 2. Lessor or lessee should not comply with their obligations. 3. Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Article 1382 Payments made in a state of insolvency -> the debtor could not be compelled. When the debtor is insolvent, there must be a judicial declaration. Article 1383 Rescission is only subsidiary - availed only when proved that there are no other legal means aside from rescinding Article 1384 Rescission (1) Extent - only to the extent of creditor's unsatisfied credit (2) Effect - entire contract need not to be set aside if the damage can be repaired or covered by partial rescission. (3) Reason - the law is to preserve or respect the contract, not to extinguish it. Article 1385 When the contract is rescinded, the object with its fruits and price with legal interest must be returned. When rescission is not allowed: 1. Party who demands rescission cannot return what he is obliged to. 2. Property is legally in possession of a third person who acted in good faith.
Article 1387 Alienations Presumed in Fraud of Creditors: 1. Alienation by gratuitous title 2. Alienation by onerous title Circumstances denominated as badges of fraud: 1. Fictitioud or inadequate consideration of the conveyance 2. Transfer made by a debtor after suit has begun and is pending against him. 3. Sale upon credit by an insolvent debtor. 4. Transfer of all property by a debtor when he is insolvent. 5. Transfer is made between father and son when present some or any of the above circumstances. 6. Failure of the vendee to take possession of all the property. 7. It was known to the vendee that the vendor had no property other than that sold. Article 1388 Purchaser in bad faith must return the same, if impossible, he must indemnify it. Article 1389 General Rule: action to claim rescission must be commenced within four years from the date the the contract was entered into. Exceptions: Person Beginning Period 1. Under guardianship Termination of incapacity 2. Absentees Domicile is known Persons entitled to bring action: 1. Injured party/defrauded creditor 2. Heirs, assigns, successors in interest 3. Creditors of the above-entitled to subrogation. Thank you, Atty!
Rivas, Krisha Eunice G. 1BSA-A Pamantasan ng Cabuyao Good day Attorney, here are the summary of what I learned from this video. Chapter 3 Forms of Contracts Article 1356- the form of a contract refers to the manner in which a contract is executed or manifested. The contract may be oral, or in writing, are partly oral and partly in writing. Informal four common our simple contract or that which may be entered into in whatever form provided all the essential requisites for their validity are present. Formal or solemn contracts for that which is required by law for its efficacy to be in a certain specified form. The general rule is contracts are binding and therefore enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into. Article 1357- in certain cases, a certain form example public instrument is required for the convenience of the parties in order that the contract may be registered in the proper registry. Article 1358- the public document is only required on the convenience and greater protection of the parties and to make the contract binding as against third persons. It insures its efficacy so that after the existence of the act or contract has been admitted, party bound may be ordered by the court in which the action or suit is filed to execute the document. Chapter 6 Rescissible Contracts Article 1380- rescissible contracts are those validly agreed upon because all the essential elements exist and, therefore legally effective, but in the case is established by law, the remedy of recession is granted in the interest of equity. Rescission is a remedy granted by law to the contracting parties and sometimes even to third person in order to secure reparation of damages caused them by a valid contract. Article 1381- cases of rescissible contracts; contracts entered into in behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refer to things under litigation and other instances. Article 1382- under this article, the payments must have been made or obligation to whose fulfillment a debtor could not be compelled at the time they were affected. Article 1383- the session is not a principal remedy but it is only subsidiary. Article 1384- the recession shall only be to the extent of the creditor's and unsatisfied credit. Article 1385- the object of the contract with its fruits and the price thereof with legal interest, return to each other. Article 1386- if a contract entered into in behalf of absentee has been approved by the court, recession cannot take place because it is valid whether there is legit or not. Article 1387- alienation by gratuitous title, alienation by onerous title, it is alienation presumed in fraud of creditors. Article 1388- the purchaser in bad faith, who acquired object of the contract alienated in fraud of creditors , must return the same if the sale is rescinded. Article 1389 - as a general rule , the action to claim rescission must be commenced within four years from the date the contract was entered into. The exemptions are; for persons under guardianship , the period shall begin from the termination of incapacity and for absent is , from the time the domicile is known. The Actions for the session may be brought by: the injured party or the defrauded creditor; his heirs comma assigns , or successors in interest or the creditors of the above entitled to subrogation. Thank you Attorney.
Evangelista, Shane G. 1BSA-A Here are some of my takeaways in this video lecture; The video lecture is about the form of contracts and rescissible contract. Form of contract is the manner in which a contract is executed or manifested. Contracts shall be obligatory in whatever form maybe, provided that all the essential requisites for the validity are present. Rescissible contracts are those validly agreed upon because all the essential elements exist and therefore legally effective, but in the cases established by law, the remedy of rescission is granted in the interest of equity. Contracts may be rescinded in the cases established by law.
Geminiano, Hanna Rian T. 1BSA-A Good day Atty.! Here is the summary of my learnings for this video lecture: Art. 1356 is about form of a contract which refers to the matter in which a contract is executed or manifested. Its general rule is that contracts are binding and enforceable reciprocally by the contracting parties provided all the three essential requisites for their validity are present, except when the law requires them to be in some form to be valid or enforceable. Art. 1357 states that the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. It is not indispensable since they are allowed by law to compel the other to observe the proper form and this right may be exercise simultaneously with the action to enfore the contract. Art. 1358 presents what must appear in a public document. They are: acts and contracts which have their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No.2 and 1405; The session, reputation or renunciation of rights or those of conjugal partnership of gains; The power to administer property or any other power which has for its object an act appearing or which should appear in public document, or should prejudice a third person; and the cession of action of rights proceeding from an act appearing in a public document Art. 1380 stated that rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. It also discussed the requisites of rescission. Art. 1381 enumerated the types of rescissible contracts. They are: Contracts entered into in behalf of wards, agreed upon in representation of absentees, undertaken in fraud of creditors, and which refer to things under litigation. It also talks about the requisites of rescission of contracts undertaken in fraud of creditors. Art. 1382 refers to the payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compeled. When a debtor is insolvent, it must be judicially declared. Art. 1383 stated that rescission is only subsidiary. It means that it can be availed only when proved that there is no other legal means aside from rescinding, dven such contract is covered by Art. 1381 Art. 1384 discussed about the rescission is only to the extent of creditor's unsatisfied credit. Its effect is the entire contract need not be set aside if damage can be repaired or covered by partial rescission. The reason is that the law is to preserve or respect the contract, not to extinguish it. Art. 1385 is about the effect of rescission. There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Art. 1386 stated that in contracts entered into in behalf of ward or absentee, rescission can take place when the court approved its validity, even if there is lesion or not. It is because the law presumes that court acts in the interest of the ward or absentee. Art. 1387 presented the alienations presumed in fraud of creditors. It also presented circumstances thay could be denominated as badges of fraud. Art. 1388 stated that the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. When there are two or more, first shall be liable first, and so on, successively. Art. 1389 - this article's general rule is that the action to claim rescission must be commenced within four years from the date the contract was entered into with exceptions when under guardianship and when there is absentees.
Galang, Leigh Nicole S. Pamantasan ng Cabuyao 1 BSA - A A rescissible contract is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party. The court can therefore rescind, or set aside, the contract for equitable reasons. Valid contracts can be legally rescinded under certain circumstances. Types of contracts that are rescissible under Article 1381 include: Any contracts entered into by guardians when their wards suffer lesion by more than one-fourth of the items that are the object thereof. A contract agreed to in representation of an absentee, if the absentee suffered the lesion mentioned above. Any contracts relating to fraud of creditors when the creditors cannot collect what is owed to him or her in any other manner. Anything in litigation if it was entered into by the defendant without the knowledge or approval of the litigants themselves or a competent judicial authority. Any other type of contract the law declares subject to rescission. Under Article 1382, if one party is unable to pay debts owed, the injured party can rescind the contract. Rescission is only necessary to the extent that it is required to cover damages. The offending party must return the items that were the subject of the contract, along with interest. Therefore, rescission can only occur if the person can return what he or she is required to return. If those things that are the subject of the contract are in the legal possession of a third party who wasn't acting in bad faith, rescission won't take place. In this situation, the injured party can demand reimbursement of damages from the person or persons who caused the loss. To rescind a contract for fraud of creditors: Credit must exist prior to the contract's creation. There must be an element of fraud, or at least the intent to commit fraud, to the creditor seeking rescission. Creditors cannot legally collect their credit. The object in dispute cannot be in the hands of a third party who hasn't acted in bad faith. Defective contracts can be classified in several ways: Voidable and Annullable Contracts: These can be defective if one party was incapable of giving consent or if consent was granted by mistake, threat, violence, fraud, or undue influence. Unenforceable contracts: These are contracts that can't be enforced for a variety of reasons. Void or Inexistent Contracts: These have no legal effect because they don't legally exist. Other defective contracts include those that are partially ineffective and partially valid. They don't fall under any of the above classifications, are only ineffective with respect to certain persons, but can be effective to other parties. These are known as Relatively Ineffective Contracts.
Hello, Atty. Narciso Reyes Jr.! Here are my takeaways for this discussion about Forms of Contract and Rescissible Contract. First, from the Chapter 2 Form of Contracts - Article 1356, I have learned that contracts are not required to be reduced in a certain form as a general rule but it has exceptions required by law. Another, some forms of contract needs to be in a public instrument or in writing. If it is in a public instrument, the agreement must be reduced in writing and is duly authorized by a notary public. Also, that public document must have the following information stated in article 1358. Now, let's proceed to the things that I have gained from Chapter 6 Rescissible Contracts. In this part of the lecture, I have understood that rescissible contract is a form of defective contract in which it is validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. When we say rescission, it is a remedy given by law to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract but, it has requisites that need to be considered. Second, I was also familiarized with the types of rescissible contracts and to its requisites when undertaken in fraud of creditors. In addition, I was acknowledged to other instances where contracts are rescissible. Third, I was able to connect the things that I have learned from Financial Rehabilitation and Insolvency Act wherein an insolvency debtor could not be compelled but it must be judicially declared which is also stated in the article 1382 of this lecture. Fourth, I have learned that rescission is just secondary and it can be availed only when proved. Another, the reason why rescission is important to the law, it is because they are aiming to preserve the contract and not to extinguish it. Also, rescission is not always available to be used as remedy because it has restrictions that we need to observe. And last, as to the general rule: the action to claim rescission must be commenced within four years from the date the contract was entered into. So sir, this ends the summarizarion of my learning. Thank you for your time. Stay safe and may God bless you po!🙏🏻❤
Jerwin Pagela | 1BSA-A (PNC) Here are my key takeaways and the notes I have jotted down while watching this video lecture about Contracts. Chapter 2: Form of Contracts Article 1336 - In this article the form of contracts is discussed the same as the rules regarding it. It is said in the general rule that whatever the form of contract a party has entered into, as long as all the three essential requisites for the validity are present, the contract is binding. Also, the law has the power to state the validity or invalidity of a contract. Article 1357 - Sometimes, for the convenience of both of the parties the law may require a certain form. Article 1358 - In a public document, there are some of the things that must appear in it. These things are a requirement to be stated in a public document.There are also some contracts that's must be registered which are sale or transfer of large chattle and a chattel mortgage. Chapter 6: Rescissible Contracts Article 1380 - This article explains the definition of rescissible contracts. These contracts are contracts that are although defective are still considered valid. Requisites of rescission are also stated in this article. Article 1381 - There are four types of rescissible contracts.First are contracts entered into in behalf of wards.Second, contracts agreed upon in representation if absentees. Third are contracts undertaken in fraud of directors. And lastly, contracts which refer to things under litigation. Article 1382 - the debtor could not be compelled if the payments are made in a state of insolvency for obligations. Article 1383 - Rescission can be availed only when prove that there is no other legal remedy than rescission. Even though it is stated that the contract is rescissible, it doesn't really mean that rescission of contracts is the one to be used. Article 1384 - The extent effect and reason for rescission are stated in this article. Article 1385 - The object of the contract with its puts and the price with legal interest should be rendered by the parties when the court declares a contract is rescinded. Instances where rescission is not allowed are also present in this article. Article 1386 - even though there is lession or not, contracts entered into in behalf of war the absentees,a rescission cannot take place when the court approved its validity. Article 1387 - Alienation by gratuitous title or by onerous title are alienations that are presumed in fraud of creditors. Article 1388 - A purchaser in bad faith can get indemnified if he wasn't able the return the same if the sale is rescinded due to any cause.When there are two or more, the first should be liable first and so on, successively. Article 1389 - An action to claim rescission must be commenced within 4 years from the date contract was entered into. Person entitled to bring action: 1. The injured party or the defrauded creditor. 2. His heirs, assigns, or successors in interest. 3.The creditors of the above entitled to subrogation.
FRIAS, RAYAH 1BSA-A Pamantasan ng Cabuyao CHAPTER 3 - FORM OF CONTRACTS ART. 1356. Form of Contract - the manner in which a contract is executed or manifested. Contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. Contracts are not required to be reduced in a certain form. It is required to be executed in a certain form to be valid. Public Instrument - agreement must be reduced to writing and it must be duly notarized by a notary public. Formalities requires by law: Contracts required to be executed in a public instrument - Donation of real property; Contract of partnership Other contracts require merely that the agreement must be reduced to writing: Donation of personal property the value of which exceeds P5, 000.00; Sale of land through an agent; Stipulation to pay interest ART. 1357. A contract has not been reduced in writing then a party may compel the other party to observe the proper formalities required by law. Remedy if a party would want to implement/ execute the contract but the contract has not been reduced into the formalities required by law - both action to enforce the contract and the action to compel or to order the other party to observe for the proper formalities required by law is allowed. observe for the proper formalities required by law is allowed. ART. 1358. The following must appear in a public document: Acts and contracts which have for their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2, and 1405. The session, reputation or renunciation of rights or of those of conjugal partnership of gains. The power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should prejudice a third person. The cession of actions of rights proceeding from an act appears in a public document. All other contracts where amount involved exceeds P500.00 must appear in writing, even private one. CHAPTER 6 - RESCISSIBLE CONTRACTS ART. 1380. Rescissible Contracts - Although defective is actually valid. Although it is a valid contract, the law gives the aggrieved party the remedy of recession (cancellation of the contract) in the interest of equity. Contract wherein there is an economic damage to one of the parties or to a third person. Requisites of Rescission The contract must be validly agreed upon. There must be lesion or pecuniary prejudice to one of the parties or to a third person. The rescission must be based upon a case especially provided by law. There must be no other legal remedy to obtain reparation for the damage. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract. The object of the contract must not legally be in the possession of their persons who did not act in bad faith. The period for filing the action for rescission must not have prescribed, ART. 1381. 4 Types of Rescissible Contracts: in behalf of wards; in representation of absentees; undertaken in fraud of creditors; and things under litigation Requisites of Rescission of Contracts Undertaken in Fraud of Creditors: there must be a debt or an obligation prior to rescission, it does not matter whether the obligation is due or demandable There must be fraud/deceit on part of debtor (maybe presumed or proved) Creditor cannot recover his credit, not being required that debtor is insolvent Other Instances where Contracts are Rescissible: Partition; If the lessor or lessee should not comply with their obligations; The vendee may rescind when the real estate sold is less than or exceeds 1/10 of the agreed price ART. 1382. When a person is in the state of insolvency and despite insolvency, the debtor would still settle his obligations. That payment made by an insolvent debtor is rescissible. In relation to the financial rehabilitation and insolvency act, if a person files a petition for insolvency to the regional trial court and the regional trial court issues a commencement order. Once a commencement order is issued by the insolvency court or the court handing the insolvency proceedings - suspension of all payments - the debtor may no longer touch his properties in order to settle the debts because the debts will be paid in accordance with the rehabilitation plan as approved by the court. Any and all payments made by an insolvent debtor for obligations to whose fulfilment the debtor could not be compelled, then that payment becomes rescissible. ART. 1383 There are other remedies that an aggrieved party can avail off then rescission would not be an available remedy - because rescission is only subsidiary - only available when there is no other legal means to aid the aggrieved party. If damage is repaired, rescission cannot take place. (When a party suffered a lesion or economic damage of ¼ and that damage has been repaired then rescission cannot take place - no longer an available remedy. ART. 1385. Effect of Rescission There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. (If there is total rescission) ART. 1387. Circumstances denominated as badges of fraud (hallmarks of fraud): The consideration of conveyance is fictitious or inadequate. (ex. a house and lot has been transferred or sold for half of its price) A transfer made by a debtor after suit has begun and is pending against him. (ex. if a person has been sued in court or a case has been filed against him and subsequently after the filing of the complaint that person begins to alienate/transfer his property to the another person while the case is pending then that circumstance then the creditor can rescind the contract) A sale upon credit by an insolvent debtor. The transfer of all his property by a debtor when he is insolvent or greatly embarrassed financially. The transfer is made between father and son, when there are present some or any of the above circumstances. The failure of the vendee to take exclusive possession of all the property. It was known to the vendee that the vendor had no property other than that sold. ART. 1388. The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. ART. 1389. The action to claim rescission must be commenced within 4 years from the date contract was entered into. Exceptions: Under guardianship - 4 years will commence upon the termination of incapacity Absentees - Domicile is known
AROMIN, MARIA CONCEPCION 1BSA-A Pamantasan ng Cabuyao Article 1356, it gives the rules regarding form of Contracts. In fact, as a general rule, contracts are not required to be reduced in any specific form except (1) when the law requires a Contract be in some form to be valid(2)" "to be enforceable or proven in a certain way(3) " " for the convenience of the (other) parties. Article 1357- it is said that there are times that the law will require a certain form for the ease of the parties to make it more effective, as against third person. Article 1358 clearly stated that the following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person. Article 1360 refers to the principles of the general law on the reformation of instruments are hereby adopted insofar as they are not conflict with the provisions of this Code. Article 1361 stated that when a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed. Article 1362 expressed that if one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. Article 1363, on this article, when one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed. Article 1364 stated that when through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed. In Article 1365, if two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper. Article 1366, there shall be no reformation on simple donations inter vivos wherein no condition is imposed, wills and when the real agreement is void. Article 1388 Purchaser in bad faith must return the same, if impossible, he must indemnify it. Article 1389 General Rule: action to claim rescission must be commenced within four years from the date the the contract was entered into. Article 1367 The party who brings an action to enforce contract cannot subsequently ask for its reformation. Article 1368 These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled. Article 1370 If the word appear to be contrary to the evident of the parties the latter shall prevail over the former. Article 1371 In order to judge the intention of the contracting parties their contemporaneous and subsequent acts shall be principally considered. Article 1372 However general the terms of a contracts may be they shall not be understood to comprehend things that are distinct and cases that are different from those upon which parties intended to agree. Article 1373 When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation. Article 1374 A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instruments and not from particular words, phrases, or clauses. Article 1375 Words which may have different signification shall be understood in that which is most in keeping with the nature and objects of the contracts Article 1376 The usage or custom of the place shall be borne in the mind interpretation of the ambiguities of the contracts , and shall fill the omission of stipulation which are ordinarily established Article 1377 Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity Article 1378 If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules. Article 1379 The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts.
Ellorda, Rishlene Jane S. 1 BSA-B PNC Below are the knowledge I gained in this video: In Article 1356, it defined form of a contract and it refers to the manner in which a contract ia executed or manifested. Article 1357, the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. The special form is not indispensable since they are allowed by law to compel the other to observe the proper form and this may be exercise with the action to enforce the contract. In Article 1358, the following must appear in a public document; 1. Acts and contract which have for their object, the creation, transmission, notification, or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No 2, and 1405. 2. The session, reputation or renunciation of here with rights or those of conjugal partnership of gains. 3. The power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should appear in public document, or should prejudice a third person. 4. The cession of actions of rights proceeding from an act appear in public document. Chapter 6: Recissible Contracts Article 1380, Recissible contracts are those validly agreed upon because all essential elements exist therefore legally effectibe but remedy of recission is granted in the interest of equity. Recissiom is a remedy granted by law in order to secure reparation of damages, by means of restoration of things for their same condition prior to the celebration of said contract. Article 1380, types of recissible contracts; 1. Contracts entered into in behalf of wards 2. Contracts agreed upon in representation if absentees 3. Contracts undertaken in fraud of creditors 4. Contracts which refer to things under litigation. Other instances where contracts are recissible; 1. Partition- when any of the co-heirs received things valued at least one-fourth than the shared he is entitled. 2. If the lessor or lessee should not comply with their obligations. 3. Vendee may rescind when the real estate sold is less than ir exceeds one-tenth of the agreed price. Article 1382, Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Article, 1383, Recission is only subsidiary, can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art. 1381. Article 1385, Effect of recission, there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Article 1386, in contracts entered into in behalf of ward or absentee, recission cannot take place when the court approved its validity, even there is lesion or not. Article 1387, Alienations presumed in frauf of creditors; 1. Alienation by gratuitous title 2. Alienation by onerous title Article 1388, the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. Article 1389, General rule, the action to claim recissiom mustbbe commenced within four years from the date the contract was entered into. Persons entitled to bring action: 1. The injured party or defrauded creditor 2. His heirs, assigns, or successors in interest 3. The creditors of the above entitled to subrogation Thank you, Attorney!
Lagera, Rinalyn A 1BSA A PNC Good day atty THESE ARE MY TAKEAWAYS FROM YOUR VIDEO. Article 1356 form of a contract refers to the manner in which a contract is executed or manifested. Rules regarding form of contract: contracts r binding and therefore enforceable reciprocally by the contracting parties whatever maybe the form in which the contract has been entered into. Article 1357: the law May require a certain form for the convenience of the parties in order to make effective as against third person's. Article 1358: All contracts where amount involved exceed five hundred pesos must appear in writing even private one. Article 1380 it's here that rescissible contracts are those validly agreed-upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Moreover it discuss here there meaning of rescission. It is a remedy granted by law in order to secure the reparation of damages. Article 1381; There are types of rescissible contracts. 1. Contracts entered into in behalf of wards. 2. Contracts agreed upon in representation if absentees. 3. Contracts undertaken in fraud of creditors. 4. Contracts which refer to things under litigation. Article 1382; Payments made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled. Article 1383 rescission is subsidiary. Article 1385 the effect of rescission there is no obligation to restore if nothing has been received when the court declares a contract rescinded. A contract rescinded the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. article 1386: in contracts entered into behalf of ward or absentee precision cannot take place when the court approved its validity even there is lesion or not. Article 1388 when there are two or more first shall be liable and so on successively. Article 1389 the general rule here is the action to claim rescission must be commended within four years from the date the contract was entered into. Thank you sir! 😊
Galuz, Lotus Anne A. 1BSA - A Article 1356 Form of contract - manner a contract is executed or manifestedArticle 1357 The law will require a certain form for the ease of the parties to make it more effective, as against third person. Article 1358. This article covers the things that should appear in a public document. Article 1359 Reformation is the remedy allowed by law by means of which a written instrument is amended or rectified Article 1360 The principle of the general law on the reformation of instruments are hereby adopted. Article 1361 Mutual mistake is mistake of fact that is common to both parties of the instrument which causes the failure of the instrument to express their true intentions. Article 1362 The right to ask for reformation is granted only to the party who was mistaken in good faith. Article 1363 Remedy of reformation may be availed of the party who acted in good faith. Article 1364 Neither party is responsible for the mistake. Hence, either party may ask for reformation. Article 1365 The reformation of the instrument is proper: otherwise, the true intention of the parties would be frustrated. Article 1366 There shall be no reformation on the following cases: Simple donations inter vivos wherein no condition is imposed, wills, and when the real agreement is void. Article 1367 The party who brings an action to enforce contract cannot subsequently ask for its reformation. Article 1368 These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled. Article 1370 If the word appear to be contrary to the evident of the parties the latter shall prevail over the former. Article 1371 In order to judge the intention of the contracting parties their contemporaneous and subsequent acts shall be principally considered. Article 1372 However general the terms of a contracts may be they shall not be understood to comprehend things that are distinct and cases that are different from those upon which parties intended to agree. Article 1373 When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation. Article 1374 A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instruments and not from particular words, phrases, or clauses. Article 1375 Words which may have different signification shall be understood in that which is most in keeping with the nature and objects of the contracts Article 1376 The usage or custom of the place shall be borne in the mind interpretation of the ambiguities of the contracts , and shall fill the omission of stipulation which are ordinarily established Article 1377 Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity Article 1378 If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules. Article 1379 The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts. Article 1380, Contracts validly agreed upon may be rescinded in the cases established by law. Article 1381 refers to contracts entered into behalf of wards- a ward is a person under guardianship by reason of some incapacity. 1382, if one party is unable to pay debts owed, the injured party can rescind the contract. Article 1383, the action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. Article 1384 defined those situations where one person is liable for injuries caused by another Article 1385 stated that the rescission creates the obligation to return the things which were the object of the contract Article 1386 refers to rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts. Article 1387 Alienations presumed in fraud of creditors 1. Alienation by gratuitous title 2. Alienation by onerous title Article 1388 The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it due to any cost, he must indemnify the former Article 13 89 The period in filing an action for position of contracts Thank you Atty!
Rodas, Mary Joy B.
1BSA-B
Pamantasan ng Cabuyao
Thank you Atty. for the lecture vids. Here's my takeaways from the video
CHAPTER 3: FORM OF CONTRACTS
Article 1356
Form of contract refers to the manner in which a contract is executed or manifested
1. Informal or common or simple contract
2. Formal or solemn contract
Form for Validity of Contract
1. Donation of real property
2. Donation of real property the value which exceed P5,000
3. Sale of land through an agent
4. Stipulation to pay interest
5. Contract of Partnership
Article 1358
Contracts which must appear in a public document
1. Creation of real rights over immovable property
2. Cession or renunciation of hereditary rights or those conjugal partnership of gains
3. Power to administer property
4. Cession of action or rights
CHAPTER 6: RECISSIBLE CONTRACTS
Article 1380
Rescissible Contracts are those validly agreed upon may be rescinded in the cases established by law
Article 1381
Cases of rescissible contracts
1. Contracts entered into in behalf of wards
2. Contracts agreed upon in representation of absentees
3. Contracts undertaken in fraud of creditors
4. Contracts which refer to things under ligitation
5. Other instances
Article 1384
Rescission shall be only to the extent necessary to cover the damages caused.
Article 1387
All contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation
Ramos, Olivia Melissa P.
1 BSA - A
Pamantasan ng Cabuyao
Good day, Atty! With the help of your provided video here is the summary of my understanding regarding the lesson.
Contracts are binding regardless of their form, as long as all of the necessary conditions for their legality are met. When the law requires a contract to be in a specific form to be legal or enforceable, or that a contract be proven in a certain way, that requirement is absolute and unavoidable. Once the contract has been finalized, if the law demands a document or other particular form, as in the actions and contracts listed in the following article, the contractual parties may compel each other to obey that form. This right can be utilized at the same time as the contract action. Rescissible contracts are those that, notwithstanding their flaws, are nevertheless deemed legitimate. This article also explains the rescission requirements. Rescissible contracts are divided into four categories. Contracts made on behalf of wards are the first. Second, if absentees are represented, contracts are agreed upon. Contracts made in the name of directors are the third type of contract. Finally, some contracts allude to matters that are now in dispute. If the payments are paid when the debtor is insolvent for obligations, the debtor cannot be compelled. Rescission is only available if there is no other legal remedy available. Even though the contract is rescissible, that does not necessarily indicate that rescission of contracts is the best option. When a court declares a contract repudiated, the parties shall render the deal's object, its conditions, and the price with legal interest. This article also contains instances when rescission is not permitted. Even if there is a lession or not, contracts carried into on behalf of absentees in war cannot be revoked if the court has recognized their validity. Alienation by superfluous or onerous title is a type of alienation that is inferred in creditor fraud. A purchaser acting in bad faith may be compensated if he is unable to return the item if the transaction is canceled for whatever reason. When there are two or more, the first should be held accountable first, followed by the second, third, and the following. A claim for rescission must be filed within four years of the date the contract was signed.
Thank you and stay safe, Atty.
Is the four year period applicable to all
cases of rescission?
Danica Leene Gabarda
1BSA-A
Pamantasan ng Cabuyao
Good day Atty. Reyes! These are my takeaways in your discussion.
Chapter 3: Forms of contract
Article 1356 discusses the forms of contracts which is referred to as the manner in which a contract is executed or manifested.
Article 1357 states that the law may require a certain form for the convenience of the oarties in ordee to make effective as against third persons.
Article 1358 discusses the things that must aplear in a public document
Chapter 6: Rescissible Contracts
Article 1380 states that contracts that are validly agreed upon may be rescinded in the cases established by law.
Article 1381 discussea the types of Rescssible contracts and the requisites of rescission of contracts undertaken in fraud of creditors.
Article 1382 states that payment made in the state of insolvency for obligation to whose fulfillment, the debtor could not be compelled at the time they were affected, are also rescissible.
Article 1383 states that if the party suffering damage has no other legal means to obtain reparation, then action for rescission is used. It is because action for rescission is subsidiary.
Article 1384 states that rescission shall be only to the extent necessary to cover damages cause.
Article 1385 discusses the effects of rescission.
Article 1386 states that in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not.
Article 1387 discusses about the alienatioms presumed in fraud of creditors which is the alienation by gratuitous title and alienation by onerous title.
Article 1388 states that whoever acquires in bad faith the things in fraud of creditors shall indemnify the latter for the damages suffered by them on account of the alienations.
Article 1389 states thtat the action to claim rescission must be commenced within 4 years.
Cepe, Alyanna
Pamantasan ng Cabuyao
1 BSA-B
Here are my takeaways in this video:
Chapter 2 Form of Contracts introduced the form of a contract and I learned that there are rules regarding this. Also, I learned that contracts are binding and enforceable to both parties whatever form it is and it should have the three essential requisites to be valid. There are exceptions in form of a contract along with different forms of contract with its form for validity which are either public instrument or writing. As of Art. 1358, there are things that must appear in a public document and in writing. I also learned where a contract must be registered.
On Chapter 6 involving rescissible contracts, I realized that it is a contact that is validly agreed upon because all essential elements exist there is a remedy of recission granted for both parties while recission is a remedy granted by law in restoring things with the same condition before the celebration of a contract. I also knew that requisites of recission and the types of rescissible contracts. I also knew the requisites of rescission of contracts undertaken in fraud of creditors and there are other instances that contracts are rescissible. Another thing that I have learned is that it could not be compelled if the payment made is in insolvency and it should be declared. Also, rescission is only subsidiary which means that it can be availed when proven that the purpose is rescinding and there is no other legal means. According to Art. 1384, rescission is only to the extent of creditor’s unsatisfied credit. The entire contract is not set aside if damage can be repaired by partial rescission because law intended to preserve the contract, not to extinguish it. Lastly, added to my knowledge are rules when recission is not allowed, circumstances denominated as badges of fraud, and the claiming rescission must start within four years from the date of entering the contract.
That is all what I have learned in this video. Thank you,
Malayo, Christine B.
1BSA-A
Pamantasan ng Cabuyao
Good day Atty. After watching your video lecture and reading the book here are my takeaways:
Article 1356 refers to contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised. Article 1357 stated that if the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract.
Article 1358 clearly stated that the following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person;
(4) The cession of actions or rights proceeding from an act appearing in a public document. Article 1359 stated that when, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed.
Article 1360 refers to the principles of the general law on the reformation of instruments are hereby adopted insofar as they are not conflict with the provisions of this Code. Article 1361 stated that when a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed. Article 1362 expressed that if one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. Article 1363, on this article, when one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed. Article 1364 stated that when through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed.
In Article 1365, if two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper. Article 1366, there shall be no reformation on simple donations inter vivos wherein no condition is imposed, wills and when the real agreement is void.
Article 1367, when one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation. Article 1368 expressed that reformation may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns. Article 1369 stated that the procedure for the reformation of instruments shall be governed by rules of court to be promulgated by the Supreme Court. Article 1370 affirmed that if the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former. Article 1371 stated that in order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered. Article 1372 refers to however general the terms of a contract may be, they shall not be understood to comprehend things that are distinct and cases that are different from those upon which the parties intended to agree.
Article 1373 refers to the interpretation of contracts, if the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.
Article 1374 expressed that the various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly. Article 1375 refers to words which may have different significations shall be understood in that which is most inkeeping with the nature and object of the contract.
Article 1376 stated that usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of the stipulations which are ordinarily established. Article 1377 expressed that the interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity.
Article 1378 clearly stated that when it is absolutely impossible to settle doubts by the rules established in the preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the least transmission of rights and interests shall prevail. Article 1379, The principles of interpretation stated in Rule 123 of the Rules of Court shall likewise be observed in the construction of contracts.
Article 1380, Contracts validly agreed upon may be rescinded in the cases established by law.
Article 1381 refers to contracts entered into behalf of wards- a ward is a person under guardianship by reason of some incapacity. As a rule, the powers of the guardian with respect to the property of the ward are limited to mere acts of administration.
Under Article 1382, if one party is unable to pay debts owed, the injured party can rescind the contract. In this situation, the injured party can demand reimbursement of damages from the person or persons who caused the loss.
Article 1383, the action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same.
Article 1384 defined those situations where one person is liable for injuries caused by another (e.g., by one's child, employer or pupil).
Article 1385 stated that the rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore.
Article 1386 refers to rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts.
Article 1387 stated that all contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation.
Article 1388 clearly stated that if there are two or more alienations, the first acquirer shall be liable first, and so on successively.
Article 1389 expressed that the the action to claim rescission must be commenced within four years. For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former’s incapacity, or until the domicile of the latter is known.
Thank you Atty.
Gonzales, Karl Wilson M.
1 BSA - A
Pamantasan ng Cabuyao
Good day, Attorney. Here are my key takeaways for this video:
I have learned that a form of contract refers to the manner in which a contract is executed or manifested. There are also a general rule regarding this: Contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present except when the law requires. The law may also require a certain form for the convenience of the parties in order to make effective, as against third persons and the special form is also indispensable. Article 1358 states that the ff should appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, etc.; (2) Session, reputation or renunciation of rights; (3) The power to administer property or any other power. Sale or transfer of large cattle or chattel mortgage type of contracts must also be registered. Under Article 1380, rescissible contracts are those that are validly agreed upon because all essential elements exist therefore is legally effective. Rescission is a remedy granted by law to secure reparation of damages. There are different types of rescissible contracts: (1) Entered into in behalf of wards; (2) Agreed upon in presentation of absentees; (3) Undertaken in fraud of creditors; (4) Refers to thing under litigation. Other instances where contracts are rescissible: (1) Partition, (2) If the lessor or lessee should not comply with their obligations; (3) Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible. It is also said that rescission is only subsidiary even if the contract is considered rescissible. Rescission shall also be only to the extent necessary to cover the damages caused, and there should be no obligation to restore if nothing has been received. Rescission is also not allowed when the party who demands rescission cannot return what he is obliged to, and if the property is in legal possession of a third person who acted in good faith. Alienations presumed in fraud of creditors: (1) Alienation by gratitude title; (2) Alienation by onerous title. Under Article 1388, it is stated that the purchaser that is in bad faith must return the same if the sale is rescinded and if impossible, he must indemnify the former. If there are two or more, the first shall be liable, and so on, successively. There is also a general rule under Article 1389 that states: The action to claim rescission must be commenced within four years from the date the contract was entered into. Lastly, the injured party or defrauded creditors - his heirs/assigns or successors, or the creditors entitled to subrogation is entitled to bring action. Thank you, atty!
Misa, Jannah Aliah
1BSA-A
Pamantasan ng Cabuyao
Good day, Atty! Here are my key takeaways from this video.
Form of a contract refers to the manner in which a contract is executed or manifested (Article 1356). As a general rule, contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present except when the law requires that a contract be in some form to be valid, to be enforceable or proved in a certain way, and to be in some form for the convenience of the parties of for the purpose affecting third persons.
Under Article 1357, the law may require a certain form of the convenience of the parties in order to make effective, as against third persons. Article 1358 states what are the things that must appear in a public document. All other contracts where amount involved exceeds 500 pesos must appear in writing, even private one. Sale or transfer of large cattle and chattel mortgage are the contracts that must be registered.
Article 1380 provides that rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescession is granted in the interest of equity. It is defective but a valid contract. On the other hand, rescession means a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. The requisites of rescession are also discussed under this article.
Types of rescissible contracts are tackled under article 1381. Those are contracts enters into behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and contracts which refer to things under litigation. The requisites of rescission of contracts undertake in fraud of creditors are as follow:
1. There must be an existing credit prior to rescssion, though it is not yet due or demandable.
2. There must be fraud on part of debtor.
3. Creditor cannot recover his credit, not being required that debtor is insolvent.
Other instances where contracts are rescissible are also discussed in this article.
Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. It must be judicially declared if the debtor is insolvent.
Article 1382 provides that rescission is only subsidiary meaning it comes next after the primary remedy. It can only be availed when proved that there is no other legal means aside from rescinding, even if the contract is considered rescissible because there are still other remedies. If the damage is repaired, rescission cannot take place.
Under article 1384, rescission is only to the extent of creditor's unsatisfied credit. Its effect is the contract need not to be set aside if damage can be repaired or covered by partial rescission. For the reason that the law is to preserve or respect the contract, not to extinguish it.
Effect of rescission is, there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Rescission is not allowed if the party who demands rescission cannot return what he is obliged to and of the property is legally in possession of a third person who acted in good faith.
In contracts entered into in behalf of wards or absentees, rescission cannot take place when the court approved its validity, even there is lesion or not (Article 1386). This is because the law presumes that court acts in the interest of the ward or absentee.
Article 1387 provides the alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also mentioned.
Article 1388 states that the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
As a general rule as stated in article 1389, the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent.
That's all. Thank you, Atty!
Gento, Janella Ann M.
1BSA-B
Form of contract refers to the manner in which a contract is executed or manifested. There is General Rules that contracts is valid and enforceable as long the three (3) essential requisites are existing but there are also exceptions, when the law requires that a contract be in some form, when law requires that a contract be proved in a certain way and when law requires that a contract be in some form for the convenience of the parties or third parties. There are forms for Validity wherein Donation of Real property must be in public document, donation of personal property exceeding the amount of P5,000 must be in writing, sales of land through representative must also be in writing, stipulation to pay interest must be in writing and contract of partnership must be in public instrument meaning it must be duly notarized. Article 1357 states that you can file a complaint to enforce the contract and at the same time reduce the contract into its proper form. Both the action to enforce the contract and to compel or to order the other party to observe for the proper formalities required by law are both allowed.
Article 1380 s about rescissible contracts although defected but because the requisites of contracts exist they are valid and enforceable but the law gives the aggrieved party the remedy of rescission in the interest of equity and fairness. Rescission is a remedy granted by law to the contracting parties or sometimes to third persons. Requisites of Rescission are contract must be validly agreed upon, there must be lesion or prejudice to one of the parties, must be based upon a case, there must be no other legal remedy because if there is then rescission will not take place, the one asking for rescission must be able to return what he is obliged, object must not be in possession of third person who did not act in bad faith, and filing the action for rescission must not have prescribed. There are types of rescissible contracts, one where entered by guardian in behalf of wards, two is agreed upon in representation of absentees, third is undertaken in fraud of creditors, and last is to things under litigation. There are also requisites for Fraud of creditors or known as Fraudulent Alienation of Property by the Debtor. One is there must be an existing debt, there must be fraud on the part of the debtor, and creditor cannot recover his credit. Rescission shall only be to extent of the creditor’s unsatisfied credit. If there is rescission that will take place, rescission creates the obligation to return the things which were the object off the contract with their fruits and price of interest but there are exception, if the party who demands rescission cannot return what he is oblige to restore under the contract and if the property is legally in the possession of a third person who acted in good faith. Mentioned also the circumstances denominated as badge of fraud. One is the fact that the consideration of the conveyance is fictitious or inadequate, two is transfer made by a debtor after suit, sale upon credit by an insolvent debtor, transfer of all of his property by a debtor, especially when he is insolvent or greatly embarrassed financially, the transfer is made between father and son, failure of the vendee to take exclusive possession of all the property, was known to the vendee that the vendor had no properties other than sold to him. The action to claim rescission must be commenced within four (4) years from the date the contract was entered into except under guardianship and for absentees.
Here is the summary of what I’ve learned. Thank you, Atty.
Vapor, Jan Avriel R.
1BSA - B
Pamantasan ng Cabuyao
Good evening, Atty! Here are my notes & summary from this video:
Art. 1356 - general rule: contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present except when the law requires that a contract be in some form to be valid, to be enforceable or proved in a certain way, and to be in some form for the convenience of the parties of for the purpose affecting third persons; form of a contract refers to the manner in which a contract is executed or manifested.
Art. 1357 - law may require a certain form for the convenience of the parties in order to make effective, as against third person. This also allow both the action to compel or to order the other party to observe proper formalities required by law.
Art. 1358 - All contracts where amount involved exceed five hundred pesos must appear in writing even private one.
Art. 1380 - rescissible contracts : those validly agreed-upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Moreover it discuss here there meaning of rescission. It is a remedy granted by law in order to secure the reparation of damages.
Art. 1381 - Types of rescissible contracts. These contracts enters into behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and contracts which refer to things under litigation. The requisites of rescission of contracts undertake in fraud of creditors are as follow:
1. There must be an existing credit prior to rescission, though it is not yet due or demandable.
2. There must be fraud on part of debtor.
3. Creditor cannot recover his credit, not being required that debtor is insolvent.
Other instances where contracts are rescissible are also discussed in this article.
Art. 1382 - Payments made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled.
Art.1383 - rescission is only subsidiary which means contract can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by article 1381.
Art. 1385 - the effect of rescission there is no obligation to restore if nothing has been received when the court declares a contract rescinded. A contract rescinded the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
Art. 1386 - in contracts entered into behalf of ward or absentee precision cannot take place when the court approved its validity even there is lesion or not.
Art.1387 - provides the alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also mentioned.
Art. 1388 - there are two or more first shall be liable and so on successively.
Art. 1389 - General Rule: the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent.
Ranegel Anne R. Miranda
PNC
1 BSA - B
Hello Atty. here are my takeaways for this video lecture. I have learned about the forms of contracts and rescissible contracts.
Article 1356 is about the form of contract which refers to the manner in which a contract is executed or manifested. The general rule is that contracts are binding and therefore, enforceavle reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. Exceptions are the law requires that a contract be in some form to be valid, the law requires that a contract be in some form to be enforceable or provided in a certain way, and the law requires that a contract be in some form for the convenience of the parties or for the purpose of affecting third persons.
In Article 1357, the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. The special form is not indispensable since they are allowed by the law to compel the other to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract.
Under Article 1358, the following must appear in a public document: 1.) Acts and contracts which have for their object, the creation, transmission, notification or extinguishment or real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2 and 1405, 2.) The session, reputation, or renunciation of here with rights or of those of conjugal partnership of gains, 3.) The power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should appear in a public document, or should prejudice a third person, and 4.) The cession of actions of rights proceeding from an act appear in a public document. In this article, all other contracts where amount involved exceeds Five hundreer pesos (Php 500.00) must appear in writing even in the private one. The contracts that must be registered are sale or transfer or large cattle and chattel mortgage.
In Article 1380, rescissible contracts are those validky agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Rescission is a remedy secured by law in order to secure reparation of damages, by means of restoration of things to their same condition, prior to thr celebration of said contract. Under this artile is also the requisites of rescission.
Under Article 1381 is the types of rescissible contracts: 1. Contracts entered into in behalf or wards, 2. Contracts agreed upon in representation if absentees, 3. Contracts undertaken in fraud of creditors, and 4. Contracts which refer to things under litigation. Also under this article is the requisites of rescission of contracts undertaken in fraud of creditors and the other instances where contracts are rescissible.
In Article 1382, payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. When a debtor is insolvent, it is must be judically declared.
In Article 1383, rescission is only subsidiary, it means that rescission can be availed only when proved that there is no other legal means aside from rescinding. Remembering that if the damage is repaired, then rescission cannot take place.
In Article 1384, the extent for rescission is only to the extent of creditor's unsatisfied credit. The effect is that the entire contract need not to be set aside if damage can be repaired or covered by partial rescission. The reason is that the law is to preserve or respect the contract, not to extinguish it.
In Article 1385, the effect of rescission is there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Also in this article is the different circumstances wherein rescission is not allowed: 1. If the party who demands rescission cannot return what he is obliged to and 2. If the property is legally in possession of a third person who acted in good faith.
Under Article 1386, in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not, it is because the law presumes that court acts in the interest of the ward or absentee.
Under Article 1387, alienations presumed in fraud of creditors: 1. Alienation by gratuitous title and 2. Alienation by onerous title. Also under this article is the difference circumstances denominated as badges of fraud.
In Article 1388, the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. When there are two or more, first shall be liable first, and so on, successively.
The general rule in Article 1389 is that the action to claim rescission must be commenced within four (4) years from the date the contract was entered into. EXCEPTIONS: 1. If a person is under guardianship then the beginning period is when the termination of incapacity and 2. If the person is an absentee then the beginning period is when the domicile is known. Also under this article are the list of persons entitled to bring action: 1. The injured party or the defrauded creditor, 2. His heirs, assigns, or successors in interest and 3. The creditors of the above entitled to subrogation.
Thank you atty.
Camposano, Ayumi H.
1 BSA B
Pamantasan ng Cabuyao
Good day, Sir.
Here are my key takeaways after watching the video.
Chapter 2: Forms of Contracts
•Article 1356
Forms of Contract
-refers to the manner in which a contract is executed or manifested.
-A general rule in this provision is that contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present.
-This article also states that a contract is required to be executed in a certain form to be valid.
•Article 1357
- The law may require a certain form for the convenience of the parties in order to make effective, as against third parties.
•Article 1358
This article discusses the things that must appear in a public document such as:
1) Acts and contracts which have for their object, the creation, transmission,notificationor extinguishment of real rights over immovable property, sales of real property of an interest therein is governed by Art. 1403,No. 2 and 1405. 2) The session, reputation or renunciation of here with rights or of those conjugal partnership of gains.
3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person.
4) The cession of actions of rights proceedings from an act appear in a public document.
• Contract of sale and Chattle mortgage must be registered.
•Chapter 6 : Recissible Contract
Article 1380
•Rescissible Contracts
- Kind of contract which is validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interestof equity.
-It is a valid contract even if it is defective. However, because of the interest of equity then the agreed party is granted the remedy of rescission.
-A Rescissible Contract also means that there is economic damage to the other party.
•Rescission - Remedy granted by law in order to secure reparation of damages.
•Article 1381
This article stated the types of rescissible contracts which are:
1. Contracts entered into behalf of wards.
2. Contracts agreed upon in representation of absentees.
3. Contracts undertaken in fraud of creditors.
4. Contracts which refres to things under litigation.
-This article also stated the other instances where contracts are rescissible which are:
1. Partition
2. If the lessor or lessee should not comply with their obligations.
3. The vendee may rescind when the real estate sold is less than or exceeds one tenth of the agreed price.
•Article 1382
This article is an important provision wherein it states taht payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled.
•Article 1383
Rescission is only subsidiary, wherein it can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by article 1381.
-It is only available when there is no legal means.
-This article also tells that if the damage is repaired, rescission cannot tke place.
•Article 1384
This article states the extent, effect and reason of rescission. Wherein its extent is only up to the extent of creditor's unsatisfied credit. Its effect covers the entire contract need not be set aside if damage can repaired or covered by partial rescission. And laslty its reason was that the Lw is to preserve or respect the contract, not to extinguish it.
•Article 1385
Effect of rescission
-It stated that when the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
•Article 1386
-This article stated that in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not.
•Article 1387
This article discusses about the alienations presumed in fraud of creditors which are : Alienation by gratuitous title and Alienation by onerous title.
•Article 1388 states that when the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify teh former. When there are two or more, first shall be liable first, and so on.
•Article 1389
General rule: The action to claim rescission must be commenced within four years from the date the contract was entered into.
Aggabao, Princess Joy B.
1BSA-A
PNC
Good day Atty. here are my takeaways after reading the book and watching your video lecture. Chapter 3 talks about the forms of contract which can be formal(required by the law to be in some manner where a contract is manifested a executed) and informal (can be executed in any whatever forms may it be oral, written or partly oral and partly written). Forms refers to the manner in which a contract is manifested and executed. General Rule is that forms in a contract is not required as long as it contains all the essential requisites COC except for the purpose of validity, enforceability and convenience. - (Art 1356) The right to compel the other party to execute the necessary form applies only if the form is needed for the convenience and contract is valid and enforceable. - (Art 1357) The following must appear in a public document; creation, transmission, modification, or extinguishment of real rights over immovable property, renunciation of hereditary rights, authority to administer or manage property, cession of rights and any other contracts where the amount involved is five hundred pesos above. - (Art 1358)
Chapter 6 talks about the rescission/cancellation of contracts, they are valid, however, because of some economic injury or damage caused to the aggrieved party it is a granted remedy for the latter. The purpose of this is the secure reparation of damages caused to them by a valid contract. - (Art 1380) These are the some of the contacts that are rescissible; Contract is entered into on behalf of the ward and representation of the absentee, things under litigations, other contracts especially declared by the law. - (Art 1381) When debtors suffer insolvency and obligation is not yet due and demandable, payment made in advance can be rescinded. - (Art 1382) Rescission is the the principal remedy, it takes place only when the damages has no other legal means to obtain reparation. - (Art 1383) Aside from the facts that rescssion is just subsidiary, the extent of rescission will not entirely rescind the contract. - (Art 1384) General rule in mutual restitution, the party who demanded rescission must be able to return what he has received by virtue of that contract except the object/thing is in the possession of the 3rd person who acted in good faith. The only remedy is to indemnity for damages. - (Art 1385) Defense to avoid rescission of the contract takes place because the contract is valid whether there is lession or not. - (Art 1386) Presumption of fraud in case of gratuitous alienation because the debtor did not reserved sufficient property to pay all his debts contracted before the donation. Second is the onerous alienation where after the writ of attachment the debtor still sell that thing. Any creditors may file for the rescission after the presumption of fraud by onerous alienation. - (Art 1387) Effect of bad faith object must be returned if cannot be returned, the latter should indemnify for damages. - (Art 1388) From the date of fraudulent action there is 4 years given to file for an action/rescission. - (Art 1389)
That's all thank you.
Pedrigosa, Patricia Jhoana R.
1BSA-B
Good day Atty.
These are my takeaways from this video lecture:
Article 1356 define a form of contract that refers to the manner in which a contract is executed or manifested.
Article 1357 says that the law may require a certain form for the convenience of the parties in order to make effective against third persons.
Article 1358 tackle about the contract that must be registered are:
1. Sale or transfer of large cattle
2. Chattel mortgage
Article 1380 defines rescissible contract or those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity.
Article 1381 provides the 4 types rescissible contract:
1. Contracts entered into in behalf of wards
2. Contracts agreed upon in representation if absentees
3. Contracts undertaken in fraud of creditors
4. Contracts which refer to things under litigation.
Article 1382 says that the payments made in a state of insolvency for obligation to whose fulfillment the could not be compelled.
Article 1383 says that the rescission as are you remedy is only a subsidiary remedy.
Article 1385 says that rescission is not allowed if the party who demands rescission cannot return what he is obliged to, if the property is legally in possession of a third person who acted in good faith.
Article 1386 says that in contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approve its validity, even there is lesion or not.
Article 1387 provides the circumstances denominated as badges of fraud.
Article 1388 says that the purchases in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, famous indemnify former.
Article 1389 has the general rule of "the action to claim rescission must be commenced with four years from the date the contract was entered into".
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Thank you atty. :)
Meriño, Leann Rain E.
1BSA-A
Pamantasan ng Cabuyao
Good day, Attorney! Here are my takeaways from your video lecture.
Chapter 2. FORM OF CONTRACTS
(Article 1356) Talks the form of contract. It is a manner in which a contract is executed or manifested. As a general rule, contracts are binding and are not required to be reduced in a certain form but there are exceptions to be considered.
(Article 1357) Stated that a law may require a certain form for the convenience of the parties to make it effective, as against third persons. Since the special form is not indispensable, they are allowed by law to compel the other to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract.
(Article 1358) In a public document, there are some of the things that must appear in it.
Chapter 6: RESCISSIBLE CONTRACTS
(Article 1380) About rescissible contracts which is a valid contract, although defective, because it gives the aggrieved party the remedy of rescission. Requisites of rescission are also stated in this article.
(Article 1381) There are four types of rescissible contracts. Four types of rescissible contracts: are contracts entered into on behalf of wards; contracts agreed upon in representation of absentees; contracts undertaken in fraud of directors; and lastly, contracts that refer to things under litigation.
(Article 1382) When a payment is made in a state of insolvency for an obligation to whose fulfillment the debtor could not be compelled.
(Article 1383) Rescission is only a subsidiary. It means it can be availed only when proved that there are no other legal means aside from rescinding.
(Article 1384) Extent is only up to the extent of creditors' unsatisfied credit. Rescission is only up to the extent necessary in order to satisfy the creditors' claim not the entirety of the payment. The reason for rescission is to preserve the contract and not to extinguish it.
(Article 1385) talks about the obligation of the parties upon complete rescission. There is no obligation to restore if nothing has been received. It also states the circumstances where rescission is not allowed.
(Article 1386) In contracts entered on behalf of the ward or absentee, precision cannot take place when the court approved its validity even there is a lesion or not because it is presumed that the court acts in the interest of the ward or absentees.
(Article 1387) Alienations presumed in fraud of creditors: (1) alienation by gratuitous title; and (2) alienation by onerous title. This article also states the circumstances denominated as badges of fraud.
(Article 1388) The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it due to any cost, he must indemnify the former. And when there are two or more, first shall be liable and so on successively.
(Article 1389) GENERAL RULE: The action to claim rescission must be commenced within four years from the date the contract was entered into. EXCEPTION: When the person is under guardianship where the beginning period is the termination of incapacity, and when the person is an absentee where the beginning period is when the domicile is known.
Thank you, Atty!
Nofies, Gretchen M.
1BSA-A
PNC
Good day Atty! Here are my takeaways after reading the book and watching your video lecture:
Chapter 2. FORM OF CONTRACTS
Article 1356 - A form of contract refer to the manner in which a contract is executed or manifested. The contract maybe oral or in writing or party oral and party in writing. As a general rule of contract are binding and therefore, enforceable reciprocally by the contracting parties whatever may be the form in which the contract has been entered into.
Article 1357. It is stated here that a law may require a certain form for the convenience of the parties in order to make it effective, as against third persons. Since the special form is not indispensable, they are allowed by law to compel the other to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract.
Article 1358. This article covers the things that should appear in a public document.
1. Contract entered into a behalf of wards
2. Contract agreed upon in representation of absentees.
3. Contract undertaken in fraud if creditor.
4. Contract which refers to things under litigation.
Chapter 4: Reformations of Instruments
Article 1359- Reformation is the remedy allowed by law by means of which a written instrument is amended or rectified so as to express or conform to the real agreement or intention of the parties when by reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express such agreement or intention.
Article 1360-The principle of the general law on the reformation of instruments are hereby adopted. In case of conflict between the provisions of the New Civil Code and the principles of the general law on reformation, the former prevails.
Article 1361-There are disclose real agreement said instrumental may be reformed. Mutual mistake is mistake of fact that is common to both parties of the instrument which causes the failure of the instrument to express their true intentions.
Article 1362- The right to ask for reformation is granted only to the party who was mistaken in good faith.
Article 1363- Remedy of reformation may be availed of the party who acted in good faith. The concealment mistake by the other party constitute fraud.
Article 1364- Neither party is responsible for the mistake. Hence, either party may ask for reformation.
Article 1365- The reformation of the instrument is proper: otherwise, the true intention of the parties would be frustrated.
Article 1366- There shall be no reformation on the following cases:
1. Simple donations inter vivos wherein no condition is imposed
2. Wills
3. When the real agreement is void.
Article 1367- The party who brings an action to enforce contract cannot subsequently ask for its reformation.
Article 1368- These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled.
Article 1369- Rules of court shall govern procedures for the reformation of instruments.
Chapter 5: Interpretation of Contracts
Article 1370- If the word appear to be contrary to the evident of the parties the latter shall prevail over the former.
Article 1371- In order to judge the intention of the contracting parties their contemporaneous and subsequent acts shall be principally considered.
Article 1372- However general the terms of a contracts may be they shall not be understood to comprehend things that are distinct and cases that are different from those upon which parties intended to agree.
Article 1373- When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation.
Article 1374- A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instruments and not from particular words, phrases, or clauses.
Article 1375- Words which may have different signification shall be understood in that which is most in keeping with the nature and objects of the contracts
Article 1376- The usage or custom of the place shall be borne in the mind interpretation of the ambiguities of the contracts , and shall fill the omission of stipulation which are ordinarily established.
Article 1377- Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity.
Article 1378- If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules.
Article 1379- The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts.
Chapter 6: Rescissible Contracts
Article 1380- Rescissible contracts is about those validly agreed upon because all essential elements exist therefore legally effective but the remedy of rescission is granted in the interest of equity while RESCISSION itself is a remedy granted by law to secure the reparation of damages, by means of restoration of things in their same condition prior to the celebration of said contract.
Article 1381- Types of Rescissible Contracts: contract entered into on behalf of ward; contracts agreed upon in representation if absentees; contracts undertaken in fraud of creditors; contracts which refer to things under litigation. Partition means any of the co-heirs received things valued at least one-fourth than the share he is entitled.
Article 1382- When a payment is made in a state of insolvency for obligations to whose fulfillment, the debtor could not be compelled.
Article 1383- Rescission is only subsidiary. It means it can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Article 1381. It is also noted that if damage is repaired, rescission cannot take place.
Article 1384- The entire contract need not be set aside by rescission if the damage can be repaired or covered by partial rescission.
Article 1385- The purpose of rescission is to restore the parties to their original situation.
Article 1386- If contract entered into on behalf of a ward or absentee has been approved by the court, rescission cannot take place because it is valid whether there is lesion or not.
Article 1387. The circumstances denominated as badges of fraud: the consideration of conveyance is fictitious or inadequate; a transfer made by a debtor after suit has begun and is pending against him; a sale upon credit by an insolvent debtor; the transfer of all of his property by a debtor when he is insolvent or greatly embarrassed financially; the transfer is made between father and son when there are present some or any of the above circumstances; the failure of the vendee to take exclusive possession of all the property; and it was known to the vendee that the vendor had no property other than that sold.
Article 1388- The purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded and if impossible, he must indemnify the former.
Article 1389- The action to claim rescission must be commenced within four years.
Thank youu!
Fernandez, Patricia Jainah M.
1BSA-A
Good Day, Atty. I would like to thank you for uploading videos that helps us learn and get to know more the Law on Obligations and contracts that would help us for building the knowledge in the time the students you teach would face the world and become successful CPAs.
Forms of Contracts
Article 1356:
Contract is considered in written form. A contracts partly in writing and partly oral, is in legal effect, an oral contract. It is binding and therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into provided all the three essential requisites for their validity are present.
Article 1357:
A certain form is required for the convenience of the parties in order that the contract may be registered in the proper registry to make effective as against third person.
Article 1358:
The contracts are valid and enforceable though not embodied in a public document or writing or in instrument. The law does not require accomplishment of certain acts or contracts in a public instrument in order to validate the act or contract but only to insure its efficacy so that after the existence of the act or contract has been admitted or established, the party bound may be compelled to execute the document.
Rescissible Contracts
Article 1380:
Rescissible contracts are those that are properly agreed upon since all of the essential elements exist and are thus legally effective, but the remedy of rescission is provided in the interest of equity in the cases established by law. Rescission is an equitable remedy allowed by law to contracting parties and, in some cases, third parties in order to collect restitution for damages caused by a legal contract by restoring things to their pre-contractual condition.
Article 1381:
The subsidiary action for rescission is limited to the rescissible contracts under Article 1381. There are kinds of rescissible contracts: contracts entered into in behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refers to things under ligation and other instances.
Article 1382:
The current article refers to "payments," rather than a contract. If a debtor lacks sufficient assets to satisfy his debts, he is said to be insolvent. It is not essential for the debtor's insolvency to be proclaimed judicially. Payments must have been made “for obligations to which the debtor could not be compelled to fulfill at the time they were effected.”
Article 1383:
Article 1383 revocation is not a principal remedy. It is only supplemental and can be used only if the aggrieved party can demonstrate that he has exhausted all other legal options, including rescinding the contract, to achieve satisfaction for his claim or reparation for the damage caused, even if the contract is covered by Article 1381.
Article 1384:
The entire contract need not be set aside by rescission if the damage can be repaired or covered by partial rescission. The rescission shall only be to the extent of the creditor’s unsatisfied credit. The reason is the law is to preserve or respect the contract, not to extinguish it.
Article 1385:
The aim of rescission is to put the parties back in their original position. The law presumes that the party who acquired the contract's object has enjoyed its fruits, whilst the other has spent the money that represents the item's price. In terms of the fruits, the norms of possession apply. Rescission is not allowed when the party who demands it cannot return what he is obliged to restore under the contract and if the property is legally in the possession of a third person who acted in good faith.
Article 1386:
Rescission cannot occur if a contract entered into on behalf of a ward or absentee has been allowed by the court since it is legitimate whether there is lesion or not. When the court confirms the contract despite the lesion, the law presumes that the court is working in the best interests of the ward or absentee.
Article 1387:
This provision creates a prima facie presumption of fraud in the context of the debtor's alienation of his property. However, the examples given are not exclusive of those that can be proven in any other way authorized by evidence law: a. )Alienation by gratuitous title and b.) Alienation by onerous title.
Article 1388:
If the sale is withdrawn, the purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors must return it, and if he is unable to return it owing to whatever reason, he must indemnify the former. If there are two or more alienations, the first acquirer is accountable first, and so on.
Article 1389:
Contract rescinding actions must be filed within four (4) years of the date the contract was signed. The exceptions are:
1. For persons under guardianship, the period shall begin from the termination of incapacity; and
2. For absentees, from the time the domicile is known.
The action for rescission may be brought by:
1. the injured party or the defrauded creditor;
2. his heirs, assigns, or successors in interest; or
3. the creditors of the above entitled to subrogation (accion subrogatoria).
Agdefa, Cristine Bernadette Y.
1BSA-B
Good day, Atty.! These are my takeaways.
The first article refers to the manner in which a contract is executed or displayed is referred to as its form. Contracts are generally binding and thus enforced reciprocally by the contracting parties, regardless of the form in which they are entered into, as long as all three necessary requisites for their validity are met. Article 1357 states that the law may demand a certain form for the parties' convenience in order for it to be effective against third parties and article 1358 pertains to the information that must be included in a public document. In addition, all other contracts worth more than P500, even private ones, must be in writing.
Moving on to the chapter 3 or the rescissible contracts. Article 1382 defined the it as ones that are legally binding since all essential parts are present, but the right to rescission is granted in the interest of equity. Rescission, on the other hand, is a legal remedy for securing damages by restoring things to their original state prior to the contract's fulfillment and the next article gives the types of the rescissible contracts. According to article 1382, payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. The next article states that rescission is a subsidiary remedy, meaning it can only be used if it can be demonstrated that there are no other legal options. Furthermore, rescission is not possible if the damage is remedied. As to the extent, rescission is only to the extent of the creditor's unsatisfied credit. Its effect is that the entire contract need not be set aside if damage can be repaired or covered by partial rescission, the reason is that the law is to preserve or respect the contract, not to extinguish it, this is in accordance to article 1384. If the party who demands rescission cannot return what he is obliged to and if the property is legally in possession of a third person who acted in good faith, then rescission is not allowed according to art. 1385. Similarly, according to article 1386, rescission cannot take place when the court approved its validity, even if there is lesion or not, in contracts entered into on behalf of ward or absentee. On the other hand, the alienation presumed in fraud of creditors are discussed in the following article which are alienation by gratuitous title and by onerous title. And, if the sale is rescinded, the person who made the bad faith purchase must return it, and if he is unable to do so for any reason, he must reimburse the person who made the good faith purchase. Lastly, article 1389 stated the general rule in which that the action to claim rescission must be commenced within four years from the date the contract was entered into. That’s all, Atty.! Thank you for this video lecture.
Francisco, Yvonne Lee R.
1 BSA-B
Good day, Atty! Here are some of my notes from this video:
Chapter 3: Forms of Contracts
• Article 1356 talks about forms of contract. It refers to the manner in which a contract is executed or manifested.
• Article 1357 - The law may require a certain form for the convenience of the parties in order to make effective, as against third persons.
• Article 1358 is about contract that must appear in a public document.
Chapter 6: Rescissible Contracts
• Article 1380 speaks about rescissible contracts. Those validly agreed upon because all essential elements exist therefore legally effective, but remedy of rescission is granted in the interest of equity.
• Article 1381 is about types of rescissible contracts.
• Article 1382 - Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled.
• Article 1383 - Rescission is only subsidiary. It Can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art. 1381.
• Article 1384 is about extent of rescission.
• Article 1385 talks about the effect of rescission. There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
• Article 1386 - In contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not.
• Article 1387 is about alienations presumed in fraud of creditors.
• Article 1388 - The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
• Article 1389 - General rule: The action to claim rescission must be commenced within four (4) years from the date the contract was entered into.
Thank you for this lecture, Atty!
Krisha Mae M. Navarro
1BSA-B
PNC
Good day, Atty. Narciso. Here are some key points that I learned upon seeing this video.
CHAPTER 2: FORMS OF CONTRACTS
- This chapter defines the form of contracts which refers to the manner in which a contract is executed or manifested.
- Contracts are not required to be reduced in a certain form as to general rule except: A contract must be in some form to be valid under the law, must be in some form to be enforceable or proven in a certain way, according to the law, must be in some form for the convenience of the parties or to effect third parties, according to the law.
- The law may need a certain form for the parties' convenience in order to be effective against third parties. They are not required to use the special form since they are permitted by law to compel the other party to use the proper form, and this right may be utilized concurrently with the action to enforce the contract.
CHAPTER 6
- Talks about rescissible contracts which defines as validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity.
- Rescissible contracts are valid contracts that give the agreed party the right of rescission in the interest of justice and equality.
- REQUISITES OF RESCISSION
1. The contract must be validly agreed upon.
2. There must be lesion or pecuniary prejudice to one of the parties or to a third person.
3. The rescission must be based upon a case especially provided by law.
4. There must be no longer legal remedy to obtain reparation for the damage.
5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract.
6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith.
7. The period for filing the action for rescission must not have prescribed.
- Payments paid in an insolvent state for obligations that the debtor could not be forced to complete.
- The action for rescission is a secondary action that can only be brought when the party who has been harmed has exhausted all other legal options for obtaining compensation.
- RESCISSION'S Effect is, if nothing has been received, there is no responsibility to restore. When a court declares a contract void, the parties must return the deal's object, its fruits, and the money, plus lawful interest, to each other.
- When a court has approved the validity of a contract entered into on behalf of a ward or in their absence, rescission is not possible, even if there is no lesion because the court is presumed to act in the best interests of the ward or absentee.
- ALIENATIONS PRESUMED IN FRAUD OF CREDITORS:
1. Alienation by gratuitous title
2. Alienation by onerous title
- A purchaser acting in bad faith must return the item if the sale is rescinded, and if he is unable to do so for any reason, he must compensate the seller.
- The action to claim rescission must be commenced within four years from the date the contract was entered into.
Thank you, Atty.
Camas, Ma. Joyce Susanfei M.
1 BSA-B
Pamantasan ng Cabuyao
Good Day, Atty. Thank you for providing this video. Below are my takeaways:
Forms of Contract
Article 1356
Form of contract-the manner in which a contract is accepted or manifested
Rules regarding form of contracts
General rule: contracts are binding and enforceable reciprocally by the contracting parties in whatever form that they may have been entered into provided that all the three essential requisites for their validity are present
Exceptions:
1. The law requires that a contract be in some form to be valid
2. The law requires that a contract be in some form to be enforceable or proved in a certain way
3. The law requires that a contract be in some form for convenience of the parties or for the purpose of affecting third persons
1. Donation of real property- must be executed in a public instrument
2. Donation of personal property the value of which exceeds five thousand pesos - donation and the acceptance must be both in writing now
3. Sale of land through an agent- authority of the agent must be in writing otherwise the sale is void
4. Stipulation to pay interest- must be in writing
5. Contract of partnership-if an immovable is contributed then it must be in public instruments
Formalities are required -may either be in a public instrument or in writing
• Public instrument - agreement must be reduced to writing and it must be duty notarized by a notary public:
o Donation of real property
o Contract of partnership - immovable property is contributed it must be in a public instrument
• Requires merely that the agreement must be reduced to writing
o Donation of personal property the value of which exceeds 5000pesos
o Sale of land through an agent
o Stipulation to pay interest
Article 1357
• The law may also require that a certain form for the convenience of the parties in order to make effective as against third persons
• The special form is not an indispensable requirement since they are allowed by law to compel the other party to observe the proper form and this right may be exercised simultaneously with the action to enforce the contract
Article 1358
The following must appear in a public document
1. Acts and contracts which have for their object recreation transmission notification or extinguishment of real rights over an immovable property sale of real property, or an interest therein governed by articles 1403 number 2 and 1405
2. The session, reputation, or renunciation of here with rights or of those of conjugal partnership of gains
3. The power to administer property or any other power which has for its object an act appearing or which should appear in public document or should appear in a public document or prejudice a third person
4. Session of actions of rights proceeding from an act appearing in a public document
5. All the contracts where the amount exceeds 500 pesos must appear in writing even private one
Contracts that must be registered:
1. Sale or transfer of large cattle
2. Chattel mortgage
Defective contracts
1. Rescissible Contracts
-validly agreed upon because all the essential elements exist therefore legally effective, but the remedy of rescission is granted in the interest of equity
• Rescission - remedy granted by law in order to secure reparation of damages by means of restoration of things to their same condition prior to the celebration of the said contract
Article 13 80
Requisites of rescission
1. The contract must be validly agreed upon
2. There must be a lesion or pecuniary prejudice to one of the parties or to a third person
3. The rescission must be based upon a case especially provided by law
4. There must be no other remedy to obtain reparation for the damage
5. The party asking for decision must be able to return what he is obliged to restore by reason of the contract
6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith
7. The period for filing the action for a session must not have prescribed
Article 1381
Types of rescissible contracts
1. Contracts entered into on behalf of wards (persons who are under guardianship)
2. Contracts agreed upon in representation of absentees (persons who do not appear after sufficient lapse of period of time)
3. Contracts undertaken in fraud of creditors
4. Contracts which refer to things under litigation
5. Now first contracts entered into in
Requisites of rescission of contracts undertaken in fraud of creditors
1. There must be an existing credit prior to recession though it is not yet due or demandable
2. There must be fraud on the part of the debtor (deceit may be presumed or proved)
3. Creditor cannot recover his credit, not being required that the debtor be insolvent
Other instances where contracts are rescissible
1. Partition- when any of the co-heirs received things valued at least one-fourth than the share he is entitled
2. If the lessor or lessee should not comply with their obligations
3. Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price
Article 1382
• Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled
Any and all payments made by an insolvent debtor for obligations to whose fulfillment the
Debtor could not be compelled then that payment becomes receivable
• When a debtor is insolvent then there must be a judicial declaration to that effect
Article 1383
• Rescission is only a subsidiary (remedy)
Can be availed only when proved that there is no other legal remedy aside from recession now even if the contract is considered as rescissible under article 1381
Note: if the damage is repaired, rescission cannot take place
Article 1384
• Extent- only up to the extent of creditors unsatisfied credit
Rescission is only up to the extent necessary in order to satisfy the creditors claim not the entirety
Of the payment
• Effect -entire contract need not be set aside if damage can be repaired or recovered by partial rescission
• Reason of precision-the law is to preserve or respect the contract and not to extinguish it
Article 1385
Effect of rescission
There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits
And the price thereof with legal interest
1. The other party must return the object of the contract
2. The fruits of the object and the price thereof with legal interest
When rescission is not allowed:
1. If the party who demands rescission cannot return what he is obliged to
2. If the property is legally in possession of a third person who acted in good faith
Article 1385
In contracts entered into on behalf of ward or absentee precision cannot take place when the court approved its validity even if there is lesion or not
Reason: the law presumes that the court acts in the interest of the ward or absentee
Article 1387
Alienations presumed in fraud of creditors
1. Alienation by gratuitous title
2. Alienation by onerous title
Circumstances denominated as badges of fraud (hallmarks of fraud)
1. The consideration of conveyance is fictitious or inadequate
2. A transfer made by a debtor after suit has begun and is pending against him
3. A sale upon credit by an insolvent debtor
4. The transfer of all his property by a debtor when he is insolvent or greatly embarrassed financially
5. The transfer is made between father and son when there are present some or any of the above circumstances
6. The failure of the vendee to take exclusive possession of all the property
7. It was known to the vendee that the vendor had no property other than that sold
Article 1388
• The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it due to any cost, he must indemnify the former
• When there are two or more then the first shall be liable and so on successively
Article 13 89
The period in filing an action for position of contracts
General rule: an action to claim recession must be commenced within 4 years from the date the contract was entered into
Exceptions
1. The person is under guardianship then four years will commence to upon termination of incapacity
So, for example the person under guardianship is a minor then the four-year period will only commence to run upon attaining the age of majority or the legal age
2. Absentee then if his domicile is known then the four-year period will commence to run
Persons entitled to bring action
1. The injured party or the defrauded creditor
2. His heirs assigns or successors in interests
3. The creditors of the above entitled to subrogation
Roble, Ramilyn M.
1BSA-A
Pamantasan ng Cabuyao
Good day, Atty. Here is the summary of what I have learned from the video lecture.
CHAPTER 3 - FORMS OF CONTRACTS
Article 1356 - It talks about the forms of contract which refers to how a contract is executed. In enforcing a contract it should not be reduced or change the form in which the contract has been entered into first. However, there are exceptions: (1) it is when the law requires that a contract be in some form to be valid, (2) when the law requires that a contract be in some form to be enforceable or proved in a certain way, or (3) when the law requires that a contract be in some form for the convenience of the parties or to affect the third persons. Thus, there are certain contract that requires some form to be valid.
Article 1357 - This states the third exception of requiring some form in a contract. It states that law requires a certain form against the third person for the convenience of the parties for the contract to be valid.
Article 1358 - This tackles that contract which must be appear in public document. These are creation, transmission, modification, or extinguishment, of real rights over immovable property, cession, repudiation or renunciation of hereditary rights, power of administer property, cession of actions or rights proceeding from an act appearing in public document, and all other contracts with amount exceeding five hundred pesos must appear in writing, even a private one.
CHAPTER 6 - RESCISSIBLE CONTRACTS
Article 1380 - It talks about the rescissible contract, they are those validly agreed upon because all the essential elements exist, and, therefore, legally effective, but in cases established by law, the remedy of rescission is granted in the interest of equity. Rescission, however, is the remedy by law to secure reparation of damages, employing restoration of things to their same condition before the celebration of said contract. The following are requisites of rescission: (1) contract must be validly agreed upon, (2) there must be lesion or pecuniary prejudice to one of the parties or a third person, (3) must be based upon a case especially provided by law, (4) must be no other legal remedy to obtain reparation, (5) party asking for rescission must be able to return what he is obliged to restore, (6) the object must not legally be in the possession of the third person, and (7) period for filing the action for rescission must not have prescribed.
Article 1381 - This discusses the types of rescissible contracts: (1) contracts entered into in behalf of wards, (2) agreed upon in representation of absentees, (3) undertaken in fraud of creditors, (4) under litigation, and (5) other instances like partition, the lessor or lessee does not comply with their obligation, or the vendee rescind when the real estate sold is less than or exceeds one-tenth of the agreed upon.
Article 1382 - It speaks about the payments made in a state of insolvency being not compelled by the debtor for the fulfillment is also a rescissible contract.
Article 1383 - It says that rescission is only subsidiary, it can only be availed when proved that there are no other legal means. However, if the damage has been repaired, rescission should not take place.
Article 1384 - It states that rescission which said that there is no obligation if nothing had been received. And with that, a contract should not be set aside because the law preserves and respect the contract, not extinguish it.
Article 1385 - This talks about the effect of rescission which it said that there is no obligation if nothing has been received. The court declares a contract rescinded the parties should return to each other the object and the price thereof with legal interest. However, rescission is not allowed if the party who demands rescissions cannot return what he is obliged to and if the property is legally in possession of a third person who acted in good faith.
Article 1386 - This tackles the contract entered into in behalf of ward. It states that rescission is not allowed when the court approved its effectivity, even there is lesion or not.
Article 1387 - This talks about the fraud in the act of creditors which presumed to be alienated. These are alienation by gratuitous title and alienation by onerous title. The circumstances denominated as badges of fraud are as follows: (1) the consideration of conveyance is fictitious or inadequate, (2) transfer made by a debtor after suit has begun and is pending against him, (3) sale upon credit by an insolvent debtor, (4) transfer of all of this property by a debtor, (5) transfer is made between father and son, (6) transfer is made exclusive possession of all property, and (7) it was know to the vendee that the vendor had no properties other than that sold to him.
Article 1388 - The purchaser who acted in bad faith must return the same if the sale is rescinded and if it is impossible to return, he must indemnify the former.
Article 1389 - It says that rescission must be commenced within 4 years from the date the contract was entered into excepts if the person is under guardianship, the period shall begin from the termination of incapacity and if the person is absentees, the period starts at the time when domicile is known. The person entitled to bring this action are the injured party, the heir, and the creditors of the above-entitled to subrogation.
Thank you, Atty for the lecture.
Reyes, Zhellie Mae
1-BSA-A
Good day Atty. Thank you for this lecture video. Here is what I have learned.
The first part of the lecture video is all about forms of contract. Article 1356 provides that form of contracts refers to the manner in which a contract is executed or manifested. As a general rule, contracts are binding and enforceable reciprocally by the contracting parties regardless of what form of contract is it, as long as the three essential requisites are present, then they are valid and binding unless, the law requires that a contract be in some form to be valid and also be proved to be enforceable in a certain way and when the law requires that a contract be in some for the convenience of the parties. This corresponds to what Article 1357 states, whereas the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. Article 1356 provides the things that must appear in a public document such as sales of real property, cession, reputation or renounciation of here with rights, the power to administer property and the cession of actions of rights proceeding from an act appear in a public document. This just means that these forms of contracts must be notarized.
CHAPTER 6: RESCISSIBLE CONTRACTS
Article 1380 provides for the definition of rescissible contracts as those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Even if they are defective, it is still considered as a valid contract. It merely gives the parties the right for rescission. Rescission is a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. In addition to that, this article also provided the requisites of rescission which are: (1) The contract must be validly agreed upon. (2) There must be lesion to one of the parties or to a third person. (3) The rescission must be based upon a case especially provided by law. (4) There must be no other legal remedy. (5) The party asking for rescission must be able to return what he is obliged. (6) Object of contract must not legally be in the possession of the third person who acted in good faith. (7) The period for filing the action must not have prescribed.
Article 1381 gives the types of rescissible contracts which are: (1) Contracts entered into in behalf of wards. (2) Contracts agreed upon in representation of absentees. (3) Contracts undertaken in fraud of creditors. (4) Contracts which refer to things under litigation. There are also some other instances where contracts are rescissible such as when any of the co-heirs received things valued at least one-fourth than the share he is entitled or partition, if the lessor or lessee should not comply with their obligations or when the vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price.
Article 1382 states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Payment made by an insolvent debtor is rescissible and it is must be judicially declared.
Article 1383 provides that rescission is only subsidiary. It can only be availed when it is proved that there is no other legal means aside from rescinding, even such contract is covered by Article 1381.
Article 1384 Rescission shall be only to the extent necessary to cover the damages caused. The entire contract need not be set aside by recission if the damage can be repaired or covered by partial recission.
Article 1385 is about effects of rescission. It is stated that there is no obligation to restore if nothing has been received. The parties must return to each other the object of the contract with its fruits and the price thereof with legal interest from the moment the court declares a contract rescinded. This article also provided situation when rescission is not allowed such as if the party who demands rescission cannot return what he is obliged to as to what has been discussed before, the parties are required to give back what they have received. In addition to that, rescission is also not allowed if a property is legally in possession of third person who acted in good faith just like what the previous have discussed.
Article 1386 states that if a contract entered into is in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not because the law presumes that court acts in interest of the ward or absentee.
Article 1387 provides alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title.
Article 1388 states that the purchaser which acted in bad faith must return the same if the sale is rescinded and if it is impossible for him to return it, he must indemnify the former.
Article 1389 states that general rule that the action to claim rescission must be commenced within four years from the date the contract was entered into.
Thank you for this lecture video, Atty. Keep safe and God bless.
Vesliños, Hannah Camille C.
1-BSA
Pamantasan ng Cabuyao
Chapter 3 Forms of Contracts
Article 1356 A form of contract refer to the manner in which a contract is executed or manifested. The contract maybe oral or in writing or party oral and party in writing. As a general rule of contract are binding abd therefore, enforceable reciprocally by the contracting parties whatever may be the form in which the contract has been entered into. In other hand, contract are not required to reduce in general rule but there is exception:
1. The law requires that a contract be in the form to be valid.
2. The law requires a contract be in some form to be enforceable or proved in a certain way.
3. The law requires that a contract be in some form for the convenience of the parties or fot the purpose of affecting third person.
However, a contract requires to executed in a certain form to be valid.
In Article 1158 the law may require a certain form for convenience of the parties in order to make effective, an against third person. Sometimes the law will requires that a certain contract be executed in a certain way to be effective as a third person. The following must appear in a public moment.
1. Act and Contract which have for their object the creation, transmission, notification and extinguishment of real right over immovable property, sales of real property of an interest therin is governed bt Article 1403 No. 2 & 1405.
2. The session, reputation or renunciation of there with right or of those of conjugal partnership of gains;
3. The power to administer property or any power which for its object appearing or which should appear in public document or should prejudice on a third person .
In Article 1358 all Contract that amount involved exceeds five hundred pesos appear in writing even private one. A contract must be registered also ;
1. Sale or transfer of large cattle public instrument means duly authorized.
Chapter 6 which discussed the Rescissible Contract , upon this article it gives the four type of Rescissible Contract which shown below:
1. Contract entered into a behalf of wards
2. Contract agreed upon in representation of absentees.
3. Contract untertaken in fraud if creditor.
4. Contract which refers to things under litigation.
In Article 1382 that the payment made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled. In this article, included in the obligation referred to are not only those that have not yet become due and demandable but also those which can't legally be demanded such as matured obligation and those threat have prescribed.
In Article 1385 show the effect of Rescission that there is bo obligation to restore if nothing have beeb received. When the court declares a contract rescinded the parties must return to each other the object of the contract with its fruits and the price therefore with legal interest.
In this Article 1386 which in Contract into behalf of ward or absentee, rescission cannot take place wheb the court its validity even there is leison or not the reason is the law presume that court act in the interest of the ward or absentee. If there are two or more alienation the first shall br liable first and so successively.
As a general rule of Article 1389 an action to claim rescission must be commence within four (4) years from the date the contract was entered into .
Serrano, Kaela B.
1BSA-A
Good day, Atty! Here are my key takeaways from this video.
Article 1356
Form of a contract refers to the manner in which a contract is executed or manifested.
General rule:
contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present
Except:
-Law requires that a contract be in some form to be valid.
-Law requires that a contract be in some form to be enforceable or proved in certain way
-Law requires that a contract be in some form for the convenience of the parties or for the purpose of affecting third persons
Article 1357
The law may require a certain form of the convenience of the parties in order to make effective, as against third persons.
Article 1358
Things that must appear in a public document. All other contracts where amount involved exceeds 500 pesos must appear in writing, even private one.
Contracts that must be registered
-Sale or transfer of large cattle
-Chattel mortgage are the
Article 1380
rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescession is granted in the interest of equity. It is defective but a valid contract.
Rescession- a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract.
Article 1381
Types of rescissible contracts:
-Contracts enters into behalf of wards
-Contracts agreed upon in representation of absentees
-Contracts undertaken in fraud of creditors
-CContracts which refer to things under litigation.
The requisites of rescission of contracts undertake in fraud of creditors:
1. There must be an existing credit prior to rescssion, though it is not yet due or demandable.
2. There must be fraud on part of debtor.
3. Creditor cannot recover his credit, not being required that debtor is insolvent.
Other instances where contracts are rescissible are also discussed in this article.
Article 1382
Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. It must be judicially declared if the debtor is insolvent.
Article 1382
Rescission is only subsidiary meaning it comes next after the primary remedy. It can only be availed when proved that there is no other legal means aside from rescinding, even if the contract is considered rescissible because there are still other remedies. If the damage is repaired, rescission cannot take place.
Article 1384
Rescission is only to the extent of creditor's unsatisfied credit. Its effect is the contract need not to be set aside if damage can be repaired or covered by partial rescission. For the reason that the law is to preserve or respect the contract, not to extinguish it.
Effect of rescission:
there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. Rescission is not allowed if the party who demands rescission cannot return what he is obliged to and of the property is legally in possession of a third person who acted in good faith.
Article 1387
Alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title. Circumstances denominated as badges of fraud are also mentioned.
Article 1388
Purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
Article 1389
A general rule:
the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent.
Thank you, Atty!
Kian John Ace Turico
1BSA-A
Pamantasan ng Cabuyao
Good day, Atty., here are my key takeaways for the part 11 discussion of The Law on Obligations and Contracts
CHAPTER 3: FORM OF CONTRACTS
Article 1356 discussed the definition of form of contracts and the rules regarding form of contracts. Form of contracts refers to manner in which a contract is executed or manifested. As general rule, contracts are binding and therefore enforceable reciprocally by contracting parties as long as all requisites of a contracts are present or met except when law requires that the contract be some form to be valid, enforceable, and for the convenience of the parties or affected third parties. The provision also provides rare cases when the law requires a certain form of contracts for it validity. These are:
1. Donation of real property that must be in public instrument.
2. Donation of personal property that exceeds in the value of 5000 pesos must be in writing.
3. Sale of land through an agent requires that the authority of agent must be in writing otherwise, it is void.
4. Stipulation to pay interest must also be in writing otherwise, void.
5. Contract of partnership must be in public instrument if immovable to which shall be attached a signed inventory of immovable property contributed.
Article 1357 said that law requires a document for other special form for the convenience of the parties to be effective, as against the third person. It is no indispensable since they are allow ed by law to compel the other to observe proper form.
Article 1358 speaks about what must appear in a public document. Aside from four given public document, it is said that all other contracts where amount involves exceeds 500 pesos must appear in writing.
CHAPTER 6: RECISSIBLE CONTRACTS (FORM OF DEFECTIVE CONTRACT)
Article 1380 said that contracts may be rescinded in cases established by law. The provision discussed the definition of rescissible contracts, its validity, rescission and the requisites of rescission. Rescissible contracts are defective contracts but still valid, because of a remedy given by law which is known as rescission. The rescission is given because of interest of fairness and equity. Rescission may be availed through the following requisites:
1. Contract must be validly agreed upon.
2. Lesion to one party or to third person must be present.
3. Rescission must be based upon a case provided by law
4. Rescission is the only remedy to obtain reparation for damages.
5. Party asking for rescission must be able to return what he is obliged to restore.
6. Object of contracts must not legally be in the hands of third person who did not act in bad faith.
7. Period for filing rescission must not be prescribed.
Article 1381 provides five types of rescissible contracts.
1. Contracts entered into behalf of wards- wards are persons under guardianship due to incapacity.
2. Contracts agreed upon in representation of absentees- absentee refers to a person being unknown or persons who does not appear after sufficient elapsed of period of time.
3. Contracts undertaken in fraud of creditors- an act of debtor in trying to alienate all his properties beyond the reach of creditor. It provides the following requisites:
3.1 An existing credit prior to the contract to be rescinded.
3.2 Fraud in the part of debtor, either presumed or proved.
3.3 Creditor cannot recover his credit in any manner.
4. Contracts which refer to things under litigation
5. Other instances that contracts are rescissible:
5.1 Partition- co-heirs received things valued at least one-fourth than the share he is entitled.
5.2 Lessor or lessee do not comply to their obligation, aggrieved party may ask for rescission and indemnification for damages.
5.3 Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price.
Article 1382 said that payment made by the debtor who is in the state of insolvency for the fulfillment of his obligation is rescissible. The insolvency of the debtor must be judicially declared.
Article 1383 speaks about rescission being a subsidiary only. It is said that rescission cannot be instituted except when the party has no other legal means to obtain reparation of damages. In other words, it is not the principal remedy.
Article 1384 speaks about the effect, extent, and reason for rescission. For its extent, only to the extent of creditor’s unsatisfied credit. For the effect, entire contract need not be set aside if damage can be repaired or covered by partial rescission. For the reason is to preserve the contract and not to extinguish.
Article 1385 said that when the court declares rescission, parties are bound to return what they received together with its fruits and price with legal interest. Aside from that, the provision also discussed where rescission is not allowed and these are:
1. When the party demanded for rescission cannot return what he should return under the contract
2. When the property is in legal possession of third person who acted in good faith.
Article 1386 said that when a ward or absentee entered into a contract and law approved its validity, then it cannot be rescinded regardless if there is lesion or not. The reason behind this is because law presumed that the court acts in interest of ward or absentee.
Article 1387 talks about when alienation in fraud of creditors are presumed. It is presumed in alienation of gratuitous title and alienation by onerous title. In addition, it also discussed the circumstances denominated as badges of fraud. (1) Consideration of conveyance is fictitious, (2) Transfer made by debtor after suit has begun and is pending against him, (3) Sale upon credit by an insolvent debtor, (4) Transfer of all his property by a debtor, especially when he is insolvent, (5) the transfer is made between father and son, when there are present some or any of the above circumstances, (6) vendee knows that the vendor had no properties other than that sold.
Article 1388 said that purchaser who acted in bad faith must return the same if sale is rescinded. If there are two or more acquirer of bad faith, the first one should be liable first and successively.
Article 1389 talks about the period in filing action for rescission. As general rule, it commenced within four years from the date the contract was entered into. The exceptions to the general rule are when a person under the guardianship, period shall begin from termination of incapacity and when a person is an absentee, the period will begin from the time the domicile is known. Aside from period, it also talks about the person who are entitled to bring action. They are:
1. Injured party or the defrauded creditor.
2. Heirs, assigns, or successor in interest.
3. Creditors of the above entitled to subrogation.
Thank you for the video lecture, Atty.
Padillo, Francheska Agatha V.
1BSA-B
PNC
Good day Atty. Here is the summary of what I've learned in this video lecture.
Article 1356. Form of contract refers to the manner in which a contract is executed or manifested. As a general rule, contracts are not required to be reduced into a certain form. But there are exemptions:
1. The law requires that a contract be in some form to be valid.
2. The law requires that a contract be in some form to be enforceable or proved in a certain way.
3. The law requires that a contract be in some form for the convenience of the parties or for the purpose of affecting third persons.
Article 1357. The law require a certain form for the convenience of the parties in order to make effective, as against third persons. The special form is not indispensable since they are allowed by law to compel the other to observe the proper form and this right may be exercised simultaneously with action to enforce the contract.
Article 1358. The following must appear in a public document: (1) acts and contracts which have fpr their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2, and 1405, (2) the session, reputation or renunciation of here with rights or of those of conjugal partnership of gains, and (3) the power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should prejudice a third person.
Article 1380. Rescissible Contracts - those balidly agreed upon because all essential elements exist therefore legally effective but remedy of recission is grabted in the interest of equity.
Rescission - a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract.
Requisites of Rescission
1. The contract must be validly agreed upon.
2. There must be lesion or pecuniary prejudice to one of the parties or to a third person.
3. The rescission must be based upon a case especially provided by law.
4. There must be no other legal remedy to obtain reparation for the damage.
5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract
6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith.
Article 1381. Types of Rescissible Contracts:
Contracts: (1) entered into in behalf of wards, (2) agreed upon in representation if absentees, (3) undertaken in fraud of creditors, and (4) refer to things under litigation.
Other Instances where Contracts are Rescissble:
1. Partition
2. If the lessor or lessee should not comply with their obligations
3. Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price.
Article 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled.
Article 1383. Rescission is only subsidiary and can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art 1381.
•If damage is repaired, rescission cannot take place.
Article 1384. Rescission
Extent - Only to the extent of creditor's unsatisfied credit.
Effect - Entire contract need not be set aside if damage can be repaired or covered by partial rescission
Reason - The law is to preserve or respect the contract, not to extinguish it.
Article 1385. The effect of rescission is there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract whith its fruits and the price thereof with legal interest.
Article 1386. In contracts entered into behalf of ward or absentee, rescission caanot take place when the court approved its validity, even there is lesion or not. The reason is law presumes that court acts in the interest of the ward or absentee.
Article 1387. Alienations presumed in fraud of creditors: (1) by gratituitous title, and (2) by onerous title.
As a general rule of Article 1389, the action to claim rescission must be commenced within four years from the date contract wast entered into.
Thank you Atty. for this video lecture.
Aliah Greicel E. Lacanilao
1BSA-A
Pamantasan ng Cabuyao
*Contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which contract has been entered into, provided all the three essential requisites for their validity are present.
CONTRACT = FORM OF VALIDITY
1. Donation of real property = public document
2. Donation of personal property the value of which exceeds P5000.00 = donation and acceptance must be in writing
3. Sale of land through an agent = authority of agent must be in writing
4. Stipulation to pay interest = must be in writing
5. Contract of partnership = if an immovable is contributed, it must be in public instruments
*The law may require a certain form for the convenience of the parties against third persons.
*The special form is not indispensible since they are allowed by law to compel the other to observe proper form.
The following must appear in a public document:
1. Acts and contracts
2. Session, reputation or renunciation of here with rights
3. The power to administer property
4. Cession of actions of rights
*All other contracts where amount involved exceeds P500 must appear in writing
• Sale or transfer of large cattle and chattel mortgage are contracts that must be registered
Defective Contracts
•Rescissible contracts - those validly agree upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity
Requisites of Rescission
1. Contract must be validly agreed upon
2. There must be lesion or pecuniary prejudice to one of the parties or to a third person
3. Must be based upon a case especially provided by law
4. No other legal remedy to obtain reparation for the damage
5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract
6. Object of the contract must not legally be in the possession of third persons who did not act in bad faith
7. The period for filling the action for rescission must not have prescribed
Types of Rescissible Contracts:
1. Contracts entered into in behalf of wards (under guardianship of another)
2. Contracts agreed upon in representation if absentees
3. Contracts undertaken in fraud of creditors
4. Contracts which refer to things under litigation
Other Instances where Contracts are Rescissible:
1. Partition - when one co-heirs received things valued at least 1/4 lesser than the share he is entitled
2. If the lessor or lessee should not comply with their obligations
3. Vendee may rescind when the real estate sold is less than or exceeds 1/10 of the agreed price
*When the payment is made by an insolvent debtor, it is rescissible.
*When a debtor is insolvent, it must be judicially declared.
*Rescission is only subsidiary
*If damage haa been repaired, rescission cannot take place
Effect of rescission - there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
*In contracts entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even there is lesion or not as the law presumes that the court acts in the interest of the ward or absentee.
Alienations Presumed in Fraud of Creditors:
1. Alienation by gratuitous title
2. Alienation by onerous title
*The purchaser in bad faith must return the same if the sale is rescinded and if it is impossible to do so, he must indemnify. When there are two or more, first shall be liable first and so on.
*The action to claim rescission must be commenced within 4 years from the date the contract was entered to except if the person is under guardianship or he is an absentee.
Persons Entitled to Bring Action:
1. The injured party or the defrauded creditor.
2. His heirs, assigns, or successors in interest
3. The creditors of the above entitled to subrogation
Padayao, Louisa Marie O.
1BSA-B
Good day Atty.
This video lecture, first, talks about the Chapter 3 of Contracts - the Different Forms of Contracts. Beginning from the title, this refers to the manner in which how a contract is executed or manifested. There is a general rule which says that contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present. However, there are three exceptions to this: (1) The law requires that a contract to be in some form to be valid; (2) The law requires that a contract to be in some form to be enforceable or proved in a certain way, and; (3) The law requires that a contract to be in some form for the convenience of the parties or for the purpose of affecting third persons. Special forms are not indispensable since they are allowed by law to compel the other to observe the proper form, and this right may be exercised simultaneously with the action to enforce the contract.
A public instrument/document is a form which requires that a contract must be reduced in writing and duly notarized by a notary public, and therefore it is also called as notarized documents. The following must appear in a public document: (1) Acts and contracts which have for their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2, and 1405; (2) The session, reputation, or renunciation of here with rights or of those of conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in public document or should prejudice a third person, and; (3) The cession of actions of rights proceeding from an act appear in a public document.
Jumping to the second part, Chapter 6, which talks about rescissible contracts. These are contracts which are validly agreed upon because all essential elements exist, therefore, are legally effective but remedy of rescission is granted in the interest of equity. It is only a subsidiary remedy. It can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art. 1381. Rescission is a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract.
There are seven requisites for the remedy of rescission be granted: (1) The contract must be validly agreed upon; (2) There must be lesion or pecuniary prejudice to one of the parties or to a third person; (3) The rescission must be based upon a case especially provided by law; (4) There must be no other legal remedy to obtain reparation for the damage; (5) The party asking for rescission must be able to return what he is obliged to restore by reason of the contract; (6) The object of the contract must not legally be in the possession of third persons who did not act in bad faith, and; (7) The period for filing the action for rescission must not have prescribed. The four types of rescissible contracts are: (1) Contracts entered into in behalf of wards - these are persons under guardianship or those who cannot act on their own due to some incapabilities; (2) Contracts agreed upon in representation if absentees - persons who does not appear after a sufficient lapse of period of time; (3) Contracts undertaken in fraud of creditors - an act of debtor to alienate all his properties beyond the creditor’s reach -, and; (4) Contracts which refer to things under litigation. The requisites of rescission of contracts undertaken in fraud of creditors is that there must be an existing credit prior to rescission, though it is not yet due or demandable, there must be fraud on part of debtor (maybe presumed or proved), and creditor cannot recover his credit, not being required that debtor is insolvent.
However, there are other instances where contracts are rescissible: (a) Partition - when any of the co-heirs received things valued at least one-fourth than the share he is entitled; (b) If the lessor or lessee should not comply with their obligations, and; (c) Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price. It was said that there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the effect is that the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. There are cases when rescission is not allowed. First is if the party who demands rescission cannot return what he is obliged to, and, if the property is legally in possession of a third person who acted in good faith. In cases when the purchaser is in bad faith, he must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. In cases when there are two or more, the first shall be liable first, and so on, successively.
There is a general rule which says that the action to claim rescission must be commenced within four (4) years from the date the contract was entered into. The exceptions is when the person is under guardianship, the beginning of period occurs upon the termination of incapacity, and when the person is an absentee, the beginning period is when his domicile has become known.
This video lecture is indeed helpful for me to easily take notes and understand the concepts since it has been summarized properly. Thank you again for this, Atty.
Quiom, Christine B.
1BSA-B
Pamantasan ng Cabuyao
Good day Atty. The following is a summary of what I learned in this lecture.
Article 1356 pertains to form of a contract. This is a manner in which contract is executed or manifested.
As a general rule, any form is valid provided that the 3 essential requisites is present unless the law requires some formalities in order that contract will be enforceable.
Article 1357 states that law may require a certain forma for the convenience of the parties in order to make effective, as against third persons.
Article 1358 enumerates certain requisites that must appear in a public document. The contract that must be registered is contract of sale or transfer of large cattle and chattel mortgage.
A public document/instrument is an agreement in writing that must be duly notarized by a notary public.
Article 1380 refers to rescissible contracts, one of the kind of defective contracts that are validly agreed upon because all essential elements are present however rescission as remedy is granted in the interest of fairness or equity.
Rescission- is a cancellation of the contract.
Article 1381 provides the type of rescissible contracts.
Contracts that are;
* entered into in behalf of wards
* agreed upon in representation of absentees
* undertaken in fraud of creditors, and
* refers to things under litigation.
Article 1382 states that rescission is also applicable when in a state of insolvency, payment is made for obligations to whose fulfillment the debtor cannot be compelled.
Article 1383 discusses that rescission is only a subsidiary remedy meaning that it can be availed only if proved that there is no other legal means aside from rescinding.
Article 1384 states that rescission is only to the extent of creditors unsatisfied credit. Its reason is to preserve or respect the contract, not to extinguish it.
Article 1385 gives the effect of rescission which is the parties must return each other the object of the contract with its fruits and the price thereof with legal interest.
Article 1386 occurs when the court approved the validity of contracts entered into in behalf of ward or absentee, rescission cannot take place. It is because the law presumes that court acts in the interest of the ward or absentee.
Article 1387 indicates when alienation presumed in fraud of creditors. The alienation by gratuitous title and by onerous title.
Article 1388 provides the liability of purchser in bad faith. This is to return the same if the sale is rescinded and if it is impossible then there's should be indemnification.
Article 1389 gives the general rule that the action to claim rescission must be commenced within four years from the date the contract was entered into except for the person under guardianship and absentees.
Person entitled to bring action for rescission:
* injured party or defrauded creditor
* heirs, assigns, or successors
* creditors entitled to subrogation
Danica May J. Pajac
1BSA-A
Pamantasan ng Cabuyao
Good day Attorney!
Here some of my knowledge and learnings from your video discussion.
Chapter 2
Form of Contracts
Article 1356
Form of a contract
It is a manner by which the contract was executed.
As the general rule of Form of contract, it is binding thus whatever may be the form is entered, all three important requisites for the validity are present.
Article 1356
Exceptions:
1. The law required that the contract in some form is to be valid.
2. It should be proved in a certain way.
3. It is for the purpose of the third party.
When it comes to the donation of real property the amount is five thousand pesos but in fraud the amount is five hundred pesos only when it comes to sale of personal profit.
The five nation of real property regardless of the value is required to be in formalities.
Article 1357
The law may require a certain form for the convenience of the party in able to be effective.
Article 1358
The acts and contracts that obtain their object, creation, transmission, notification of real rights over immovable property, the sales in real property is under the law of Arts 1403 No 2 and 1405
The session or reputation of here with rights.
The power to administer property, should appear in a public document.
The cession of action of rights proceeding from an act appear in a public document.
Chapter 6
Rescissible contract
or also known as defective contracts.
Article 1380
Resistible contract are those validly agreed upon because all of the elements are exist thus it is effective but remedy of recession is granted in the interest of equity.
Requisites of rescission
The contract must be validly agreed.
There must be a lesion to one of the parties or third person
The rescission must be based upon a case that provided by the law.
There must be no other legal remedy.
Article 1381
Types of resistible contract
Contract must entered into in behalf of wards
Contract must agreed in representation if there is absentees.
Contracts undertaken in fraud of creditors.
Requisites of rescission of Contracts Undertaken in fraud of creditors.
There must be an existing credits prior to rescission though it is not yet due or demandable.
There must be in fraud of debtor
Creditor cannot recover his or her credit.
Other instances where contracts are resistible
Partition means he will considered as entitled if any of the co heairs receive things valued at least on fourth than the share
If the lessor should not comply with their obligation.
Article 1382
the payments that made in a state of insolvency for obligation to those fulfillment th debtor could not be coming compelled.
Article 1383
Rescission is only subsidiary
it can be implement if it id proved that there is no other legal instead it is covered.
Article 1384
It can be extent if only the extent to creditor unsatisfied credit.
Effect when contract need not be set aside.
Article 1385
Article of rescission
The object of the contract with its fruit and the price thereof with legal interest.
When rescission is not allowed if the party who demand rescission can't return what he is obliged and if the property is legally in possession of a third person who acted in good faith.
Article 1386
Rescission cannot take place when the court approved its validity even there is lesion or not.
Article 1387
Alienation presume in fraud of creditors
Alienation by gratuitous tide
by onerous title.
Article 1388
The purchaser with bad faith must return the same
When there are two or more first shall be liable and do on successfully.
Article 1389
The action to claim rescission must be commenced within four years.
Capillo, Aiberlyn C.
IBSA-A PNC
Good day atty, the following are the summary of my learnings from this video.
Chapter 3: Forms of Contracts
Article 1356- Contracts may be oral, or in writing, or partly oral and partly written. It may be express when the parties expressly set forth their intentions, or implied when their intentions may be inferred form their actions or conducts.
Article 1357- In certain cases, a certain form is required for the convenience of the parties in order that the contract may be registered in the proper registry to make it effective.
Article 1358- Public document is required only for the convenience and greater protections of the parties and to make the contract binding as against third persons.
Chapter 4: Reformations of Instruments
Article 1359- Reformation is the remedy allowed by law by means of which a written instrument is amended or rectified so as to express or conform to the real agreement or intention of the parties when by reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express such agreement or intention.
Article 1360- In case of conflict between the provisions of the New Civil Code and the principles of the general law on reformation, the former prevails.
Article 1361- Mutual mistake is mistake of fact that is common to both parties of the instrument which causes the failure of the instrument to express their true intentions.
Article 1362- The right to ask for reformation is granted only to the party who was mistaken in good faith.
Article 1363- Remedy of reformation may be availed of the party who acted in good faith.
Article 1364- Neither party is responsible for the mistake. Hence, either party may ask for reformation.
Article 1365- The reformation of the instrument is proper: otherwise, the true intention of the parties would be frustrated.
Article 1366- There shall be no reformation on the following cases: Simple donations inter vivos wherein no condition is imposed, wills, and when the real agreement is void.
Article 1367- The party who brings an action to enforce contract cannot subsequently ask for its reformation.
Article 1368- These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled.
Article 1369- Rules of court shall govern procedures for the reformation of instruments.
Chapter 5: Interpretation of Contracts
Article 1370- Interpretation of a Contract is the determination of the meaning of the terms and words used by the party in their written contracts.
Article 1371- Contemporaneous and subsequent acts are relevant in the determination of the intention of the contracting parties.
Article 1372- Where in a contract there are general and special provisions covering the same subject matter, the latter control over the former when the two cannot stand together.
Article 1373- When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation.
Article 1374- Contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instrument and not from particular words, phrases, or clauses.
Article 1375- If a word is susceptible of two or more meanings, it is to be understood in that sense which is most in keeping with the nature and the object of the contract in line with the cardinal rule that the intention of the parties must prevail.
Article 1376- It is necessary to prove the existence of usage or custom, the burden of proof is upon the party alleging it.
Article 1377- Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity.
Article 1378- If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules.
Article 1379- The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts.
Chapter 6: Recissible Contracts
Article 1380- Recissible contracts are those validly agreed upon because all the essential elements exist and therefore, legally effective, but in cases established by law, the remedy of recission is granted in the interest of equity.
Article 1381- This article enumerates the types of recissible contracts: Contracts entered into on behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refer to things under litigation, and all other contracts specially declared by law to be subject to recission.
Article 1382- The payments must have been made “for obligations to whose fulfillment the debtor could not be compelled at the time they were effected.”
Article 1383- Recission is not a principal remedy, means that it can be availed of only if the injured party proves that he has no other legal means aside from rescinding the contract to obtain redress for the damage caused.
Article 1384- The entire contract need not be set aside by recission if the damage can be repaired or covered by partial recission.
Article 1385- The purpose of recission is to restore the parties to their original situation.
Article 1386- If contract entered into on behalf of a ward or absentee has been approved by the court, recission cannot take place because it is valid whether there is lesion or not.
Article 1387- This article establishes prima facie presumptions of fraud in the case of alienation by the debtor of his property ( alienation by gratuitous title and alienation by onerous title).
Article 1388- The purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded and if impossible, he must indemnify the former.
Article 1389- The action to claim recission must be commenced within four years from the date the contract was entered into.
Thank you Atty.
Panganiban, Descerey R.
1 BSA-A
Good Day Atty. These are my takeaways in this video lecture
According to Article 1356, the form of contracts relates to the way in which a contract is executed or expressed. Article 1380 defines rescissible contracts as those that are lawfully agreed upon since all necessary components are present. Rescission is a legal remedy for recouping losses by restoring things to their original state before to the contract's execution. Payments made in a state of bankruptcy for commitments whose fulfillment the debtor could not be compelled to complete are prohibited under Article 1382. Contracts are also rescindible in several other circumstances, such as when any of the co-heirs obtained items worth at least one-half of the contract's value.
Olaivar, Jayvee D.
1BSA-A
Pamantasan ng Cabuyao
Chapter 3: Form of Contracts (Article 1356-1358)
It talks about the forms of contract which can be formal, required by the law to be in some manner where a contract is manifested a executed, and informal, can be executed in any whatever forms may it be oral, written or partly oral and partly written. Forms refers to the manner in which a contract is manifested and executed. General Rule is that forms in a contract is not required as long as it contains all the essential requisites COC except for the purpose of validity, enforceability and convenience. The right to compel the other party to execute the necessary form applies only if the form is needed for the convenience and contract is valid and enforceable. The following must appear in a public document; creation, transmission, modification, or extinguishment of real rights over immovable property, renunciation of hereditary rights, authority to administer or manage property, cession of rights and any other contracts where the amount involved is five hundred pesos above.
Chapter 6: Rescissible Contracts (Article 1380-1389)
Rescissible contracts are those validly agreed upon because all the essential elements exist and therefore, legally effective, but in cases established by law, the remedy of rescission is granted in the interest of equity. This article 1381 enumerates the types of rescissible contracts: Contracts entered into on behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refer to things under litigation, and all other contracts specially declared by law to be subject to rescission. The payments must have been made “for obligations to whose fulfillment the debtor could not be compelled at the time they were effected.”Rescission is not a principal remedy, means that it can be availed of only if the injured party proves that he has no other legal means aside from rescinding the contract to obtain redress for the damage caused. The entire contract need not be set aside by rescission if the damage can be repaired or covered by partial rescission. The purpose of rescission is to restore the parties to their original situation. If contract entered into on behalf of a ward or absentee has been approved by the court, rescission cannot take place because it is valid whether there is lesion or not. This article establishes prima facie presumptions of fraud in the case of alienation by the debtor of his property ( alienation by gratuitous title and alienation by onerous title). The purchaser in bad faith who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded and if impossible, he must indemnify the former. The action to claim rescission must be commenced within four years from the date the contract was entered into.
Uy, Joselle Angelu C.
1BSA-A
Pamantasan ng Cabuyao
Good Evening Atty. Here are my key takeaways from the video lecture.
Article 1356
Form of a contract refers to the manner in which a contract is executed or manifested (Article 1356).
As a general rule, contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present
Exceptions:
1. the law requires that a contract be in some form to be valid
2. to be enforceable or proved in a certain way, and;
3. to be in some form for the convenience of the parties of for the purpose affecting third persons.
Article 1357
the law may require a certain form of the convenience of the parties in order to make effective, as against third persons.
Article 1358
states what are the things that must appear in a public document. All other contracts where amount involved exceeds 500 pesos must appear in writing, even private one. Sale or transfer of large cattle and chattel mortgage are the contracts that must be registered.
Chapter 6 Rescissible contracts
Article 1380 provides that rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of recession is granted in the interest of equity. It is defective but a valid contract. On the other hand,
rescission means a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract. The requisites of rescission are also discussed under this article.
Types of rescissible contracts are tackled under article 1381. Those are contracts enters into
1. behalf of wards
2. contracts agreed upon in representation of absentees
3. contracts undertaken in fraud of creditors, and
4. contracts which refer to things under litigation.
The requisites of rescission of contracts undertake in fraud of creditors are as follow:
1. There must be an existing credit prior to rescission, though it is not yet due or demandable.
2. There must be fraud on part of debtor.
3. Creditor cannot recover his credit, not being required that debtor is insolvent.
Article 1382
states that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. It must be judicially declared if the debtor is insolvent.
Article 1383
provides that rescission is only subsidiary meaning it comes next after the primary remedy. It can only be availed when proved that there is no other legal means aside from rescinding, even if the contract is considered rescissible because there are still other remedies. If the damage is repaired, rescission cannot take place.
Subsidiary- comes next after the first
primary- comes first (counterpart of subsidiary)
article 1384
rescission is only to the extent of creditor's unsatisfied credit. Its effect is the contract need not to be set aside if damage can be repaired or covered by partial rescission. For the reason that the law is to preserve or respect the contract, not to extinguish it.
ARTICLE 1385
Effect of rescission is, there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
Rescission is not allowed:
1. if the party who demands rescission cannot return what he is obliged to
2. If the property is legally in possession of a third person who acted in good faith.
Article 1386
In contracts entered into in behalf of wards or absentees, rescission cannot take place when the court approved its validity, even there is lesion or not.
REASON: because the law presumes that court acts in the interest of the ward or absentee.
Article 1387
provides the alienations presumed in fraud of creditors which are alienation by gratuitous title and alienation by onerous title.
Circumstances denominated as badges of fraud are also discussed.
1. The consideration of conveyance is fictitious or inadequate.
2. A transfer made by the debtor after suit has begun and is pending against him.
3. A sale upon credit by an insolvent debtor.
Article 1388
states that the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
-When there are 2 or more, first shall be liable first, and so on, successively.
Article 1389
General Rule: the action to claim rescission must be commenced within 4 years from the date the contract was entered into except when a person is under guardianship or is absent.
Paguigan, Lorie Jean C.
Pamantasan ng Cabuyao
1BSA-A
A rescissible contract is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party. The court can therefore rescind, or set aside, the contract for equitable reasons.
Classification of Defective Contracts:
Voidable or Annullable contracts - those where the consent of one party is defective either because of incapacity to give consent to a contract, or where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud
Claris M Paligar
1BSA-A
Here are some of my notes about this topic.
A rescissible agreement is one that was gone into lawfully by the contracting parties yet has brought about financial harm to one of the gatherings or an external gathering. The court can subsequently cancel, or put away, the agreement for fair reasons.
Rescission under Article 1191 is a consequence of what individuals typically call as break of agreement. In complementary agreements, parties have shared commitments and the commitment by one or the other party to do, not to do or to give something is really the reason for the other party to consent to likewise do, not do or offer something as a trade off. So when one doesn't play out his commitments under his agreement, the other party has cures under the law. Under the said Article 1191, the harmed party can pick among satisfaction and rescission, with installment of harms regardless. This implies that the harmed party can either force the blameworthy party to play out his piece of the agreement and guarantee for harms because of the penetrate, or it can cancel the agreement and furthermore guarantee for harms.
Azada, Leonardo Daniel T.
1BSA-A
PnC
Good day Atty. Here are my key takeaways from this video lecture, form of contracts, and rescissible contracts.
Article 1356 - 1358: Form of contracts refers to the manner in which a contract is executed or manifested, certain forms may require to the contracting parties by law in order to make effective, as against third persons. There is also different information that must appear in a public document depending on the contract made by both the contracting parties.
Article 1380: Rescissible contracts are those validly agreed upon because all essential elements exist but the remedy of rescission is granted in the interest of equity.
Article 1381: Types of rescissible contracts are those contracts entered into on behalf of wards, agreed upon in representation if absentees, undertaken in fraud of creditors, and those contracts in which refer to things under litigation.
Article 1382: If the person is in the state of insolvency, then that particular person could not be compelled.
Article 1383: This article states that rescission is only a subsidiary remedy.
Article 1384: Rescission has an extent of creditor's unsatisfied credit, if the contract could still be repaired or covered, then partial rescission could be enforced because the law is to preserve or respect the contract, not to extinguish it.
Article 1385: This article states that both parties must return what they had received from each other, with its fruits and price with legal interest.
Article 1386: In a contract entered into in behalf of ward or absentee, rescission cannot take place when the court approved its validity, even if there is a lesion or not.
Article 1387: Alienations presumed in fraud of creditors are by gratuitous and onerous titles.
Article 1388: The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
Article 1389: A rescissible contract must be commenced within four years from the date the contract was entered into except if the exceptions could be applied by the contracting parties.
Sahurda, Mary Lady Lou C.
1BSA-A
Pamantasan ng Cabuyao
Chapter 2 - Form of Contracts
Article 1356 refers to the form of a contract which is the manner in which a contract is executed or manifested. As a general rule, contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into.
Article 1357 may require a certain form for the convenience of the parties in order to make effective, as against third person.
Article 1358 states that all contracts where amount involved exceed Five hundred pesos must appear in writing, even private one. Sale or transfer of large cattle and chattel mortgage must be registered as a contract.
Chapter 6 - Rescissible Contracts
Article 1380 tackles about rescissible contracts that are validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Rescission, on the other hand, is a remedy granted by law in order to secure the reparation of damages by restoring things to their same condition prior to the celebration of the contract. The requisites of rescission are:
1. The contract must be validly agreed upon.
2. There must be lesion or pecuniary to one of the parties or to a third person.
3. The rescission must be based upon a case especially provided by law.
4. There must be no other legal remedy to obtain reparation for the damage.
5. The party asking for rescission must be able to return what he is obliged to restore by reason of the contract.
6. The object of the contract must not legally be in the possession of third persons who did not act in bad faith.
7. The period for filing the action for rescission must not have prescribed.
Article 1381 enumerated 4 types of rescissible contracts:
1. Contracts entered into in behalf of wards
2. Contracts agreed upon in representation if absentees
3. Contracts undertaken in fraud of creditors
4. Contracts which refer to things under litigation
Article 1382 clarified that payments made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled. Insolvent debtor must be judicially declared.
Article 1383 tackles about rescission being only subsidiary because it can only be availed when proved that there is no other legal means aside from rescinding. However, rescission cannot take place if the damage is repaired.
Article 1384 only lets rescission up to the extent of creditor’s unsatisfied credit. The entire contract need not to be set aside if damage can be repaired or covered by partial rescission because the law is to preserve or respect the contract, not extinguish it.
Article 1385 explained that the effect of rescission will be no more obligation to restore if nothing has been received. But when the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. However, rescission is not allowed if the party who demands rescission cannot return what he is obliged to or if the property is legally possessed by a third person who acted in good faith.
Article 1386 states that rescission cannot take place when the court approved its validity in contracts entered into behalf of ward or absentee, even there is lesion or not. It is because the law presumes that the court acts in the interest of the ward or absentee.
Article 1378 presumed that alienations in fraud of creditors are by gratuitous title or by onerous title.
Article 1388 talks about the purchaser in bad faith who must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause. But when there are two or more, first shall be liable first, and so on, successively.
Article 1389 states the general rule when the action to claim rescission must be commended within four years from the date the contract was entered into.
Thank you for the video lecture, Atty. Reyes!
Pamplona, Maynalyn Y.
Pamantasan ng Cabuyao
1BSA-A
Chapter 3: Form of Contracts
I have learned that the form of a contract refers to how a contract was executed or manifested. It may be oral, or in writing, or partly oral and partly in writing. It is classified as formal and informal. As a general rule, it is not required to reduce in a certain form but there are exceptions. These exceptions are when the law requires a certain form for a contract to be valid, to be enforceable or proved in a certain way, and in order for the convenience of the parties in affecting the third party. It must be in public documents or instruments when a contract is about the donation of real property and contract of partnership if an immovable is contributed. While the donation of the personal property exceeds 5,000.00, the sale of land through an agent, and stipulation to pay interest must be in form of writing otherwise it will be void. In article 1357, it is said that sometimes, for the convenience of both parties the law may require a certain form. Under article 1358, there are some things that must be included in a public document. Some contracts, such as the sale or transfer of a large chattel and a chattel mortgage, must also be registered. While all other contracts where the amount exceeds 500.00 must appear in writing, even a private one.
Chapter 6: Rescissible of Contracts
Rescissible contracts are those contracts although defective are actually valid contracts. Even if it is a defective contract, the law gives the contracting party to have a remedy of rescission. There are types of rescissible contracts. These are (1)contracts entered into on behalf of wards, (2)contracts agreed upon in representation of absentees, (3)contracts undertaken in fraud of creditors, (4)contracts that refer to things under litigation. However, if the payments are made when the debtor is insolvent for obligations, the debtor cannot be compelled, which is also rescissible(1382). Rescission is only a subsidiary remedy meaning it is only availed if there is no other legal remedy. Even though the contract is considered rescissible covered in article 1381, that does not necessarily mean that rescission of contracts is the best option. Additionally, rescission shall be only to the extent necessary to cover the damages caused. When a court declares a contract rescinded, the parties should render the object and the price with legal interest. Rescission is not allowed (1) if the party who demands rescission cannot return what he is obliged to and (2) if the property is in legal possession of a third person who acted in good faith. Furthermore, contracts entered into on behalf of wards and contracts agreed upon in representation of absentees, whether there is a lession or not, cannot be revoked once the court has acknowledged their validity. It is explained in article 1387 that alienation by gratuitous title and alienation by onerous title are alienations that are presumed in fraud of creditors. A purchaser acting in bad faith may be compensated if he is unable to return the item if the sale is canceled for whatever reason. On the other hand, when there are two or more, the first should be held accountable first, followed by the second, third, and so on. In article 1389, an action to claim rescission must be commenced within 4 years from the date contract was entered into. However, there are exceptions, (1) when the person is under guardianship, then the four years will commence to run upon the termination of incapacity, and (2) if a person is an absentee and his domicile is known, then the four years period will commence to run.
Thank you!
Marjes, Kimberly Yrah R.
1BSA-B
Good day Atty. Here are my takeaways on your video lecture.
In chapter 2, forms of contract, which refers to the manner in which contract is executed as defined in Article 1356. As a general rule, contracts are not required to be reduced in a certain form unless the law requires that a contract be in some form to be valid or the law also requires the contract to be in some form to be enforceable or in some form for the convenience of the parties or for the purpose of affecting third person. Now, article 1357 implies that the law may require a certain form for the convenience of the parties in order to make effective, as against third person. This article also allow both the action to compel or to order the other party to observe proper formalities required by law. Article 1358 contract that must appear in a public document and that all other contracts, private and public, where amount exceeds 500 pesos must appear in writing. Moving to chapter 6, rescissible contract which is define by 1380 as those validity agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. While 1381 implies the types of rescissible contract such as contracts entered into in behalf of wards, agreed upon in representation of absentees, undertaken in fraud of creditors and which refer top thing under litigation. The article also imply the requisites of rescission of contracts undertaken in fraud of creditors (1) there must be a debt or obligation prior to rescission regardless of its due and demandability (2) There must be fraud in the part of the debtor (3) creditor cannot recover his credit, not being required that the debtor is insolvent. I have also learned that the payment made by insolvent debtor is rescissible according to article 1382. However under 1383, rescission is only subsidiary which means contract can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by article 1381. While article 1385 discusses the effect of a total rescission wherein the parties are obliged to return the object, fruit and the price with legal interest. The article also enumerates the different circumstances where rescission is not allowed. First is when the party who demands rescission cannot return what he is obliged to. second is if the property is legally in posession of a third person who acted in good faith. The contract entered into in behalf of ward, rescission cannot take place when the court approved its validity, regardless the presence of lesion. While Article 1387 implies the alienations presumed in fraud of creditors and circumstances as badges of fraud. Now Article 1389 states that 4 years from the date the contract was entered into was the valid period to exercise the action to claim rescission unless when the person is under guardianship, the period will terminate upon attaining the capacity, and when the person is an absentee then his domicile is known then the 4 year period will commence to run. The article also enumerates the persons entitled to bring action in a rescissible contract. Thank you for the lecture Atty.
Panganiban, Aubrey L.
1BSA-A
Good day, Atty. Here’s what I’ve learned from the video about Chapter 2-Form of Contracts:
Art. 1356 gives definition to the form of contract, refers to the manner in which a contract is executed or manifested. As a general rule, contract is enforceable by the contracting parties, whatever may be the form as long as it provides the essential requisites unless, the law requires that it will be in some form to be valid or provided in a certain way, or in some form of the convenience of the parties.
Art. 1357 talks about form of the convenience of the parties. The law may require a certain form of the convenience of the parties in order to make effective, as against third persons.
Art. 1358 talks about contracts which must appear in a public document; the creation of real rights over immovable property, cession or renunciation of hereditary rights or those of conjugal partnership of gains, power to administer property, and cession of actions or rights. These contracts are required to appear in a public instrument.
Chapter 6-Rescissible Contracts
Art. 1380 gives definition to rescissible contracts, validly agreed upon because all the essential elements exist and, therefore, legally effective but remedy of rescission is granted in the interest of equity. The law gives the other party the remedy of rescission or cancellation of contract in the interest of equity by means of restoration of things to their same condition prior to the celebration of said contract. It has the ff. requisites: the contract must be validly agreed upon, there must be lesion or pecuniary prejudice to one of the parties or third person, the rescission must be based upon a case, there must be no other legal remedy, the party asking for rescission must restore what he is obliged to, the object of the contract must not legally be in the possession of third person, and the period for filing the action for rescission must not have prescribed.
Art. 1381 talks about the cases of rescissible contracts; contracts entered into in behalf of words, or agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and which refer to things under litigation. There are other instances where contracts are rescissible, first, partition or when co-heirs received things valued at least one-fourth than the share he is entitled. Next, if the lessor or lessee should not comply with their obligations. Lastly, vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price.
Art. 1382 talks about payments made in a state of insolvency are also rescissible for obligations to whose fulfillment the debtor could not be compelled at the time they were effected. It is necessary that the debtor’s insolvency be judicially declared.
Art. 1383 refers to the nature of action for rescission where rescission is not a principal remedy but only a subsidiary, meaning that it can only be availed only when proved that there is no legal means aside from rescinding the contract to obtain redress for the damages caused, even if the contract is covered by Article 1381.
Art. 1384 talks about the extent of rescission. Rescission shall only be to the extent of the creditor’s unsatisfied credit because the policy of the law is to preserve or respect the contract. The entire contract need not be set aside by rescission if the damage can be repaired by partial rescission.
Art. 1385 talks about rescission that creates obligation of mutual restitution. The purpose of rescission is to restore the parties to their original situation that’s why there is no obligation to restore if nothing has been received. When a court declares that there will be a rescission, the parties must return to each other the object of the contract together with its fruits and the price with legal interest. However, there are cases when rescission is not allowed. First, if the party who demands for it, cannot return what he is obliged to restore under the contract. And, if the property is legally in the possession of a third person who acted in good faith.
Art. 1386 refers to contracts approved by the courts, that if a contract entered in behalf od ward or absentee, rescission cannot take place because it is considered valid whether there is lesion or not.
Art. 1387 talks about when alienation presumed in fraud or creditors; alienation by gratuitous title, and by onerous title. Additionally, there are circumstances denominated as badges of fraud; the consideration of the conveyance is fictitious or inadequate, a transfer made by a debtor after suit has begun and while it is pending against him, a sale upon credit by an insolvent debtor, the transfer of all his property by a debtor, when he is insolvent or embarrassed financially, the transfer is made between father and son and the above circumstances are present, the failure of the vendee to take exclusive possession of all the property, and it was known to the vendee that the vendor had no properties.
Art. 1388 talks about liability of purchaser in bad faith where if the purchaser acted in bad faith, he must return the same if the sale is rescinded and must indemnify the former if it is impossible for him to return it.
Art. 1389 talks about period for filing action for rescission having a general rule that action to claim rescission must be commenced within four years from the date the contract has been made.
Thank you for this lesson, Sir.
Azagra, Mark Johndave A.
1 BSA-B PNC
Good Evening Atty. here are the summary of what i've learned on this discussion.
ARTICLE 1356
• Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised.
ARTICLE 1357
• If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract.
ARTICLE 1358
• Must appear in a public document:
(1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405;
(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains;
(3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person;
(4) The cession of actions or rights proceeding from an act appearing in a public document.
All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one.
ARTICLE 1380
• Rescissible Contracts.
• Rescission.
• Requisites of Rescission. (7)
• Types of Rescissible Contracts. (4)
ARTICLE 1381
• Requisites of Rescission of contracts undertaken in Fraud of Creditors. (3)
• Other instances where contracts are Rescissible. (3)
ARTICLE 1382
• Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible.
ARTICLE 1383
• The action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same.
ARTICLE 1384
• Rescission shall be only to the extent necessary to cover the damages caused.
ARTICLE 1385
• Effect of rescission.
• The object of the contract with its fruits and the price thereof with legal interest.
• When rescission not allowed.(2)
ARTICLE 1386
• Rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts.
ARTICLE 1387
• Alienations presumed in Fraud of Creditors. (2)
• Circumstances denominated as badges of Fraud. (6)
ARTICLE 1388
• Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them.
If there are two or more alienations, the first acquirer shall be liable first, and so on successively.
ARTICLE 1389
• The action to claim rescission must be commenced within four years.
For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former’s incapacity, or until the domicile of the latter is known.
Thank you Atty. and have a blessed Evening.
Pama, Kershey Anne L.
1BSA-A
Chapter 3: Form of Contracts (Article 1356-1358)
Contracts may be oral, or in writing, or partly oral and partly written. It may be express when the parties expressly set forth their intentions, or implied when their intentions may be inferred form their actions or conducts. A rescissible contract is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party. The court can therefore rescind, or set aside, the contract for equitable reasons. Valid contracts can be legally rescinded under certain circumstances. Types of contracts that are rescissible under Article 1381. Requisites of Rescission are contract must be validly agreed upon, there must be lesion or prejudice to one of the parties, must be based upon a case, there must be no other legal remedy because if there is then rescission will not take place, the one asking for rescission must be able to return what he is obliged, object must not be in possession of third person who did not act in bad faith, and filing the action for rescission must not have prescribed. There are types of rescissible contracts, one where entered by guardian in behalf of wards, two is agreed upon in representation of absentees, third is undertaken in fraud of creditors, and last is to things under litigation. There are also requisites for Fraud of creditors or known as Fraudulent Alienation of Property by the Debtor. One is there must be an existing debt, there must be fraud on the part of the debtor, and creditor cannot recover his credit. As a general rule of Article 1389 an action to claim rescission must be commence within four (4) years from the date the contract was entered into .
Melendrez, Ella Grace G.
1BSA-A
Below are the summary of my learnings:
CHAPTER 2 - FORM OF CONTRACTS
Article 1356. Form of a contract refers to the manner in which a contract is executed or manifested. As a general rule, contracts are binding and therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present.
Article 1357. The law may require a certain form for the convenience of the parties in order to make it effective, as against third persons.
Article 1358. The article refers to the things that must appear in a public document. Also, all other contracts where the amount involved exceeds P500 must appear in writing, even private one.
CHAPTER 6 - RESCISSIBLE CONTRACTS
Article 1380. Rescissible Contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. On the other hand, rescission is a remedy granted by law in order to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract.
Article 1381. There are four types of Rescissible Contracts. (1) Contracts entered into on behalf of wards (2) Contracts agreed upon in representation of absentees (3) Contracts undertaken in fraud of creditors (4) Contracts which refer to things under litigation.
Article 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled.
Article 1383. Rescission is only subsidiary meaning it can be availed only when proved that there is no other legal means aside from rescinding. In addition, if the damage is repaired, rescission cannot take place.
Article 1384. Rescission is only to the extent of the creditor's unsatisfied credit. Its effect is that the entire contract need not be set aside if damage can be repaired or covered by partial rescission because the law is to preserve or respect the contract, not to extinguish it.
Article 1385. Rescission is not allowed: (1) If the party who demands rescission cannot return what he is obliged to (2) If the property is legally in possession of a third person who acted in good faith.
Article 1386. In contracts entered into on behalf of ward or absentee, rescission cannot take place when the court approved its validity, even if there is lesion or not.
Article 1387. The alienation presumed in fraud of creditors are alienation by gratuitous title and by onerous title.
Article 1388. The purchase in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
Article 1389. The general rule is that the action to claim rescission must be commenced within four years from the date the contract was entered into.
Thank you, Atty. for the informative video lecture!
Mahilum, Alexis Joy
1BSA-A
Pamantasan ng Cabuyao
Good day, Attorney! Here are my takeaways from your video lecture.
Article 1356 discusses about the forms of contract or the manner in which a contract is executed. As a general rule, contracts are binding, therefore, it is not required to be reduced in any form. The contract that is required to be executed in any form for validity are donation of real property, donation of personal property the value of which exceeds P5,000.00, sale of land through an agent, stipulation to pay interest, and contract of partnership. These contracts require formality or must be in a public document or writing.
Article 1357 discusses about the requirement of law to a certain form for the convenience of the parties as against third persons wherein the special form is indispensable since they are allowed to file a complaint to enforce a contract and to observe its proper form.
Article 1358 talks about the contracts that must appear in a public document which means that the contract should be notarized. All other contracts, public and private, where amount involved exceeds P500.00 must appear in writing. The contracts that must be registered are sale or transfer of large cattle and chattle mortgage.
Article 1380 talks about rescissible contracts which is a valid contract, although defective, because it gives the aggrieved party the remedy of rescission. This article also states the requisites of rescission.
Article 1381 discusses about the types of rescissible contracts which are contracts entered into in behalf of wards or a person under guardianship, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, and contracts which refer to things under litigation.
According to Article 1382, payments are rescissible if made in a state of insolvency because the insolvent person is suspended of all payments. Insolvency of the debtor must be judicially declared.
According to Article 1383, rescission is only a subsidiary remedy because it can be availed only if there is no other legal means aside from rescinding.
According to Article 1384, rescission is only to the extent of creditor’s unsatisfied credit. The effect of rescission is a conservative application wherein if partial rescission can be resorted to, there is no need for complete rescission. The reason of rescission is to preserve the contract and not to extinguish it.
Article 1385 talks about the obligation of the parties upon complete rescission which is to return to each other the object of the contract with its fruits and the price with legal interest. This article also states the circumstances where rescission is not allowed.
Article 1386 talks about a rescissible contract which is the contracts entered into in behalf of ward or absentees. In this type of contract, rescission cannot take place even if there is lesion or not and its validity is approved because it is presumed by the law that the court acts in the interest of the wards or absentees.
Article 1387 discusses about alienations presumed in fraud of creditors which are alienation by gratuitous title and onerous title. This article also states the circumstances as badges of fraud.
According to Article 1388, the purchaser in bad faith must return what he has bought if the sale is rescinded, and if impossible to return, must indemnify it. On the other hand, if there are two or more person liable, the first person should be liable first.
Article 1389 talks about the period for filing an action for rescission of a contract and the persons entitled to bring action. As a general rule, the action to claim rescission must be commenced within four years from the date the contract was entered into except when the person is under guardianship where the beginning period is the termination of incapacity, and when the person is an absentee where the beginning period is when the domicile is known. Persons entitled to bring action are the injured party or the defrauded creditor, his heirs, assigns, or successors in interest, and the creditors of the above entitled to subrogation.
Castillo, Rikka Marie B.
1BSA-A
PNC
Chapter 3 - Forms of Contracts
Article 1356 - Contracts are binding whatever form they are entered into except when the law requires a contract be in some form to be valid, to be enforceable, or proved in a certain way, and the convenience of the parties or for the purpose of affecting the third person.
Article 1357 - Article that allows a certain contract be executed for the convenience of the parties or to make it affective as against the third person.
Article 1358 - This article contains what should appear in public document which is act and contracts, cession, reputation or renunciation of hereditary rights, power to administer property, and cession of actions.
Chapter 6 - Rescissible Contracts
Article 1380 - A contract that is validly agreed upon can be rescinded. Rescissible contracts are a valid contract but recission is granted by law.
Article 1381 - Types of Rescissible Contracts
Article 1382 - This states that when a debtor is in a state of insolvency but still initiates to settle debts, the contract may be rescinded.
Article 1383 - This article states that recission can only be an option when proved that there is no more legal remedy aside from rescission.
Article 1384 - This article states that rescission can only be up to the extent to satisfy the creditor’s unsatisfied credit.
Article 1385 - This article states that if a contract is rescinded, parties must return the object of the contract, fruits, and the price thereof with legal interest.
Article 1386 - When the contract is validated by the court, rescission of contract shall not take place.
Article 1388 - This article states that if the sale is rescinded, the purchaser that acts in bad faith must return the object and if it is impossible for him to return it, he must indemnify the former.
Article 1389 - This article contains the period of filing action for rescission which is 4 years. There are two exceptions if the person is under guardianship and absentees.
Thank You for the video, Atty!
Laarni Joy Cabanela
1BSA-A
Pamantasan ng Cabuyao
Good Day, Atty. Here is the summary of what I have learned in this video.
Art. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised.
Art. 1357. If the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract.
Art. 1358. The following must appear in a public document:
(1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405;
(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains;
(3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person;
(4) The cession of actions or rights proceeding from an act appearing in a public document.
All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No. 2 and 1405.
Art. 1359. When, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed.
If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the proper remedy is not reformation of the instrument but annulment of the contract.
Art. 1360. The principles of the general law on the reformation of instruments are hereby adopted insofar as they are not in conflict with the provisions of this Code.
Art. 1361. When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed.
Art. 1362. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument.
Art. 1363. When one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed.
Art. 1364. When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed.
Art. 1365. If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper.
Art. 1366. There shall be no reformation in the following cases:
(1) Simple donations inter vivos wherein no condition is imposed;
(2) Wills;
(3) When the real agreement is void.
Art. 1367. When one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation.
Art. 1368. Reformation may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns.
Art. 1369. The procedure for the reformation of instrument shall be governed by rules of court to be promulgated by the Supreme Court.
Art. 1370. If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.
If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former.
Art. 1371. In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered.
Art. 1372. However general the terms of a contract may be, they shall not be understood to comprehend things that are distinct and cases that are different from those upon which the parties intended to agree.
Art. 1373. If some stipulation of any contract should admit of several meanings, it shall be understood as bearing that import which is most adequate to render it effectual.
Art. 1374. The various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly.
Art. 1375. Words which may have different significations shall be understood in that which is most in keeping with the nature and object of the contract.
Art. 1376. The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established.
Art. 1377. The interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity.
Art. 1378. When it is absolutely impossible to settle doubts by the rules established in the preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the least transmission of rights and interests shall prevail. If the contract is onerous, the doubt shall be settled in favor of the greatest reciprocity of interests.
If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void.
Art. 1379. The principles of interpretation stated in Rule 123 of the Rules of Court shall likewise be observed in the construction of contracts.
Art. 1380. Contracts validly agreed upon may be rescinded in the cases established by law.
Art. 1381. The following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof;
(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number;
(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them;
(4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority;
(5) All other contracts specially declared by law to be subject to rescission.
Art. 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible.
Art. 1383. The action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same.
Art. 1384. Rescission shall be only to the extent necessary to cover the damages caused.
Art. 1385. Rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore.
Neither shall rescission take place when the things which are the object of the contract are legally in the possession of third persons who did not act in bad faith.
In this case, indemnity for damages may be demanded from the person causing the loss.
Art. 1386. Rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts.
Art. 1387. All contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation.
Alienations by onerous title are also presumed fraudulent when made by persons against whom some judgment has been issued. The decision or attachment need not refer to the property alienated, and need not have been obtained by the party seeking the rescission.
In addition to these presumptions, the design to defraud creditors may be proved in any other manner recognized by the law of evidence.
Art. 1388. Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them.
If there are two or more alienations, the first acquirer shall be liable first, and so on successively.
Art. 1389. The action to claim rescission must be commenced within four years.
For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former's incapacity, or until the domicile of the latter is known.
Thank you, Atty.
Ortega, Annaztacia
1 BSA - A
Good day atty, here are the summary of what I've learned in your lesson. In Article 1356, valid contracts can be legally rescinded under certain circumstances. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the right of the parties stated in the following article cannot be exercised. Contracts are binding upon the contracting parties in whatever form they may have been entered into as long as all the essential requisites for their validity are present. The form of a contract is essential:
When the law requires that a contract be in certain form for its validity; (refers to solemn or formal contracts) and when the law requires that a contract be in certain form for its enforceability. (refers to the agreements covered by the Statute of Frauds. Moreover in Article 1357, if the law requires a document or other special form, as in the acts and contracts enumerated in the following article, the contracting parties may compel each other to observe that form, once the contract has been perfected. This right may be exercised simultaneously with the action upon the contract. When form is required by law for its convenience only and the contract is in not that form, contracting parties may compel each other to observe that form, once the contract required by the law but if not not essential for validity .of the contract then this art. cannot be made. However, according to Article 1358, the following must appear in a public document:
(1) acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein are governed by Articles 1403, No. 2, and 1405;
(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; (4) The cession of actions or rights proceeding from an act appearing in a public document. All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No. 2 and 1405.
In addition, according to Article 1380, contracts validly agreed upon may be rescinded in the cases established by law. A rescissible contract is one which contains all the essential requisites of a contract which make it valid, but by reasons of injury or damage to either of the contracting parties or to third person, such as creditors, may be rescinded. The characteristics of a rescissible contract are it has all the elements of a valid contract; it has a defect consisting in an injury to one of the contracting parties or third person, generally in the form of economic damage or lesion, fraud, alienation of property subject of case in court without the consent of the litigants or of the court; it is valid and effective until rescinded; it can be attacked only directly, either by one of the contracting parties or by an affected third person, who is injured or defrauded by the contract; and it is susceptible of convalidation only by prescription. Ratification process does not apply. Moreover in Article 1381, the following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; (3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them; (4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority; (5) All other contracts specially declared by law to be subject to rescission. Hence, according to Article 1382, Rescission under Article 1191 is a result of what people usually call as breach of contract. In reciprocal contracts, parties have mutual obligations and the obligation by either party to do, not to do or to give something is actually the cause for the other party to agree to also do, not do or give something in return. So when one does not perform his obligations under his contract, the other party has remedies under the law. Under the said Article 1191, the injured party can choose between fulfillment and rescission, with payment of damages in either case. This means that the injured party can either compel the guilty party to perform his part of the contract and claim for damages as a result of the breach, or it can rescind the contract and also claim for damages and in article 1383, an action to rescind a rescissible is just subsidiary, whih means, it cannot be instituted except when the party suffering damages has no other legal means to obtain reparation for damages suffered. Therefore it is necessary for the plaintiff to have exhausted all other legal means to obtain reparation. Otherwise, action will not prosper. Also, in article 1384, Rescission shall be only to the extent necessary to cover the damages caused.
Moreover, in article 1385, this article provides for mutual restitution where there is delivery on both sides and both parties must return what they had received from each other. It is not applicable in cases where the creditor rescinds the contract executed by his debtor in favor of other persons, because the creditor will not have anything to restore in the first place since he did not receive anything from the debtor. Also, in article 1386, the following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number. Exception to Article 1386 are: Instances where there is strong, clear and convincing evidence to show that the contracts entered into by the guardians and representatives which have been approved by the court did not observe due process. Opposition timely made before the court. And the court has no jurisdiction over the case. In article 1387, all contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation. Also, in article 1388, The person will be liable to return the property to the particular creditor/s who had successfully instituted the complaint for rescission. Lastly, in article 1389, The action to claim rescission must be commenced within four years.
For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former’s incapacity, or until the domicile of the latter is known.
That's all. Thank you po.
Candido, Hannah Mae P
PNC-1BSA-A
Good Day Atty! Below is the summary on what I've learned on the video lecture
We're now on the Chapter 2 Form of Contracts
Under Article 1356 the form of contract is a manner in which a contract is executed or manifested. It discussed the general rule and enumerate its exception. This article also show the list of contract which required to be executed in a certain way for its validity. The Article 1357 states that law may also require a certain form for the convenience of the parties in order to make effective, as against third persons. Article 1358 enumerates the following what must appear in a public document. We should take note that all other contracts where amount involve exceeds Five Hundred (500) pesos must appear in writing, even private one. The contract that must be registered are (1) sale or transfer of large cattle; (2) chattel mortgage.
After Form of Contracts, we're now on defective contracts. The first form of Defective Contracts is in under Chapter 6 Rescissible Contracts.
The Rescissible Contracts under Art.1380 is that valid agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. The meaning of rescission is provided which means a remedy granted by law in order to secure reparation of damages; the requisites is also discussed here. The types of Rescissible Contracts are mentioned under Art 1381. The other instances where contracts are rescissible is specify in this article. The Art 1382 points out that payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled. Under Art 1383 rescission is only subsidiary where can be availed only when proved that there is no other legal remedy aside form rescission, even if the contract is considered rescissible under Art 1381. We should take down that if the damage is repaired, rescission cannot take place. Article 1384 shows what is the extent, effect, and reason of rescission. The effect of rescission and when rescission are not allowed is discussed under Art 1385. If the party who demands rescission cannot return what he is obliged to and if the property is legally in possession of a third person who acted in good faith is an example of rescission that are not allowed. The Art 1387 provides alienations presumed in fraud of creditors (1) alienations by gratuitous title; (2) alienations by onerous title. This article also enumerate the circumstances denominated as badges of fraud. Under Art. 1389, action to claim rescission must within four (4) years from the date the contracts entered into except for the persons under guardianship (as it is from the termination of incapacity) and for absentees (as it is from the time the domicile is known).
This ends the summarization. Thankyou and Godbless Atty!
Abion, Francine Joyce P.
1BSA-B
Pamantasan ng Cabuyao
Good day, Atty. Here is the summary of my learning from the video.
I've taken note that contracts are valid and enforceable. Some of them need to get executed in a certain way of their validity. Formalities are necessary, and some contracts must have public documentation, in written form, and must be in public instruments. The law also mandates that some contracts get conducted in specific ways to benefit the parties against a third party. Both actions to enforce the agreement and the claim to order the other party to observe formalities required by law are permissible (Arts. 1356-1358).
For chapter 6, I just learned that rescissible contracts are defective but valid contracts with the fairness of equity given to the aggrieved party the remedy of rescission (cancellation of contract). The rescission I previously stated is the restoration of things or the relief to secure reparation of damages. There are four types of rescissible contracts: entered into on behalf of wards or persons under guardianship, agreed upon in representation if absentees, undertaken in fraud of creditors (act of the debtor trying to alienate his properties or the fraudulent alienation of property of the debtor), and contracts which refer to things under litigation. The law provided other instances where contracts are rescissible like: if a person dies and his properties might be transferred to their heirs at least one-fourth of the share per co-owners, if the lessee or lessor does not provide their obligations in a contract of lease, and when the real estate did sell for less than or more than one-tenth of the agreed-upon amount in a deed of sale. Also, Article 1383 informed me that rescission is only subsidiary (next to priority) or may get used only when proven that there are no other legal options than rescinding. The applicability of a rescissible contract is a conservative application (if reparation has already been made before the rescission, rescissible contract will not take place). Lastly, in filing a rescission, it must be done within four years except when the person is under guardianship or is an absentee.
Thank you for this very informative video lecture, Sir. Have a nice day, Atty.
Momo, Margie Mae T.
1BSA-B
Pamantasan ng Cabuyao
Article 1356
Form of contract - manner a contract is executed or manifested
General Rule: Contracts are binding and enforceable whatever may be the form
Exception: When the law requires the contract to be in some form to be (1) valid, (2) enforceable
or proved in a certain way, (3) and for the convenience of the parties or for the purpose
of affecting third persons.
Article 1358
All other contracts where the amount exceeds 500 pesos must appear in writing, even private ones.
A contract that must be registered:
1. Sale or transfer of large cattle
2. Chattel mortgage
Article 1380
Rescissible Contracts
- validly agreed upon because all essential elements exist therefore legally effective but
remedy of rescission is granted in the interest of equity.
Rescission - remedy granted by law to secure reparation of damages
Requisites of rescission:
1. Contract must be validly agreed upon.
2. Lesion or pecuniary prejudice to one of the parties or to a third person.
3. Rescission must be based upon a case especially provided by law.
4. There must be no other legal remedy to obtain reparation for the damage.
5. The party asking for rescission must be able to return what he is obliged to restore by reason
of the contract.
6. Object of the contract must not legally be in the possession of third persons who did not
act in bad faith.
7. Period for filing must not have prescribed.
Article 1381
Types of rescissible contracts:
1. Entered into in behalf of wards
2. Agreed upon in representation of absentees
3. Undertaken in fraud of creditors
4. Refer to things under litigation
Requisites of Rescission of Contracts Undertaken in Fraud of Creditors:
1. Existing credit prior to rescission, though it is not yet due or demandable.
2. Fraud on part of the debtor (presumed or proved).
3. Creditor cannot recover credit, not being required that debtor is insolvent.
Other Instances where Contracts are Rescissible:
1. Partition - when any of the co-heirs received things valued at least one-fourth lesser than the share
he is entitled.
2. Lessor or lessee should not comply with their obligations.
3. Vendee may rescind when the real estate sold is less than or exceeds one-tenth of the agreed price.
Article 1382
Payments made in a state of insolvency -> the debtor could not be compelled.
When the debtor is insolvent, there must be a judicial declaration.
Article 1383
Rescission is only subsidiary
- availed only when proved that there are no other legal means aside from rescinding
Article 1384
Rescission (1) Extent - only to the extent of creditor's unsatisfied credit
(2) Effect - entire contract need not to be set aside if the damage can be repaired or covered
by partial rescission.
(3) Reason - the law is to preserve or respect the contract, not to extinguish it.
Article 1385
When the contract is rescinded, the object with its fruits and price with legal interest must be returned.
When rescission is not allowed:
1. Party who demands rescission cannot return what he is obliged to.
2. Property is legally in possession of a third person who acted in good faith.
Article 1387
Alienations Presumed in Fraud of Creditors:
1. Alienation by gratuitous title
2. Alienation by onerous title
Circumstances denominated as badges of fraud:
1. Fictitioud or inadequate consideration of the conveyance
2. Transfer made by a debtor after suit has begun and is pending against him.
3. Sale upon credit by an insolvent debtor.
4. Transfer of all property by a debtor when he is insolvent.
5. Transfer is made between father and son when present some or any of the above circumstances.
6. Failure of the vendee to take possession of all the property.
7. It was known to the vendee that the vendor had no property other than that sold.
Article 1388
Purchaser in bad faith must return the same, if impossible, he must indemnify it.
Article 1389
General Rule: action to claim rescission must be commenced within four years from the date the
the contract was entered into.
Exceptions: Person Beginning Period
1. Under guardianship Termination of incapacity
2. Absentees Domicile is known
Persons entitled to bring action:
1. Injured party/defrauded creditor
2. Heirs, assigns, successors in interest
3. Creditors of the above-entitled to subrogation.
Thank you, Atty!
Rivas, Krisha Eunice G.
1BSA-A
Pamantasan ng Cabuyao
Good day Attorney, here are the summary of what I learned from this video.
Chapter 3 Forms of Contracts
Article 1356- the form of a contract refers to the manner in which a contract is executed or manifested. The contract may be oral, or in writing, are partly oral and partly in writing. Informal four common our simple contract or that which may be entered into in whatever form provided all the essential requisites for their validity are present. Formal or solemn contracts for that which is required by law for its efficacy to be in a certain specified form. The general rule is contracts are binding and therefore enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into.
Article 1357- in certain cases, a certain form example public instrument is required for the convenience of the parties in order that the contract may be registered in the proper registry.
Article 1358- the public document is only required on the convenience and greater protection of the parties and to make the contract binding as against third persons. It insures its efficacy so that after the existence of the act or contract has been admitted, party bound may be ordered by the court in which the action or suit is filed to execute the document.
Chapter 6 Rescissible Contracts
Article 1380- rescissible contracts are those validly agreed upon because all the essential elements exist and, therefore legally effective, but in the case is established by law, the remedy of recession is granted in the interest of equity. Rescission is a remedy granted by law to the contracting parties and sometimes even to third person in order to secure reparation of damages caused them by a valid contract.
Article 1381- cases of rescissible contracts; contracts entered into in behalf of wards, contracts agreed upon in representation of absentees, contracts undertaken in fraud of creditors, contracts which refer to things under litigation and other instances.
Article 1382- under this article, the payments must have been made or obligation to whose fulfillment a debtor could not be compelled at the time they were affected.
Article 1383- the session is not a principal remedy but it is only subsidiary.
Article 1384- the recession shall only be to the extent of the creditor's and unsatisfied credit.
Article 1385- the object of the contract with its fruits and the price thereof with legal interest, return to each other.
Article 1386- if a contract entered into in behalf of absentee has been approved by the court, recession cannot take place because it is valid whether there is legit or not.
Article 1387- alienation by gratuitous title, alienation by onerous title, it is alienation presumed in fraud of creditors.
Article 1388- the purchaser in bad faith, who acquired object of the contract alienated in fraud of creditors , must return the same if the sale is rescinded.
Article 1389 - as a general rule , the action to claim rescission must be commenced within four years from the date the contract was entered into. The exemptions are; for persons under guardianship , the period shall begin from the termination of incapacity and for absent is , from the time the domicile is known. The Actions for the session may be brought by: the injured party or the defrauded creditor; his heirs comma assigns , or successors in interest or the creditors of the above entitled to subrogation.
Thank you Attorney.
Evangelista, Shane G.
1BSA-A
Here are some of my takeaways in this video lecture; The video lecture is about the form of contracts and rescissible contract.
Form of contract is the manner in which a contract is executed or manifested. Contracts shall be obligatory in whatever form maybe, provided that all the essential requisites for the validity are present.
Rescissible contracts are those validly agreed upon because all the essential elements exist and therefore legally effective, but in the cases established by law, the remedy of rescission is granted in the interest of equity. Contracts may be rescinded in the cases established by law.
Geminiano, Hanna Rian T.
1BSA-A
Good day Atty.! Here is the summary of my learnings for this video lecture:
Art. 1356 is about form of a contract which refers to the matter in which a contract is executed or manifested. Its general rule is that contracts are binding and enforceable reciprocally by the contracting parties provided all the three essential requisites for their validity are present, except when the law requires them to be in some form to be valid or enforceable.
Art. 1357 states that the law may require a certain form for the convenience of the parties in order to make effective, as against third persons. It is not indispensable since they are allowed by law to compel the other to observe the proper form and this right may be exercise simultaneously with the action to enfore the contract.
Art. 1358 presents what must appear in a public document. They are: acts and contracts which have their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No.2 and 1405; The session, reputation or renunciation of rights or those of conjugal partnership of gains; The power to administer property or any other power which has for its object an act appearing or which should appear in public document, or should prejudice a third person; and the cession of action of rights proceeding from an act appearing in a public document
Art. 1380 stated that rescissible contracts are those validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. It also discussed the requisites of rescission.
Art. 1381 enumerated the types of rescissible contracts. They are: Contracts entered into in behalf of wards, agreed upon in representation of absentees, undertaken in fraud of creditors, and which refer to things under litigation. It also talks about the requisites of rescission of contracts undertaken in fraud of creditors.
Art. 1382 refers to the payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compeled. When a debtor is insolvent, it must be judicially declared.
Art. 1383 stated that rescission is only subsidiary. It means that it can be availed only when proved that there is no other legal means aside from rescinding, dven such contract is covered by Art. 1381
Art. 1384 discussed about the rescission is only to the extent of creditor's unsatisfied credit. Its effect is the entire contract need not be set aside if damage can be repaired or covered by partial rescission. The reason is that the law is to preserve or respect the contract, not to extinguish it.
Art. 1385 is about the effect of rescission.
There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
Art. 1386 stated that in contracts entered into in behalf of ward or absentee, rescission can take place when the court approved its validity, even if there is lesion or not. It is because the law presumes that court acts in the interest of the ward or absentee.
Art. 1387 presented the alienations presumed in fraud of creditors. It also presented circumstances thay could be denominated as badges of fraud.
Art. 1388 stated that the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former. When there are two or more, first shall be liable first, and so on, successively.
Art. 1389 - this article's general rule is that the action to claim rescission must be commenced within four years from the date the contract was entered into with exceptions when under guardianship and when there is absentees.
Galang, Leigh Nicole S.
Pamantasan ng Cabuyao
1 BSA - A
A rescissible contract is one that was entered into legally by the contracting parties but has resulted in economic damage to one of the parties or an outside party. The court can therefore rescind, or set aside, the contract for equitable reasons.
Valid contracts can be legally rescinded under certain circumstances. Types of contracts that are rescissible under Article 1381 include:
Any contracts entered into by guardians when their wards suffer lesion by more than one-fourth of the items that are the object thereof.
A contract agreed to in representation of an absentee, if the absentee suffered the lesion mentioned above.
Any contracts relating to fraud of creditors when the creditors cannot collect what is owed to him or her in any other manner.
Anything in litigation if it was entered into by the defendant without the knowledge or approval of the litigants themselves or a competent judicial authority.
Any other type of contract the law declares subject to rescission.
Under Article 1382, if one party is unable to pay debts owed, the injured party can rescind the contract. Rescission is only necessary to the extent that it is required to cover damages. The offending party must return the items that were the subject of the contract, along with interest. Therefore, rescission can only occur if the person can return what he or she is required to return.
If those things that are the subject of the contract are in the legal possession of a third party who wasn't acting in bad faith, rescission won't take place. In this situation, the injured party can demand reimbursement of damages from the person or persons who caused the loss.
To rescind a contract for fraud of creditors:
Credit must exist prior to the contract's creation.
There must be an element of fraud, or at least the intent to commit fraud, to the creditor seeking rescission.
Creditors cannot legally collect their credit.
The object in dispute cannot be in the hands of a third party who hasn't acted in bad faith.
Defective contracts can be classified in several ways:
Voidable and Annullable Contracts: These can be defective if one party was incapable of giving consent or if consent was granted by mistake, threat, violence, fraud, or undue influence.
Unenforceable contracts: These are contracts that can't be enforced for a variety of reasons.
Void or Inexistent Contracts: These have no legal effect because they don't legally exist.
Other defective contracts include those that are partially ineffective and partially valid. They don't fall under any of the above classifications, are only ineffective with respect to certain persons, but can be effective to other parties. These are known as Relatively Ineffective Contracts.
Hello, Atty. Narciso Reyes Jr.! Here are my takeaways for this discussion about Forms of Contract and Rescissible Contract.
First, from the Chapter 2 Form of Contracts - Article 1356, I have learned that contracts are not required to be reduced in a certain form as a general rule but it has exceptions required by law. Another, some forms of contract needs to be in a public instrument or in writing. If it is in a public instrument, the agreement must be reduced in writing and is duly authorized by a notary public. Also, that public document must have the following information stated in article 1358.
Now, let's proceed to the things that I have gained from Chapter 6 Rescissible Contracts. In this part of the lecture, I have understood that rescissible contract is a form of defective contract in which it is validly agreed upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. When we say rescission, it is a remedy given by law to secure reparation of damages, by means of restoration of things to their same condition prior to the celebration of said contract but, it has requisites that need to be considered. Second, I was also familiarized with the types of rescissible contracts and to its requisites when undertaken in fraud of creditors. In addition, I was acknowledged to other instances where contracts are rescissible. Third, I was able to connect the things that I have learned from Financial Rehabilitation and Insolvency Act wherein an insolvency debtor could not be compelled but it must be judicially declared which is also stated in the article 1382 of this lecture. Fourth, I have learned that rescission is just secondary and it can be availed only when proved. Another, the reason why rescission is important to the law, it is because they are aiming to preserve the contract and not to extinguish it. Also, rescission is not always available to be used as remedy because it has restrictions that we need to observe. And last, as to the general rule: the action to claim rescission must be commenced within four years from the date the contract was entered into.
So sir, this ends the summarizarion of my learning. Thank you for your time. Stay safe and may God bless you po!🙏🏻❤
Jerwin Pagela | 1BSA-A (PNC)
Here are my key takeaways and the notes I have jotted down while watching this video lecture about Contracts.
Chapter 2: Form of Contracts
Article 1336 - In this article the form of contracts is discussed the same as the rules regarding it. It is said in the general rule that whatever the form of contract a party has entered into, as long as all the three essential requisites for the validity are present, the contract is binding. Also, the law has the power to state the validity or invalidity of a contract.
Article 1357 - Sometimes, for the convenience of both of the parties the law may require a certain form.
Article 1358 - In a public document, there are some of the things that must appear in it. These things are a requirement to be stated in a public document.There are also some contracts that's must be registered which are sale or transfer of large chattle and a chattel mortgage.
Chapter 6: Rescissible Contracts
Article 1380 - This article explains the definition of rescissible contracts. These contracts are contracts that are although defective are still considered valid. Requisites of rescission are also stated in this article.
Article 1381 - There are four types of rescissible contracts.First are contracts entered into in behalf of wards.Second, contracts agreed upon in representation if absentees. Third are contracts undertaken in fraud of directors. And lastly, contracts which refer to things under litigation.
Article 1382 - the debtor could not be compelled if the payments are made in a state of insolvency for obligations.
Article 1383 - Rescission can be availed only when prove that there is no other legal remedy than rescission. Even though it is stated that the contract is rescissible, it doesn't really mean that rescission of contracts is the one to be used.
Article 1384 - The extent effect and reason for rescission are stated in this article.
Article 1385 - The object of the contract with its puts and the price with legal interest should be rendered by the parties when the court declares a contract is rescinded. Instances where rescission is not allowed are also present in this article.
Article 1386 - even though there is lession or not, contracts entered into in behalf of war the absentees,a rescission cannot take place when the court approved its validity.
Article 1387 - Alienation by gratuitous title or by onerous title are alienations that are presumed in fraud of creditors.
Article 1388 - A purchaser in bad faith can get indemnified if he wasn't able the return the same if the sale is rescinded due to any cause.When there are two or more, the first should be liable first and so on, successively.
Article 1389 - An action to claim rescission must be commenced within 4 years from the date contract was entered into.
Person entitled to bring action:
1. The injured party or the defrauded creditor.
2. His heirs, assigns, or successors in interest.
3.The creditors of the above entitled to subrogation.
FRIAS, RAYAH
1BSA-A
Pamantasan ng Cabuyao
CHAPTER 3 - FORM OF CONTRACTS
ART. 1356.
Form of Contract - the manner in which a contract is executed or manifested.
Contracts are binding and, therefore, enforceable reciprocally by the contracting parties, whatever may be the form in which the contract has been entered into, provided all the three essential requisites for their validity are present.
Contracts are not required to be reduced in a certain form. It is required to be executed in a certain form to be valid.
Public Instrument - agreement must be reduced to writing and it must be duly notarized by a notary public.
Formalities requires by law:
Contracts required to be executed in a public instrument - Donation of real property; Contract of partnership
Other contracts require merely that the agreement must be reduced to writing: Donation of personal property the value of which exceeds P5, 000.00; Sale of land through an agent; Stipulation to pay interest
ART. 1357.
A contract has not been reduced in writing then a party may compel the other party to observe the proper formalities required by law.
Remedy if a party would want to implement/ execute the contract but the contract has not been reduced into the formalities required by law - both action to enforce the contract and the action to compel or to order the other party to observe for the proper formalities required by law is allowed.
observe for the proper formalities required by law is allowed.
ART. 1358.
The following must appear in a public document:
Acts and contracts which have for their object, the creation, transmission, notification or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No. 2, and 1405.
The session, reputation or renunciation of rights or of those of conjugal partnership of gains.
The power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should prejudice a third person.
The cession of actions of rights proceeding from an act appears in a public document.
All other contracts where amount involved exceeds P500.00 must appear in writing, even private one.
CHAPTER 6 - RESCISSIBLE CONTRACTS
ART. 1380.
Rescissible Contracts - Although defective is actually valid. Although it is a valid contract, the law gives the aggrieved party the remedy of recession (cancellation of the contract) in the interest of equity. Contract wherein there is an economic damage to one of the parties or to a third person.
Requisites of Rescission
The contract must be validly agreed upon.
There must be lesion or pecuniary prejudice to one of the parties or to a third person.
The rescission must be based upon a case especially provided by law.
There must be no other legal remedy to obtain reparation for the damage.
The party asking for rescission must be able to return what he is obliged to restore by reason of the contract.
The object of the contract must not legally be in the possession of their persons who did not act in bad faith.
The period for filing the action for rescission must not have prescribed,
ART. 1381.
4 Types of Rescissible Contracts: in behalf of wards; in representation of absentees; undertaken in fraud of creditors; and things under litigation
Requisites of Rescission of Contracts Undertaken in Fraud of Creditors:
there must be a debt or an obligation prior to rescission, it does not matter whether the obligation is due or demandable
There must be fraud/deceit on part of debtor (maybe presumed or proved)
Creditor cannot recover his credit, not being required that debtor is insolvent
Other Instances where Contracts are Rescissible: Partition; If the lessor or lessee should not comply with their obligations; The vendee may rescind when the real estate sold is less than or exceeds 1/10 of the agreed price
ART. 1382.
When a person is in the state of insolvency and despite insolvency, the debtor would still settle his obligations. That payment made by an insolvent debtor is rescissible. In relation to the financial rehabilitation and insolvency act, if a person files a petition for insolvency to the regional trial court and the regional trial court issues a commencement order. Once a commencement order is issued by the insolvency court or the court handing the insolvency proceedings - suspension of all payments - the debtor may no longer touch his properties in order to settle the debts because the debts will be paid in accordance with the rehabilitation plan as approved by the court. Any and all payments made by an insolvent debtor for obligations to whose fulfilment the debtor could not be compelled, then that payment becomes rescissible.
ART. 1383
There are other remedies that an aggrieved party can avail off then rescission would not be an available remedy - because rescission is only subsidiary - only available when there is no other legal means to aid the aggrieved party.
If damage is repaired, rescission cannot take place. (When a party suffered a lesion or economic damage of ¼ and that damage has been repaired then rescission cannot take place - no longer an available remedy.
ART. 1385.
Effect of Rescission
There is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest. (If there is total rescission)
ART. 1387.
Circumstances denominated as badges of fraud (hallmarks of fraud):
The consideration of conveyance is fictitious or inadequate. (ex. a house and lot has been transferred or sold for half of its price)
A transfer made by a debtor after suit has begun and is pending against him. (ex. if a person has been sued in court or a case has been filed against him and subsequently after the filing of the complaint that person begins to alienate/transfer his property to the another person while the case is pending then that circumstance then the creditor can rescind the contract)
A sale upon credit by an insolvent debtor.
The transfer of all his property by a debtor when he is insolvent or greatly embarrassed financially.
The transfer is made between father and son, when there are present some or any of the above circumstances.
The failure of the vendee to take exclusive possession of all the property.
It was known to the vendee that the vendor had no property other than that sold.
ART. 1388.
The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
ART. 1389.
The action to claim rescission must be commenced within 4 years from the date contract was entered into.
Exceptions:
Under guardianship - 4 years will commence upon the termination of incapacity
Absentees - Domicile is known
AROMIN, MARIA CONCEPCION
1BSA-A
Pamantasan ng Cabuyao
Article 1356, it gives the rules regarding form of Contracts. In fact, as a general rule, contracts are not required to be reduced in any specific form except (1) when the law requires a Contract be in some form to be valid(2)" "to be enforceable or proven in a certain way(3) " " for the convenience of the (other) parties. Article 1357- it is said that there are times that the law will require a certain form for the ease of the parties to make it more effective, as against third person. Article 1358 clearly stated that the following must appear in a public document: (1) Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein a governed by Articles 1403, No. 2, and 1405; (2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership of gains; (3) The power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person. Article 1360 refers to the principles of the general law on the reformation of instruments are hereby adopted insofar as they are not conflict with the provisions of this Code. Article 1361 stated that when a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed. Article 1362 expressed that if one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument. Article 1363, on this article, when one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed. Article 1364 stated that when through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed. In Article 1365, if two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper. Article 1366, there shall be no reformation on simple donations inter vivos wherein no condition is imposed, wills and when the real agreement is void. Article 1388 Purchaser in bad faith must return the same, if impossible, he must indemnify it.
Article 1389 General Rule: action to claim rescission must be commenced within four years from the date the the contract was entered into. Article 1367 The party who brings an action to enforce contract cannot subsequently ask for its reformation. Article 1368 These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled. Article 1370 If the word appear to be contrary to the evident of the parties the latter shall prevail over the former. Article 1371 In order to judge the intention of the contracting parties their contemporaneous and subsequent acts shall be principally considered. Article 1372 However general the terms of a contracts may be they shall not be understood to comprehend things that are distinct and cases that are different from those upon which parties intended to agree. Article 1373 When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation. Article 1374 A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instruments and not from particular words, phrases, or clauses. Article 1375 Words which may have different signification shall be understood in that which is most in keeping with the nature and objects of the contracts Article 1376 The usage or custom of the place shall be borne in the mind interpretation of the ambiguities of the contracts , and shall fill the omission of stipulation which are ordinarily established Article 1377 Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity Article 1378 If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules. Article 1379 The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts.
Ellorda, Rishlene Jane S.
1 BSA-B
PNC
Below are the knowledge I gained in this video:
In Article 1356, it defined form of a contract and it refers to the manner in which a contract ia executed or manifested.
Article 1357, the law may require a certain form for the convenience of the parties in order to make effective, as against third persons.
The special form is not indispensable since they are allowed by law to compel the other to observe the proper form and this may be exercise with the action to enforce the contract.
In Article 1358, the following must appear in a public document;
1. Acts and contract which have for their object, the creation, transmission, notification, or extinguishment of real rights over immovable property; sales of real property of an interest therein is governed by Arts. 1403, No 2, and 1405.
2. The session, reputation or renunciation of here with rights or those of conjugal partnership of gains.
3. The power to administer property, or any other power which has for its object an act appearing or which should appear in public document, or should appear in public document, or should prejudice a third person.
4. The cession of actions of rights proceeding from an act appear in public document.
Chapter 6: Recissible Contracts
Article 1380, Recissible contracts are those validly agreed upon because all essential elements exist therefore legally effectibe but remedy of recission is granted in the interest of equity.
Recissiom is a remedy granted by law in order to secure reparation of damages, by means of restoration of things for their same condition prior to the celebration of said contract.
Article 1380, types of recissible contracts;
1. Contracts entered into in behalf of wards
2. Contracts agreed upon in representation if absentees
3. Contracts undertaken in fraud of creditors
4. Contracts which refer to things under litigation.
Other instances where contracts are recissible;
1. Partition- when any of the co-heirs received things valued at least one-fourth than the shared he is entitled.
2. If the lessor or lessee should not comply with their obligations.
3. Vendee may rescind when the real estate sold is less than ir exceeds one-tenth of the agreed price.
Article 1382, Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled.
Article, 1383, Recission is only subsidiary, can be availed only when proved that there is no other legal means aside from rescinding, even such contract is covered by Art. 1381.
Article 1385, Effect of recission, there is no obligation to restore if nothing has been received. When the court declares a contract rescinded, the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
Article 1386, in contracts entered into in behalf of ward or absentee, recission cannot take place when the court approved its validity, even there is lesion or not.
Article 1387, Alienations presumed in frauf of creditors;
1. Alienation by gratuitous title
2. Alienation by onerous title
Article 1388, the purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it, due to any cause, he must indemnify the former.
Article 1389, General rule, the action to claim recissiom mustbbe commenced within four years from the date the contract was entered into.
Persons entitled to bring action:
1. The injured party or defrauded creditor
2. His heirs, assigns, or successors in interest
3. The creditors of the above entitled to subrogation
Thank you, Attorney!
Lagera, Rinalyn A
1BSA A PNC
Good day atty
THESE ARE MY TAKEAWAYS FROM YOUR VIDEO.
Article 1356 form of a contract refers to the manner in which a contract is executed or manifested.
Rules regarding form of contract: contracts r binding and therefore enforceable reciprocally by the contracting parties whatever maybe the form in which the contract has been entered into.
Article 1357: the law May require a certain form for the convenience of the parties in order to make effective as against third person's.
Article 1358:
All contracts where amount involved exceed five hundred pesos must appear in writing even private one.
Article 1380 it's here that rescissible contracts are those validly agreed-upon because all essential elements exist therefore legally effective but remedy of rescission is granted in the interest of equity. Moreover it discuss here there meaning of rescission. It is a remedy granted by law in order to secure the reparation of damages.
Article 1381;
There are types of rescissible contracts.
1. Contracts entered into in behalf of wards.
2. Contracts agreed upon in representation if absentees.
3. Contracts undertaken in fraud of creditors.
4. Contracts which refer to things under litigation.
Article 1382;
Payments made in a state of insolvency for obligation to whose fulfillment the debtor could not be compelled.
Article 1383 rescission is subsidiary.
Article 1385 the effect of rescission there is no obligation to restore if nothing has been received when the court declares a contract rescinded. A contract rescinded the parties must return to each other the object of the contract with its fruits and the price thereof with legal interest.
article 1386: in contracts entered into behalf of ward or absentee precision cannot take place when the court approved its validity even there is lesion or not.
Article 1388 when there are two or more first shall be liable and so on successively.
Article 1389 the general rule here is the action to claim rescission must be commended within four years from the date the contract was entered into.
Thank you sir! 😊
Galuz, Lotus Anne A.
1BSA - A
Article 1356 Form of contract - manner a contract is executed or manifestedArticle 1357 The law will require a certain form for the ease of the parties to make it more effective, as against third person.
Article 1358. This article covers the things that should appear in a public document.
Article 1359 Reformation is the remedy allowed by law by means of which a written instrument is amended or rectified
Article 1360 The principle of the general law on the reformation of instruments are hereby adopted.
Article 1361 Mutual mistake is mistake of fact that is common to both parties of the instrument which causes the failure of the instrument to express their true intentions.
Article 1362 The right to ask for reformation is granted only to the party who was mistaken in good faith.
Article 1363 Remedy of reformation may be availed of the party who acted in good faith.
Article 1364 Neither party is responsible for the mistake. Hence, either party may ask for reformation.
Article 1365 The reformation of the instrument is proper: otherwise, the true intention of the parties would be frustrated.
Article 1366 There shall be no reformation on the following cases: Simple donations inter vivos wherein no condition is imposed, wills, and when the real agreement is void.
Article 1367 The party who brings an action to enforce contract cannot subsequently ask for its reformation.
Article 1368 These are the persons who can bring an action to reform an instrument: either of the parties, in all other cases, the injured party and the heirs or successors in interest, in lieu of the party entitled.
Article 1370 If the word appear to be contrary to the evident of the parties the latter shall prevail over the former.
Article 1371 In order to judge the intention of the contracting parties their contemporaneous and subsequent acts shall be principally considered.
Article 1372 However general the terms of a contracts may be they shall not be understood to comprehend things that are distinct and cases that are different from those upon which parties intended to agree.
Article 1373 When an agreement is susceptible of several meanings, one of which would render it effectual, it should be given that interpretation.
Article 1374 A contract must be interpreted as a whole and the intention of the parties is to be gathered from the entire instruments and not from particular words, phrases, or clauses.
Article 1375 Words which may have different signification shall be understood in that which is most in keeping with the nature and objects of the contracts
Article 1376 The usage or custom of the place shall be borne in the mind interpretation of the ambiguities of the contracts , and shall fill the omission of stipulation which are ordinarily established
Article 1377 Interpretation of obscure words or stipulations in a contract shall not favor the party who cause obscurity
Article 1378 If certain doubts still exist, such doubts shall be resolved in accordance with the supplementary rules.
Article 1379 The principles of interpretation stated in Rule 123 of the rules of court shall likewise be observed in the construction of contracts.
Article 1380, Contracts validly agreed upon may be rescinded in the cases established by law.
Article 1381 refers to contracts entered into behalf of wards- a ward is a person under guardianship by reason of some incapacity.
1382, if one party is unable to pay debts owed, the injured party can rescind the contract.
Article 1383, the action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same.
Article 1384 defined those situations where one person is liable for injuries caused by another
Article 1385 stated that the rescission creates the obligation to return the things which were the object of the contract
Article 1386 refers to rescission referred to in Nos. 1 and 2 of Article 1381 shall not take place with respect to contracts approved by the courts.
Article 1387 Alienations presumed in fraud of creditors
1. Alienation by gratuitous title
2. Alienation by onerous title
Article 1388 The purchaser in bad faith must return the same if the sale is rescinded and should it be impossible for him to return it due to any cost, he must indemnify the former
Article 13 89 The period in filing an action for position of contracts
Thank you Atty!