Oblicon Finals (Article 1327-1457

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Art. 1327.

The following cannot give consent to a contract:
(1) Unemancipated minors;
(2) Insane or demented persons, and deaf-mutes who do not know how to write.

Effect of Incapacity: Art. 1318 requires consent of contracting parties as an essential element for
the validity of the contract. The present article indicates who cannot give consent to a contract.
Legal consequence: contract entered into by one of these persons would be wanting in consent,
hence, inexistent or void.
Legally, if both parties are incapable of giving consent, the contract is unenforceable. If only one
is capable, it is annullable.
By way of exception: if necessaries are sold and delivered to a minor or other person
without capacity to act, he must pay a reasonable price therefor.
(necessaries: include everything indispensable for sustenance, dwelling, clothing,
& medical attendance.)
Unemancipated minors:

cannot enter into valid contracts; contracts entered into by them is
not binding upon them.
Unless:
1. Upon reaching majority they ratify the same
2. Contract has been entered into through a guardian (check Paras’
annotations.)

Estoppel.
The courts have laid down the rule that the sale of real estate, effected by minors
who have already passed the age of puberty and adolescence and are near the adult age, whent hey
pretend to have already reached their majority, while in fact they have not, is VALID, and they
cannot be permitted afterwards to excuse themselves from compliance with obligations assumed
by them or seek their annulment.
However, in the case of Young v. Tecson, “the liability resulting from
misrepresentation has its juridical source in the capacity of the person making the representation
to bind himself. If the person making the representation cannot bind himself by a contract, he
cannot also be bound by any misrepresentation he may have made in connection therewith. A
person entering into a contract must see to it that the other party has sufficient capacity to bind
himself.”
Justice Padilla, dissenting: “It would be illogical to uphold the validity of a contract on
the ground of estoppel, because if the contract executed by a minor is null and void for lack of
consent and produces no legal effect, how could such a minor be bound by misrepresentation
about his age? If he could not be bound by a direct act, such as the execution of a deed of sale,
how could he be bound by an indirect act, such as misrepresentation as to his age? The rule laid
down in Young v, Tecson in my opinion, is the correct one.”

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provided it is proven that at the time of entering into said contract. and is understood to be without prejudice to special disqualifications established in the laws. 7. Contracts entered into during a lucid interval are VALID.Oblicon Finals (Article 1327-1457) Insane persons. he was not insane. Art. It is the result of the use of alcohol or drugs upon the condition of the mind which determines whether the user has capacity to contract at a given moment. 6. his capacity will be presumed. Liquor and Drugs. 5. 8. Deaf-mutes. take care of themselves (because they become an easy prey for deceit) Special Disqualification:  Incapacity of a person declared as insolvent or bankrupt  Incapacity of the husband and the wife to sell property to each other Incapacity vs. Lucid intervals. Capable of entering into contract if shown that they have sufficient mental capacity. Art. Civil Interdiction Hospitalized lepers Prodigals Deaf and Dumb (unable to read and write) Unsound mind Age (minority) Disease Weak mind Other similar causes. If no sufficient proof to this effect is presented. Other causes of Incapacity 1. 1329. cannot without outside aid. contract executed is valid. 2. 9. A person under guardianship for insanity may still enter into a valid contract and even convey property. 4. 3. Contracts agreed to in a state of drunkenness or during a hypnotic spell are VOIDABLE. During lucid intervals. The presumption of sanity is generally favored. both. The burden of proving such incapacity at the time of the execution rests upon he who alleges it. Disqualification 2 . Hypnotism and Somnambulism. A person may take liquor and still retain his mental faculties. The utter want of understanding is a common element of The incapacity declared in article 1327 is subject to the modifications determined by law. 1328.

Thus. violence. Art. a person who has purchased a machine in his own name. A belief in the existence of some circumstance. makes it void. which in reality do not exist. A contract where consent is given through mistake. Concept of Error: Ignorance v. or to those conditions which have principally moved one or both parties to enter into the contract. A simple mistake of account shall give rise to its correction. fact or event. cannot elude payment of the price and claim that the vendor should collect it from a third person with whom such vendor had never contracted. Vitiated consent does not make a contract unenforceable but merely voidable. 1331.Oblicon Finals (Article 1327-1457) Incapacity is a restriction upon the exercise of a right. it should refer to the substance of the thing which is the object of the contract. Proof necessary: Must be established by full. Disqualification is a restriction upon the very right itself. or with an exact notion on the matter Should be free. undue influence. Mistake as to the identity or qualifications of one of the parties will vitiate consent only when such identity or qualifications have been the principal cause of the contract. 1330. “Defects of the will” or “Vices of consent” Requisites of Consent: IFS Intelligent. Should be spontaneous. Art. Error Ignorance means the complete absence of any notion about a particular matter. In order that mistake may invalidate consent. Error means a wrong or false notion about such matter. or fraud is voidable. 3 . by alleging that he made a mistake in contracting for himself and not in the name of such third person who is his client. renders the contract merely voidable. clear and convincing evidence Not merely by a preponderance thereof. intimidation.

Oblicon Finals (Article 1327-1457) Mistake of Fact or Law This article refers to error of fact. Error of law is not a ground for annulment. NCC) 4 . (Invoking Art. 3.