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REQUIRED:

Based on the initial facts given above, prepare a handwritten report based on the
following:
1. Explain the importance of the essential elements required for the formation of a
valid contract. Discuss what is the effect if any of the essential elements is
totally absent (1.1)
2. What is required for there to be considered to have a meeting of minds between
the parties to a contract?
3. The student should be able to explain (1) what constitute a valid consent (2)
what constitute a valid acceptance (3) when is an offer considered to have
been validly accepted and (4) what is the effect if there is no valid offer and
acceptance. The student should be able to cite the applicable provisions
under the Civil Code of the Philippines.
 What are the requisites for a valid object of a contract?
1. The student should be able to (a) explain the requirements to have a valid
object of a contract (b) explain the concept of objects which are “outside
the commerce of men” and give at least 5 examples and (c) explain what is
the effect if there is no valid object to a contract.
2. The student should be able to (i) describe (ii) give at least one example each and
(iii) discuss the impact of the following contracr:
3. Verbal contract
4. Written contract
5. Contracts which are required to be in a public document.
6. In the problem given above, was there already a perfected service contract
between ELCO and Mr. Ropertini Salvastre? Determine if all the requisites of
a valid contract are present or absent.
7. The student should be able to enumerate the (1) three (3) stages in dealing
with contracts (2) Explain whether the essential elements of a valid contract
is present and if not, determine what element or elements is/are absent. The
student should be able to explain the status of the service contract (whether
valid, void, voidable or unenforceable) and explain why?
8. In the scenario between Mr. Salvastre and ELCO, if Mr. Salvastre failed to make
his design, is there a breach of contract? If there is none, explain why. If there
is a breach, explain why?
 In the scenario between Mr. Shane Macky and ELCO, in case Mr. Macky made an
express warranty that his architectural design is compliant with the
Philippine standards, and that the building will not collapse due to poor
architectural design within two (2) years from date of completion, but after
one (1) year from its complete contruction the building collapsed: What is
the remedy of ELCO, if any, and what is the effect of Mr. Macky’s
Warranty.
 The student should be able to explain the concept of a warranty and
evaluate the effects of warranty on service contract between Mr.
Shane Macky and ELCO.

The student should be able to evaluate the effects of thee warranty by:
 Discussing the remedies of a party in case there is a breach of any
of the warranties contained in a contract;
 Citing at least two (2) provisions of the Civil Code of the
Philippines in relation to the remedies available to a party in case
of breach of contract;
 Citing at least TWO (2) Supreme Court Decision in support of the
answer; and
 Making a summary or a case digest of such decision.
 Analyze three (3) terms proposed by Mr. Rossini to be included in the Contract of
Lease, and determine their impact on validity of the lease contract.
1. The student should be able to analyze the rule on autonomy of contracts
and ground when a term, stipulation or condition may be considered as
valid or invalid.
2. The student should be able to apply the principle on invalidity of terms and
conditions and discuss whether or not the three terms proposed by Mr.
Rossini are invalid or violative of any elements or characteristics of a valid
contract.
3. A student should be able to cite the applicable legal provisions under the
Civil Code of the Philippines for the validity or invalidity of the proposed
terms and conditions.
4. In case Mr. Rossini and ELCO decided to have a verbal lease agreement with a
term of more than one (1) year, explain and answer the following:
5. What is the required form to have a valid contract, if any? Explain.
6. The student must be able to (a) explain the rules on formality of
contracts and explain what the effects are if the formality is not
observed (b) cite the applicable legal provisions on the Civil Code of
the Philippines and (c) cite at least two (2) decisions of the Supreme
Court which relates to the rules on formality of contracts.
7. What is the status of the contract between Mr. Rossini and ELCO if they
just have a verbal lease agreement with a term of more than 1 year?
8. The student should be able to (a) discuss the principle of statute of
frauds and the cite the particular provisions under the Civil Code of
the Philippines relating to the statute of frauds.
9. What if after two weeks from the verbal agreement, Mr. Rossini is now
denying that there is a contract between him and ELCO, what is the remedy
or remedies of ELCO? Can ELCO directly go to court and file an action to
enforce its right under such verbal agreement?
10. The student should be able to (a) what is an unenforceable contract
(b) discuss the remedies of a party under unenforceable contract (c)
cite particular provisions of the Civil Code of the Philippines
relating to the unenforceable contracts and give at least one (1)
example.
11. Formalize and make a lease agreement between ELCO and Mr. Rossini which
contains he following information, terms and conditions:
12. Parties: Elgamas Land Corporation (ELCO), represented by its president
(your choice of name, address, civil status)
Mr. Guiseppe Ynigo Rossini, of legal age, Filipino, 45 years old,
married to Josefa Rossini, and with residence address at Unit 54-A
Ultimate Max Tower, Bonifacio Global City, Taguig.
2. Agreed Rental Fee: Fifty Thousand Pesos (PHP 50,000) per month
3. Term of Lease: 10 years and renewable upon agreement of the parties,
4. Space to be leased: Unit 5-B ELCOR Industrial Business Park, Bonifacio
Global City, Taguig City, consisting of 100 square meters.
5. Provide any specific terms on the following:
1. Obligations of the ELCO as lessor
2. Obligations of Mr. Rossini as lessee
6. Limitation of Liability Clause
7. Exclusion Clause
8. Effectivity Clause
9. Warranty
10. The student must be able to (a) prepare the lease contract containing all
the formal and essential requisites of a valid contract lease (b) discuss if
all the requisites of a valid contract are present (consent, object,
consideration).
PREPARE EXAMPLES OF THE FOLLOWING WITH COMPLETE DETAILS
 5 Contracts attendant with the 5 vices of consent
 Deed of Sale and consolidation of two multinational companies
 Deed of Sale of Franchise of any business
 Deed of Usufruct between a school and a private individual
 Deed of Sale of house and lot
CITE 5 CONCEPTS LEARNED IN CLASS RELATING TO HONESTY AND HOW
DO YOU DEMONSTRATE THESE COPNCEPTS IN CLASS, FAMILY, PERSONAL
LIFE AND FUTURE CAREER.

Grading
Pass All questions and examples asked are comprehensibly answered
Merit Must firstly achieve all terms included with comprehensive answers to pass.

Notes
 Write in your own handwriting in a long bond paper. Single space
 Provide a table of Contents
 Duplication of work will merit a failing grade
 Your handwriting must jive with your handwriting in quizzes
 Do not submit if incomplete
 End nothing must be strictly observed. Material quoted from any source must be
acknowledged with appropriate end notes.
 Copying and pasting material from the Internet is considered in act
of PLAGIARISM if not acknowledged with appropriate end notes
 Evidence of academic research must be present to support your assignment ( a
minimum of 2 books for Business students, journals, and websites).
FINAL OUTPUT IN BLAW 101. DEADLINE ON MAY 19, 2018
You are a second year student of De La Salle University and your family owns a
corporation named Elgamas Land Corporation (“ELCO”) is engaged in the sale and
lease of commercial and residential lands and buildings in the Philippines.
Last January 2010, ELCO’s board of directors decided to build a commercial complex
and decided to secure the services of Mr. Robert Ruler, a licensed architect and is
well-known because of his extra-ordinary skills in combining the beauty of nature with
the modern architectural designs.
ELCO’s board of director, through its president, sent a letter to Mr. Ruler for him to
make a design for the commercial complex. ELCO offered an amount of Five Million
Pesos (Php 5,000,000) as service fee to Mr. Ruler. After three (3) days, ELCO’s
President received a letter from Mr. Ruler stating that Mr. Ruler will agree to make an
architectural design for Ten Million Pesos (Php 10,000,000).
Because of the expensive fees demanded by Mr. Ruler, ELCO decided to make an offer,
through a letter to Mr. Rupertini Salvastre, also a well-known architect with the same
skills and designs employed by Mr. Ruler. After three (3) days, ELCO’s President
received and was able to read the letter of Mr. Salvastre, accepting the offer of Php
5,000,000 for making the design for the commercial complex. On January 15, 2010,
ELCO, through its President and Mr. Salvastre formalized their agreement by
signing a Service Contract Agreement.
Thus Mr. Salvastre started making the design but on April 15, 2018 Mr. Salvastre met an
accident and died, leaving his son Joey and Wife Patty. Thus, Mr. Salvastre failed to
finish the design.
ELCO was constrained to secure the services of another well-known architect, Mr. Shane
Macky, who agreed to the Php 5,000,000 service fees. Mr. Macky finished his design and
DMCCII corporation started its construction based on the design of Mr. Macky.
On January 2013 the phase 1 of ELCO’s commercial complex called ELCOR Industrial
Business Park was already completed and ready to be occupied by prospective lessors.
Mr. Giuseppe Ynigo Rossini would like to lease a space in the commercial complex for
his Italian restaurant. Thus, on May 27, 2019, Mr. Rossini sent a letter to ELCOR
addressed to its President stating his interest to lease a space. On June 3, 2013, ELCO
through its President sent a letter to Mr. Rossini. Attached in the said letter is a
proposed Contract of Lease, whereby it is proposed that the lease agreement will be for
a minimum of five (5) years with a monthly rental of Fifty Thousand Pesos (Php
50,000.00) per month. One June 7, 2018, Mr. Rossini sent a reply-letter to ELCO’s
President and he wish to include the following provisions in the terms and conditions of
the Contract of Lease with Option to Purchase:
“1. The lessee (Mr. Rossini) will agree to lease the space for a minimum period of five
(5) years, if he decides not to go back to Italy next year.
1. The Lessee has the right to sell any goods in his restaurants, including foods and
wishes imported from Italy, even if these are not cleared by the Bureau of
Customs (“BOC”).
2. The Lessee has the right to terminate the contract, in case the Lessor failed to
comply with his obligations set forth in the agreement, such as failure to maintain
a proper waste disposal system.”
4.) Provisions on the following
5.) improvements
6.) Sub-leasing
7.) Minor and Major Repairs
8.) Acceleration clause
9.) Penal clause
10.) Make the obligation joint and Solidary
11.) One party will thumbprint
12.) Divisible and indivisible obligations to be included
13.) With mode of extinguishment
14.) instance of consignation

Your father is the president of ELCO. When he learned that you are currently enrolled in
the subject of Business Law, he asked you to help him understand the implications of the
above mentioned transactions and issues confronting ELCO.
REQUIRED:
Based on the initial facts given above, prepare a handwritten report based on the
following:
1. Explain the importance of the essential elements required for the formation of a
valid contract. Discuss what is the effect if any of the essential elements is totally
absent (1.1)
There are three essential elements of contract, namely, consent, object, and cause. It is
essential because without the presence of these elements will make the contract null and
void. There can be no contract at all.

2. What is required for there to be considered to have a meeting of minds between


the parties to a contract?
It is required to have a consent of the contracting parties to be considered to have
meeting of minds. The meeting of minds between parties constitutes a valid contract
although even if the object or subject matter of the contract is not yet delivered.
2.1 A valid consent constitutes a contract.
2.2 A valid acceptance constitutes a counter-offer, meaning it has the effect of
extinguishing an offer and gives rise to the new offer.
2.3 The offer is considered to have been validly accepted when it is communicated
expressly through oral or written acceptance or impliedly through act or conduct.
2.4 In accordance with Article 1319 of the Republic Act No. 386, under
Contracts, “Consent is manifested by the meaning of the offer and the acceptance
upon the thing and the cause which are to constitute the contract. The offer must be
certain and the acceptance absolute. A qualified acceptance constitutes a counter-offer.
Acceptance made by letter or telegram does not bind the offerer from the time it
came to his knowledge. The contract, in such case, is presumed to have been entered
into in the place where the offer was made,” a valid offer must be seriously intent; and
a valid acceptance must be absolute and unconditional. There can be no valid offer if a
person is lacking serious intent and no valid acceptance if a person says it in a simple
disposition to accept the offer, that is conditional, and not absolute and unqualified. The
effect of this is there will be no perfected contract because there no non-occurence of
valid offer and acceptance.

3. What are the requisites for a valid object of a contract?


3.a) The requisites for a valid object of a contract are
 The object should be determinate or determinable without entering into a new
contract;
 The object should be within the commerce of men;
 It should be capable of coming into existence; and
 It should not be physically or legally impossible.

3.b) The concepts of the objects which are “outside the commerce of men” are
objects that cannot be used to enter into a contract. The objects that are not susceptible
in transmitting the thing or service or right to another person. The examples (Jurado,
2010) of this are:
 air, sea;
 drugs, contrabands;
 relationship of husband and wife, or friends, of family
 political rights, like a person’s right to vote; and
 a property belonging to the public domain.

3.c) If there is no valid object into a contract, the contract will be lacking one of
the essential requisites and therefore will not make the contract valid.

4. The student should be able to (i) describe (ii) give at least one example each and (iii)
discuss the impact of the following contract:
1. Verbal contract
4.1.1 A verbal contract is a contract being expressed and agreed by spoken
communication of contracting parties.
4.1.2 One example for a verbal contract is a contract of sale.
4.1.3 An oral contract, like any other written and formal contracts specified by law are
valid, enforceable and legally binding as long as the presence of the valid offer and
acceptance, an intention of entering into a contract and both contracting parties has the
capacity of entering into a contract. It is valid, but for an example of Contract of Lease
beyond 1 year, a verbal contract is unenforceable.

2. Written contract
4.2.1 A written contract is a contract being expressed through writing by one of the
parties.
4.2.2. One example of this is a sale of land through an agent.
4.2.3 A written contract, compared to verbal contract, it gives the parties a chance to
browse through there agreement. But when it comes to whether the contract is valid, as
long as the essential elements are present, including the warranties and other provisions.
A valid offer and acceptance is also needed, intention of both parties and their capacity
of entering into a contract. Its impact is it legally bind the parties in a contract, unlike
verbal contract, written contract gives more certainty to the parties

3. Contracts which are required to be in a public document.


4.3.1. A contracts which are required to be in a public instrument are contracts that are
written…
4.3.2. One example of this is a contract of donation of a real property.
4.3.3. It provides convenience to the binding parties of the contract in order that their
contract may be properly registered in the proper registry to make it effective. Non-
occurrence of such public instrument will affect the validity of the contract and it will be
unenforceable.

5. In the problem given above, was there already a perfected service contract between
ELCO and Mr. Ropertini Salvastre? Determine if all the requisites of a valid contract are
present or absent.
There was already a perfected service contract between ELCO and Mr. Salvastre. All the
requisites of a valid contract are present and these are:
 Consent between the contracting parties;
 Object of the contract; and
 Cause or consideration.
5.1. The three stages of contracts are:
First: Negotiation or Preparation
In the preparation part, the contracting parties namey, ELCO and Mr. Salvastre; and
ELCO and Mr.Macky , are leading to the perfection of the contract. It is when ELCO
offer consideration to them in exchange of their service they can provide to ELCO
because of their expertise.
Second: Birth or Perfection
The second stage is when offeree accepts the offer brought by the offerer, therefore,
constitutes a valid contract expressed through writing.
Third: Termination or consummation
The termination stage is when the service is being done and when the consideration is
already paid in exchange of the services being done.

5.2. The service contract between ELCO and Mr. Ruler lacks consent and therefore
does not constitute a contract. Also, the service contract between them is null and void.
The service contract between ELCO and Mr. Salvestre has all the essential
elements needed to make a contract valid. There is a consent, both of the parties agreed;
there is also an object, which the service that Mr. Salvestre is about to incur in exchange
of the consideration; but Mr. Salvastre died at the time he is about to start his service.
There is a failure on the part of Mr. Salvastre to perform his obligation. It will never be
null and void because there is a consideration to pay and that is Php 5,000, 000
stipulated in the contract. Thus, the service contract is only voidable. And is subject to
annulment because Mr. Salvastre can not perform his obligation because he is dead.
The service contract between ELCO and Mr. Shane Macky constitutes a valid
contract because all of the essential elements (consent, object and cause) are present.

6. In the scenario between Mr. Salvastre and ELCO, if Mr. Salvastre failed to make his
design, is there a breach of contract? If there is none, explain why. If there is a breach,
explain why?
From the given scenario above, If Mr. Salvastre failed to make his design, there will be a
breach of contact between Mr. Salvastre and ELCO because it will be impossible for Mr.
Salvastre to perform his obligation.

7. In the scenario between Mr. Shane Macky and ELCO, in case Mr. Macky made an
express warranty that his architectural design is compliant with the Philippine standards,
and that the building will not collapse due to poor architectural design within two (2)
years from date of completion, but after one (1) year from its complete construction the
building collapsed: What is the remedy of ELCO, if any, and what is the effect of Mr.
Macky’s Warranty.
The student should be able to explain the concept of a warranty and evaluate the
effects of warranty on service contract between Mr. Shane Macky and ELCO.
Warranty in a contract are minor terms of a contract which are not central to the
existence of the contract. If a warranty is breached the innocent party may claim
damages but cannot end the contract.

The student should be able to evaluate the effects of the warranty by:

 Discussing the remedies of a party in case there is a breach of any of the


warranties contained in a contract;
 Citing at least two (2) provisions of the Civil Code of the Philippines in relation to
the remedies available to a party in case of breach of contract;
 Citing at least TWO (2) Supreme Court Decision in support of the answer; and
 Making a summary or a case digest of such decision.
7.1. The action for rescission or damages for breach of warranty, the buyer may, at his
election accept or keep the goods:
- and set up against the seller
- and maintain an action against the seller
- refuse to accept the goods
- rescind the contract of sale
(Art. 1599)

7.2. Provisions of the Civil Code of the Philippines in relation to the remedies available to a
party in case of contract:
Sec. 3--Conditions and Warranties, Art. 1545. Where the obligation of either party to a contract
of sale is subject to any condition which is not performed, such party may refuse to proceed with
the contract or he may waive performance of the condition. If the other party has promised that
the condition should happen or be performed, such first mentioned party may also treat the
nonperformance of the condition as a breach of warranty.
Where the ownership in the thing has not passed, the buyer may treat the fulfillment by the seller
of his obligation to deliver the same as described and as warranted expressly or by implication
in the contract of sale as a condition of the obligation of the buyer to perform his promise to
accept and pay for the thing. (n)

Chapter 6—Actions for Breach of Contract of Sale of Goods, Art. 1599. Where there is a
breach of warranty by the seller, the buyer may, at his election:

(1) Accept or keep the goods and set up against the seller, the breach of warranty by way of
recoupment in diminution or extinction of the price;

(2) Accept or keep the goods and maintain an action against the seller for damages for the
breach of warranty;
(3) Refuse to accept the goods, and maintain an action against the seller for damages for the
breach of warranty;

(4) Rescind the contract of sale and refuse to receive the goods or if the goods have already been
received, return them or offer to return them to the seller and recover the price or any part
thereof which has been paid.

When the buyer has claimed and been granted a remedy in anyone of these ways, no other
remedy can thereafter be granted, without prejudice to the provisions of the second paragraph of
Article 1191.

Where the goods have been delivered to the buyer, he cannot rescind the sale if he knew of the
breach of warranty when he accepted the goods without protest, or if he fails to notify the seller
within a reasonable time of the election to rescind, or if he fails to return or to offer to return the
goods to the seller in substantially as good condition as they were in at the time the ownership
was transferred to the buyer. But if deterioration or injury of the goods is due to the breach or
warranty, such deterioration or injury shall not prevent the buyer from returning or offering to
return the goods to the seller and rescinding the sale.

Where the buyer is entitled to rescind the sale and elects to do so, he shall cease to be liable for
the price upon returning or offering to return the goods. If the price or any part thereof has
already been paid, the seller shall be liable to repay so much thereof as has been paid,
concurrently with the return of the goods, or immediately after an offer to return the goods in
exchange for repayment of the price.

Where the buyer is entitled to rescind the sale and elects to do so, if the seller refuses to accept
an offer of the buyer to return the goods, the buyer shall thereafter be deemed to hold the goods
as bailee for the seller, but subject to a lien to secure payment of any portion of the price which
has been paid, and with the remedies for the enforcement of such lien allowed to an unpaid seller
by Article 1526.

(5) In the case of breach of warranty of quality, such loss, in the absence of special
circumstances showing proximate damage of a greater amount, is the difference between the
value of the goods at the time of delivery to the buyer and the value they would have had if they
had answered to the warranty. (n)

7.3. A Supreme Court’s decision, in the case of Ang being the Petitioner and Soledad. In a
contract of sale between Ang and Soledad, and Soledad who made an implied warranty of title.
Provided that Ang’s business of buying and selling used vehicles, he could not have merely
relied on Soledads affirmation that the car was free from liens and encumbrances. He was
expected to have thoroughly verified the cars registration and related documents.

Since what Soledad, as seller, gave was an implied warranty, the prescriptive period to file a
breach thereof is six months after the delivery of the vehicle, following Art. 1571. But even if the
date of filing of the action is reckoned from the date petitioner instituted his first complaint for
damages on November 9, 1993, and not on July 15, 1996 when he filed the complaint subject of
the present petition, the action just the same had prescribed, it having been filed 16 months after
July 28, 1992, the date of delivery of the vehicle.

On the merits of his complaint for damages, even if Ang invokes breach of warranty against
eviction as inferred from the second part of the earlier-quoted provision of the Deed of Absolute
Sale, the following essential requisites for such breach, vz:
A breach of this warranty requires the concurrence of the following circumstances:
(1) The purchaser has been deprived of the whole or part of the thing sold;
(2) This eviction is by a final judgment;
(3) The basis thereof is by virtue of a right prior to the sale made by the vendor; and
(4) The vendor has been summoned and made co-defendant in the suit for eviction at the instance
of the vendee.
In the absence of these requisites, a breach of the warranty against eviction under Article 1547
cannot be declared. [24] (Emphasis supplied), have not been met. For one, there is no judgment
which deprived Ang of the vehicle. For another, there was no suit for eviction in which Soledad
as seller was impleaded as co-defendant at the instance of the vendee.
Finally, even under the principle of solutio indebiti which the RTC applied, Ang cannot recover
from Soledad the amount he paid BA Finance.
WHEREFORE, the petition is, in light of the foregoing disquisition, DENIED.

7.4. A contract of sale between Ang and Soledad, with an implied warranty, where Ang—
Petitioner, invokes breach of warranty. The Supreme Court denied the decision because it lacks
one of the requisites to breach a warranty.
8. Analyze three (3) terms proposed by Mr. Rossini to be included in the Contract of
Lease, and determine their impact on validity of the lease contract.
1. The lessee (Mr. Rossini) will agree to lease the space for a minimum period of five
years, if he decides not to go back to Italy next year.
2. Mr. Rossini has the right to sell any goods in his restaurants, including any foods
imported from Italy, even if these are not cleared by Bureau of Customs.
3. Mr. Rossini has the right to terminate the contract, in case the ELCO (lessor)
failed to comply with his obligations set forth in the agreement, such as failure to
maintain a proper waste disposal system
In Mr. Rossini’s first condition is uncertain if he will go back to Italy or not. He should
be certain to his decision whether he will go back to Italy or not to know the period of
the contract. And for his next term, it will make the contract invalid because it is not
accepted by Bureau of Customs, therefore, those goods imported that are not approved
by BOC are considered as illegal. And for his last term, the right to terminate should be
done by the lessor because the ownership is still in the hands of ELCO.
8.1. The student should be able to analyze the rule on autonomy of contracts and
ground when a term, stipulation or condition may be considered as valid or invalid.
The rule of autonomy of contracts or freedom to contract is when any person is allowed
to enter into any contract as long as he/she is not civilly interdicted, insane even if during
lucid interval, minor individuals, deaf and mute persons who cannot read and write, and
prodigals and as long as it is not contrary to the law, morals, customs and public policy.
The grounds if the stipulation is invalid and will nullify the contract.

8.2. The student should be able to apply the principle on invalidity of terms and
conditions and discuss whether or not the three terms proposed by Mr. Rossini are invalid
or violative of any elements or characteristics of a valid contract.
The invalidity of one of the terms and condition does not result invalidity of the entire terms and
conditions and contract.

8.3 A student should be able to cite the applicable legal provisions under the Civil
Code of the Philippines for the validity or invalidity of the proposed terms and
conditions.
Art. 792 states that “The invalidity of one of the several dispositions contained in a will does not
result in the invalidity if the other dispositions, unless it is to be presumed that the testator would
not have made such other dispositions if the first invalid disposition had not been made. (n)

9. In case Mr. Rossini and ELCO decided to have a verbal lease agreement with a term of
more than one (1) year, explain and answer the following:
9.1. What is the required form to have a valid contract, if any? Explain.
The student must be able to (a) explain the rules on formality of contracts
and explain what the effects are if the formality is not observed (b) cite the
applicable legal provisions on the Civil Code of the Philippines and (c) cite at least
two (2) decisions of the Supreme Court which relates to the rules on formality of
contracts.
In order to have a valid oral contract, there should have a valid offer and acceptance,
intention of entering into a contract by both contracting parties, and has the capacity of
entering into a contract. An oral contract should have at least two witnesses.
9.1.a. These rules in a formal contract, as what I understand in m searches:
- A contract under seal. A formalized writing with a special seal attached;
- Recognizance. An acknowledgment in court by a person that he or she will
perform some specified obligation or pay a certain sum if he or she fails to perform (e.g.,
personal recognizance bond).
- Negotiable Instrument. A check, note, draft, or certificate of deposit -- each of
which requires certain formalities
- Letter of credit. An agreement to pay that is contingent upon the receipt of
documents (e.g., invoices and bills of lading) evidencing receipt of and title to goods
shipped.

9.1.b. 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. (1278a)
9.1.c The Supreme Court’s ruling in Nortion Resources and Development Corporation,
v. All Asia Bank Corporation. The Petitioner, a domestic corporation engaged in the
business of construction, applied for and was granted a loan by respondent in the amount
of Three Million Eight Hundred Thousand Pesos (P3,800,000.00) as evidenced by a Loan
Agreement, loan intended for construction of 1160 housing units. HFC acting as a
guarantor. Unfortunately, petitioner was only able to construct 35 out of the 160 housing
units proposed to be constructed under the contract. In addition, petitioner defaulted in
the payment of its loan obligation. Upon payment, HFC executed a Deed of Release of
Mortgage.
“We have stressed the rule that a contract is the law between the parties, and
courts have no choice but to enforce such contract so long as it is not contrary to law,
morals, good customs or public policy. Otherwise, courts would be interfering with the
freedom of contract of the parties. Simply put, courts cannot stipulate for the parties or
amend the latter's agreement, for to do so would be to alter the real intention of the
contracting parties when the contrary function of courts is to give force and effect to the
intention of the parties.
All told, we find no reason to disturb, much less, to reverse the assailed CA
Decision.
WHEREFORE, the instant Petition is DENIED and the assailed Court of
Appeals Decision is AFFIRMED. Costs against petitioner.”

The Supreme Court’s ruling inn Gammon Philippines, INC, v. Metro Rail Transit
Development Corporation. Parsons issued a letter of award or NOA and NTP, but
adverted because no such formal contract appears t have been executed.
“IN VIEW OF THE FOREGOING, the petition is hereby GRANTED. The
Decision of the Court of Appeals dated April 25, 2000, as well as its Resolution dated
August 31, 2000, is hereby REVERSED and SET ASIDE. The case is hereby
REMANDED to the Construction Industry Arbitration Commission for further
proceedings. No pronouncement as to costs.
SO ORDERED.”

9.2. What is the status of the contract between Mr. Rossini and ELCO if they just
have a verbal lease agreement with a term of more than 1 year?
The student should be able to (a) discuss the principle of statute of frauds
and the cite the particular provisions under the Civil Code of the Philippines
relating to the statute of frauds.
If the contract between Mr. Rossini and ELCO is under a verbal contract stating that the
lease will have a term of more than 1 year that said contract is valid but never
enforceable under the court because every contract that has a term of beyond one year
must have a written contract in order to be enforceable. Unless the verbal contract is
ratified, hence, the contract will be enforceable in courts.
9.2.a. NASA BOOK, PAGE 447! ISULAT MO NA LANG SA BONDS PAPER. (DE
LEON, 2014)
ARTICLE 1403 ANG HABA HOY PAGOD NA KO HAHAHAHAHAHA

9.3. What if after two weeks from the verbal agreement, Mr. Rossini is now
denying that there is a contract between him and ELCO, what is the remedy or remedies
of ELCO? Can ELCO directly go to court and file an action to enforce its right under
such verbal agreement?
ELCO can go directly to court and file an action
The student should be able to (a) what is an unenforceable contract (b)
discuss the remedies of a party under unenforceable contract (c) cite particular
provisions of the Civil Code of the Philippines relating to the unenforceable
contracts and give at least one (1) example
9.3.a. An Unenforceable contracts are those that cannot be enforced or given effect in a
court of law or sued upon by reason of certain defects provided by law until and unless
they are ratified according to law. (De Leon, 2014).
9.3.b. The remedy of a party under unenforceable contract is ratification under the law.
Once the contract is unenforceable yet ratified will make a contract enforceable.
9.3.c. Art. 1403. The following contracts are unenforceable, unless they are ratified:
 (1) Those entered into in the name of another person by one who has been given no
authority or legal representation, or who has acted beyond his powers;
 (2) Those that do not comply with the Statute of Frauds as set forth in this number. In the
following cases an agreement hereafter made shall be unenforceable by action, unless the
same, or some note or memorandum, thereof, be in writing, and subscribed by the party
charged, or by his agent; evidence, therefore, of the agreement cannot be received without
the writing, or a secondary evidence of its contents:
o (a) An agreement that by its terms is not to be performed within a year from the
making thereof;
o (b) A special promise to answer for the debt, default, or miscarriage of another;
o (c) An agreement made in consideration of marriage, other than a mutual promise
to marry;
o (d) An agreement for the sale of goods, chattels or things in action, at a price not
less than five hundred pesos, unless the buyer accept and receive part of such goods
and chattels, or the evidences, or some of them, of such things in action or pay at
the time some part of the purchase money; but when a sale is made by auction and
entry is made by the auctioneer in his sales book, at the time of the sale, of the
amount and kind of property sold, terms of sale, price, names of the purchasers and
person on whose account the sale is made, it is a sufficient memorandum;
o (e) An agreement of the leasing for a longer period than one year, or for the sale of
real property or of an interest therein;
o (f) A representation as to the credit of a third person.
 (3) Those where both parties are incapable of giving consent to a contract.
An example of unenforceable contract is when Tyrion Lannister lend money to Ned Stark
with Ygritte as the guarantor. Ygritte told to Tyrion Lannister that she will pay the debt of
Ned Stark in case he will not be able to pay is debt. This is unenforceable because this
promise has to be in writing.

10. Formalize and make a lease agreement between ELCO and Mr. Rossini which
contains he following information, terms and conditions:
The student must be able to (a) prepare the lease contract containing all the formal
and essential requisites of a valid contract lease (b) discuss if all the requisites of a valid
contract are present (consent, object, consideration).

10. a. Prepare a lease contract

CONTRACT OF LEASE

This represents:

This CONTRACT OF LEASE is made and executed at the City of Makati, this day
of Friday, June 8, 2018, by and between the parties:
Ms. Catelyn Stark, as a LESSOR, President of Elgamas Land Corporation, 40
years of age, single, Filipino citizen, and living at 2859 Danlig St., Makati City.
Mr. Guiseppe Ynigo Rossini, as a LESSEE, 45 years old, married to
Josefa Rossini, and with residence address at Unit 54-A Ultimate Max Tower, Bonifacio
Global City, Taguig.

Withnessth that:

TERMS AND CONDITIONS:


Ms. Stark (lessor) shall be exclusively for the purpose of providing a lease to Mr. Rossini
(lessee). And Mr. Rossini shall be exclusively for the purpose of paying for the
consideration in exchange of the leased unit, and in charge of taking care of the leased
unit in the duration of the lease term.

MONTHLY RENTAL:
Agreed rental fee of PHP Fifty Thousand Pesos (Php 50,000) per month. Philippine
Currency. All rental payments should be made to Mr. Stark (lessor).

LEASE TERM:
Agreed Lease Term is 10 years commencing on June 9, 2018 and expiring on June 9,
2028. Renewable is upon agreement of the parties.

LEASED PREMISES:
The Lessor, who is the owner of the building, will lease the Unit 5-B ELCOR Industrial
Business Park, Bonifacio Global City, Taguig City, consisting of 100 square meters to
Mr. Rossini.

Ms. Stark agrees to lease-out the property to Mr. Rossini and Mr. Rossini is willing to
pay for the leased unit of the building.

LIMITATION OF LIABILITY CLAUSE:


Subject to the terms and conditions of this Contract of Lease, no other person shall have a
liability to Lessor, with respect to the consideration, and to lessee, with respect to the
leased unit of a building. The contract shall not constitute the lessor’s and the lessee’s
personal issues and obligations. The lessee shall took only the leased unit of building tih
100 square meters. The lessor shall took only the total monthly amount of Fifty Thousand
Pesos (PhP 50,000), inclusive of tax.

EXCLUSION CLAUSE
Please note that the lessor is not liable for the payment of the the leased unit’s expenses.
These expenses are :
 Telephone expenses
 Electricity expenses
 Water expenses
 Internet expenses

EFFECTIVITY CLAUSE
The Contract of Lease shall be effective upon its perfection, 02:10 pm, June 9. 2-18.
Unless terminated earlier than June 9, 2028.

WARRANTY CLAUSE
The lessor discloses:
a. As on the date of the perfection of the contract, the life safety, electrical safety,
utilities safety, and all other things that are installed in the unit are all in good working
order;
b. As on the date of the perfection of a contract, all the appliances, chairs, tables and
all other things that can be seen in the leased unit are all working; and
c. As of the date of the perfection of a contract, the leased unit is free from
prohibited things and all in compliance with the law.

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES


PROVINCE/CITY OF MAKATI

BEFORE ME, a Notary Public for and in the MAKATI CITY, this Friday, June 8,
2018, personally appeared the above-named persons, who have satisfactorily proven to
me their identity through their identifying documents written below their name and
signature, that they are the same person who executed and voluntarily signed the
foregoing Contract of Lease which they acknowledged before me as their free and
voluntary act and deed.

The foregoing instrument consisting (2) two pages including this page has been signed.
___________________
ATTY. DAENERYS TARGARYEN
NOTARY PUBLIC
Doc. No. __
Page No. __
Book No. __
Series of: __

10.b. All of the essential requisites of contract, namely, consent, object and cause, are
present in the contract. There is a consent because there is an agreement of the will of
both of the contracting parties to enter into a contract, which is a contract of Lease, upon
an object or the subject matter, which is the leased unit of the building, and the cause that
will constitute a contract even if neither of the services--leasing the unit and the
consideration--PhP50,000 monthly is not yet delivered.
-----------------------------------------------------------------------------------------------------------
PREPARE EXAMPLES OF THE FOLLOWING WITH COMPLETE DETAILS
5Contracts attendant with the 5 vices of consent
I. CONTRACT ATTENDANT WITH MISTAKE OF FACT
 The contract states that Ms. Daenerys Targaryen will receive a chandelier in
exchange of the consideration paid to Mr. Jon Snow, owner of Home Depot,
located at Imus City, Cavite. Here, the contract is referring to uplight chandelier,
but Ms. Targaryen believed that it is downlight chandelier. The contract is
therefore null and void.

CONTRACT OF SALE OF CHANDELIER

This contract for the Sale of Chandelier is made on May 18, 2018, Thursday.

BETWEEN: HOME DEPOT, owned by Jon Snow, a corporation organized and


existing under the law of the Republic of the Philippines, located at Anabu coastal, along
Emilio Aguinaldo highway, Imus City, Cavite.
AND: Ms. Daenerys Targaryen, customer, with an address located at Alfonso Village
Alapan, Imus Cavite.

I. DESCRIPTIONS
a) The seller shall transfer the the UPLIGHT CHANDELIER to Ms. Targaryen on or
before May 19, 2018.

b) Ms. Targaryen must accept the UPLIGHT CHANDELIER and pay at a gross amount
of PHP ONE HUNDRED THOUSAND (PhP100,000).

c) Identification of the goods to this agreement shall not be deemed to have been made
until both Ms. Targaryen and the owner of Home Depot, Mr. Jon Snow have specified
that the chandelier are appropriated to the performance of this agreement.

d) Buyer shall make payment for the uplight chandelier upon delivery of the same thing.
(Cash on Delivery)

e) Possession to the subject matter shall be delivered by the seller to the buyer.

IN WITNESS THEREOF, the parties have signed this agreement at May 18, 2018.

__________________ ________________
DAENERYS TARGARYEN JON SNOW
BUYER SELLER

Signed in witness of:

_________________ ________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)


_____________________________ ) SS.

BEFORE ME, a Notary Public, this Thursday of May 18, 2018, personally appeared the
following:

Name CTC Number Date/Place Issued

JON SNOW 10000000 February 5, 20__ / Pasay City


DAENERYS TARGARYEN 10000000 January 14, 20__ / Quezon City
This instrument, consisting of two pages, including the page on which this acknowledgment is
written, has been signed on the left margin of each and every page thereof by the concerned
parties and their witnesses, and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand the day, year and place above written.

Notary Public

Doc. No. ........;


Page No. .......;
Book No. .......;
Series of 20__.

II. CONTRACT ATTENDANT WITH VIOLENCE


 Shane Walsh signed a document pertaining to donation of land because every time
she refuses, she is punched by her colleagues in the workplace, which causes
bruises to her face. (Example derived from De Leon, 2014).

DEED OF DONATION

KNOW ALL MEN BY THESE PRESENTS:

That I, SHANE WALSH, 26 years old, single, with address at 2566 Pumasa St.
Sandoval Ave, Quezon City, hereinafter referred to as the DONOR, and LORI
GRIMES, 40 years old, married to DALE GRIMES with address at Blk 7 Lot 1
Holmes Sbdv., Brgy. Kawikaan, Pasig City, hereinafter called the DONEE,
witnesseth:

That the DONOR is the registered owner of a parcel of land, more particularly a 500
square meter-land agricultural land located at Brgy. Tagbilaran, Ilocos Norte.

That the DONEE is a friend of the DONOR, who is willingly donating her land;

That FOR AND IN CONSIDERATION of the DONEE'S trust, devotion and affection
shown to the DONOR, and as an act of gratitude and liberality on his part, the
DONOR hereby voluntarily GIVES, TRANSFERS, and CONVEYS by way of
donation, unto the said DONEE, his heirs and assigns, the above described property,
together with all the improvements found thereon, free from all liens and
encumbrances;

That the DONOR affirms that this donation is not made with intent to deceive
his creditors, and that he has reserved for himself sufficient funds and property;

That the DONEE hereby accepts and receives this donation made in his favor by the
DONOR, and hereby manifests his gratefulness for the latter's generosity.

IN WITNESS WHEREOF, both the DONOR & DONEE have hereunder subscribed
their names this Friday of May 18, 2018, Quezon City, Philippines.

_____________________________ ______________________________
SHANE WALSH LORI GRIMES
DONOR DONEE

WITNESSES:

_____________________________ ______________________________
SANSA STARK CELAENA SARDOTHIEN

ACKNOWLEDGEMENT

Republic of the Philippines)


______________________) S.S

BEFORE ME, a notary for and in the City of Quezon, personally appeared:

Name CTC Number Date/Place Issued

(LORI GRIMES) 77117711 May 18, 2018 / Quezon City

known to me and to me known to be the same persons who executed the foregoing
Deed of Donation and acknowledged to me that the same is their free and voluntary
act and deed.
WITNESS MY HAND AND SEAL, on the date and place first above written.

_______________
ATTY. ROWAN WHITEHORN

Notary Public
Doc. No._____;
Page No. _____;
Book No._____;
Series of 20___.

III. CONTRACT ATTENDANT WITH INTIMIDATION


 Celaena Sardothien said that she will kill Rowan Whitehorn’s sister if he will not
sign a document pertaining to a donation of Rowan’s vacant lot at Pasig City.

DEED OF DONATION

KNOW ALL MEN BY THESE PRESENTS:

That I, ROWAN WHITEHORN, 45 years old, single, with address at Blk 9 Lot 33,
Dreamville Sbdv. Allfonso II, Imus City Cavite, hereinafter referred to as the
DONOR, and CELAENA SARDOTHIEN, 46 years old, married to DANIEL
SARDOTHIEN with 178 St. Payapa Ave. Makati City, hereinafter called the
DONEE, witnesseth:

That the DONEE is a friend of the DONOR, who is willing to donate an amount of
PHP 5 MILLION.

That FOR AND IN CONSIDERATION of the DONEE'S trust, devotion and affection
shown to the DONOR, and as an act of gratitude and liberality on his part, the
DONOR hereby voluntarily GIVES, TRANSFERS, and CONVEYS by way of
donation, unto the said DONEE, his heirs and assigns, the above amount of money.
That the DONOR affirms that this donation is not made with intent to deceive
his creditors, and that he has reserved for himself sufficient funds and property;

That the DONEE hereby accepts and receives this donation made in his favor by the
DONOR, and hereby manifests his gratefulness for the latter's generosity.

IN WITNESS WHEREOF, both the DONOR & DONEE have hereunder subscribed
their names this Friday of May 18, 2018, Imus City, Cavite Philippines.

_____________________________ ______________________________
ROWAN WHITEHORN CELAENA SARDOTHIEN
DONOR DONEE

WITNESSES:

_____________________________ ______________________________
CLARENCE KING GIZILE BAWAG

ACKNOWLEDGEMENT

Republic of the Philippines)


______________________) S.S

BEFORE ME, a notary for and in the City of Imus, Cavite personally appeared:

Name CTC Number Date/Place Issued

CELAENA SARDOTHIEN 77117711 May 18, 2018 / Imus City, Cavite

known to me and to me known to be the same persons who executed the foregoing
Deed of Donation and acknowledged to me that the same is their free and voluntary
act and deed.

WITNESS MY HAND AND SEAL, on the date and place first above written.
_______________
ATTY. JAIRA MICAH CLAVO

Notary Public
Doc. No._____;
Page No. _____;
Book No._____;
Series of 20___.

IV. CONTRACT ATTENDANT WITH UNDUE INFLUENCE


 Jeofrey Baratheon is in need of PHp 100,000 to use it for his mom’s medical
expenses. He tries to borrow from Lysandra Grimes but she instead tells him to
sell his necklace for Php 100,000. He has nobody to turn to for assistance.

CONTRACT FOR THE SALE OF NECKLACE


JEOFREY BARATHEON, hereinafter referred to as Seller, and LYSANDRA
GRIMES hereinafter referred to as Buyer, hereby agree on this Friday of May 18, in the
year 2018, to the following terms.

A. Identities of the Parties


Seller, whose business address is 2867 Alfonso Ave. Quezon City, 30 years of age,
Filipino citizen, single. And the buyer, whose business address is Blk 7 lot 2 Sunnydale
Sbdv. Quezon City, 28 years of age, Filipino citizen, single.

B. Description of the Goods


Seller agrees to transfer and deliver to Buyer, on or before Saturday, May 19, 2018 the
buyer’s necklace.

C. Buyer's Rights and Obligations


Buyer agrees to accept the goods and pay for them according to the terms further set out
below.
Buyer agrees to pay for the goods: In full upon receipt
Buyer has the right to examine the ring upon receipt

D. Seller's Obligations
Until received by Buyer, all risk of loss to the above-described goods is borne by Seller.

E. Attestation
Agreed to this Friday of May 18, in the year 2018.
By: Lysandra Grimes On behalf of Jeofrey Baratheon.

____________________
Lysandra grimes
Buyer

____________________
Barathero
Seller

NOTARY LAGAY KA

V. CONTRACT ATTENDANT WITH FRAUD


 Rowan Whitehorn sold a parcel of land to Celaena Sardothien. Rowan told
Celaena that the land is 500 square meters although he knew that it is only 100
square meters. Celaena bought the land relying on Rowan’s statement.

DEED OF SALE OF LAND

This represents:
I, Rowan Whitehorn, 35 years old, Filipino Citizen, single, living at 2544 Pacita
II, Binan Laguna, for and in consideration sum of Php 2 Million to me, paid and
acknowledge to received from Celaena Sardothien, 28 years old, Filipino citizen, single,
living at Sandoval St. Pinagbuhatan, Cavite City, do hereby SELL, TRANSFER, and
CONVEY, that a certain land, and more particularly described as follows:

TRANSFER CERTIFICATE OF TITLE NO. 112233


of the Registry of Deeds of Binan, Laguna

A parcel of land (South America St., vacant lot Pacita, Binan Laguna) to the point of
beginning, five hundred (500) square meters.
I hereby warrant my title and absolute ownership to the foregoing land and shall hold and
defend its title.

IN WITNESS WHEREOF, the parties have hereunto sign this contract of sale, May, 18,
2018, at Binan, Laguna.

____________________
ROWAN WHITEHORN
SELLER

___________________
CELAENA SARDOTHIEN
BUYER

Signed in the presence of:

_____________________ ____________________
RAMSAY BOLTON KHAL DROGO

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES


PROVINCE/CITY OF BINAN LAGUNA

BEFORE ME, a Notary Public for and in the BINAN, LAGUNA, this Friday, May 18,
2018, personally appeared the above-named persons, who have satisfactorily proven to
me their identity through their identifying documents written below their name and
signature, that they are the same person who executed and voluntarily signed the
foregoing Contract of Sale Land which they acknowledged before me as their free and
voluntary act and deed.

The foregoing instrument consisting (2) two pages including this page has been signed.

___________________
ATTY. DAENERYS TARGARYEN
NOTARY PUBLIC
Doc. No. __
Page No. __
Book No. __
Series of: __

 Deed of Sale and consolidation of two multinational companies

 Deed of Sale of Franchise of any business

ASSIGNMENT OF FRANCHISE AGREEMENT

THIS AGREEMENT is made as of May 17, 2018, Thursday, at Imus City, Cavite.
Among:
Ms. KALINDI DASI, the Franchisee and CERSEI’s Restaurant, the Franchisor.

WITHNESSTH:
TERMS AND CONDITIONS:
By Agreement dated, May 17, 2018, the Ms. Kalindi Dasi (franchisee) desires to operate
and manage an CERSEI’s Restaurant to be located at Quezon City of , County of
Philippines.

RIGHTS:
The Franchisee will be operating a service business under the name of the Franchisor.
The Franchisor grants the Franchisee during the period of this Agreement and subject to
the terms and conditions hereof the rights to carry on the Business in accordance with this
Agreement.

LEASE TERM:
The term of the agreement will commence from the time both parties agreed and sign the
contract May. 17, 2018, Thursday. The Contract of Franchise will terminate from then
time the period of the contract expires, which is 3 years after the perfection of a contract,
dated May 17, 2021.

RENEWAL
If the Franchisee gives written notice of his desire to renew the Agreement, then
provided that at the time such notice is given this Agreement is valid and
subsisting and the Franchisee shall not be in breach of his obligations under this
Agreement, the Franchisor and the Franchisee will enter into a new standard
Agreement in such form as is currently being offered to new Franchisees at that
time, to operate from the date of the expiry of this Agreement.

The franchise fees payable – there will be upfront and ongoing fees payable.
These include the upfront fee to buy into a franchise, the training fees, costs for
stock, store fit-out, royalties and advertising. The fees may be a fixed amount or
a percentage of the business’ turnover.

Territory rights – the franchisee will more than likely want to make sure they are
the only franchise operating in the area. However as the franchisor, you may not
want to limit the growth potential of your business. This is an important clause to
negotiate.

OPERATION:
- Assist the Franchisee to establish and efficiently operate the
Business from the Premises and to provide him with a Manual, the
copyright in which shall at all times remain the property of the
Franchisor;
- Train the Franchisee and the Franchisee’s staff in the correct
operation of the Business.
- The Franchisee shall ensure that any items of equipment regularly
used by the Franchisee in carrying out the Services, shall carry such
words devices and/or designs and in such prominence and colour,
as may be specified by the Franchisor

SALE OF THE BUSINESS:


- The Franchisee may not assign or delegate his Franchise or any
other right or obligation under this Agreement, but may sell his
Business with the prior written consent of the Franchisor
- The Franchisor undertakes to grant to a purchaser of the
Franchisee’s Business who is acceptable to the Franchisor, an
Agreement for the period of not less than three years commencing
on the date of the sale of the said Business such Agreement to be in
the form of the standard Agreement offered by the Franchisor to its
Franchisee’s current at that time

DEFAULT AND TERMINATION:


The Franchisor shall have the right upon the occurrence of any of the following
events immediately terminated this agreement by giving a written notice to
Franchisee, which termination shall become effective immediately upon the
giving of such notice.
These contract will terminate three years after the contract is perfected.

In the event of earlier termination of a contract:


- The Franchisee shall cease himself or herself from operating the
Restaurant under the name of the Franchisor.
- The Franchisee shall remove, obliterate or destroy all the signs and
advertisements that are identifiable in any way the Franchisee’s
name and performed such reasonable decoration ad remodelling
under the expense of the Franchisee.

------------------------------------------------------------------------------------------------------------
 Deed of Usufruct between a school and a private individual

CONTRACT OF USUFRUCT

This represents:

This Contract of Usufruct is made and entered into by and between:

Beatriz Prior (name of the representative), a businesswoman, has an organized business


and is existing under the law of Republic of The Philippines, located at 7171 Pinasa St.
Quezon City represented in this transaction is, hereinafter called the “OWNER”.

The Hogwarts School, an Agency of the government, with the address at Alapan 1B,
Imus City, Cavite, represented by the School Principal, Harry Potter, hereinafter called
the “USUFRUCTUARY”.

Withnessth:
That the owner, named Beatriz Prior, holds the title in fee to a parcel of land consisting
50 square meters, together with all improvements situated at Imus City, Cavite,
Philippines, covered by Transfer Certificate f Title No. 717273.

Transfer Certificate of Title No. 717273


That for and in consideration of a desire to contribute a share for a cause of
education for the students which the USUFRUCTUARY inspires in the OWNER, as an
act of generosity. The DONOR voluntarily and freely transfers to the
USUFRUCTUARY his successors and assigns, all the rights, title and interest which
said OWNER has in the above described real property, together with all the buildings
and improvements found therein, free from all liens, encumbrances and charges
whatsoever.
That the OWNER hereby warrants for the purpose of giving full effect and
validity to this usufruct and has the legal right to enter in the Contract of USUFRUCT of
the said property being to free portion under the new Civil Code and other existing laws,
which he can freely dispose of.
That the OWNER has taken legal possession of the property and hereby expresses
his gratefulness for the kindness and generosity of the DONOR.

IN WITNESS WHEREOF, the donor and the donee have signed this Contract of
Usufructuary, May, 17, 2018, Imus City, Cavite.

__________________
BEATRIZ PRIOR
OWNER

___________________
HARRY POTTER
SCHOOL PRINCIPAL

Signed in the presence of:

_____________________ ____________________
MERVIN MALARAN YURI LABAY

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES


PROVINCE/CITY OF IMUS

BEFORE ME, a Notary Public for and in the IMUS CITY, CAVITE, this Thursday,
May 17, 2018, personally appeared the above-named persons, who have satisfactorily
proven to me their identity through their identifying documents written below their name
and signature, that they are the same person who executed and voluntarily signed the
foregoing Contract of Usufructuary which they acknowledged before me as their free and
voluntary act and deed.

The foregoing instrument consisting (2) two pages including this page has been signed.
___________________
ATTY. DAENERYS TARGARYEN
NOTARY PUBLIC
Doc. No. __
Page No. __
Book No. __
Series of: __

------------------------------------------------------------------------------------------------------------
 Deed of Sale of house and lot
DEED OF SALE OF HOUSE AND LOT

This represents:
I, Arya Stark-Lannister, 25 years old, Filipino Citizen, married to Jeofrey
Lannister, living at Alfonso Village, Alapan 1-B, Imus Cavite, 4103, for and in
consideration sum of Php 5 Million to me, paid and acknowledge to received from
Robert Baratheon, 30 years old, Filipino citizen, single, living at Sandoval St.
Pinagbuhatan, Pasig City, do hereby SELL, TRANSFER, and CONVEY, in a manner
absolute and irrevocable to Stannis Baratheon and Tommen Baratheon, his wife and
son, that a certain house and lot situated at buyer’s domicile, and more particularly
described as follows:

TRANSFER CERTIFICATE OF TITLE NO. 112233


of the Registry of Deeds of Tagaytay City

House and Lot (Blk 6 Lot 1-F South America St., Washington Subdivision) to the point
of beginning, two hundred fifty (250) square meters, more or less.

I hereby warrant my title and absolute ownership to the foregoing real estate property and
shall hold and defend its title.

IN WITNESS WHEREOF, the parties have hereunto sign this contract of sale, May, 16,
2018, at Imus City, Cavite.

__________________ ___________________
ARYA STARK-LANNISTER JEOFREY LANNISTER
SELLER HUSBAND
___________________
ROBERT BARATHEON
BUYER

Signed in the presence of:

_____________________ ____________________
RAMSAY BOLTON KHAL DROGO

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES


PROVINCE/CITY OF IMUS

BEFORE ME, a Notary Public for and in the IMUS CITY, CAVITE, this Wednesday,
May 16, 2018, personally appeared the above-named persons, who have satisfactorily
proven to me their identity through their identifying documents written below their name
and signature, that they are the same person who executed and voluntarily signed the
foregoing Contract of Sale of House and Lot which they acknowledged before me as their
free and voluntary act and deed.

The foregoing instrument consisting (2) two pages including this page has been signed.

___________________
ATTY. DAENERYS TARGARYEN
NOTARY PUBLIC
Doc. No. __
Page No. __
Book No. __
Series of: __

CITE 5 CONCEPTS LEARNED IN CLASS RELATING TO HONESTY AND HOW


DO YOU DEMONSTRATE THESE CONCEPTS IN CLASS, FAMILY, PERSONAL
LIFE AND FUTURE CAREER.
 Good faith. People should do things in good faith.
 Acceptance
 Performance or Payment

Grading
Pass All questions and examples asked are comprehensively answered
Merit Must firstly achieve all terms included with comprehensive answers to pass.

Notes
 Write in your own handwriting in a long bond paper. Single space
 Provide a table of Contents
 Duplication of work will merit a failing grade
 Your handwriting must jive with your handwriting in quizzes
 Do not submit if incomplete
 End nothing must be strictly
observed. Material quoted from any source must be
acknowledged with appropriate end notes.
 Copying and pasting material from the Internet is considered in act of
PLAGIARISM if not acknowledged with appropriate end notes
 Evidence of academic research must be present to support your assignment ( a
minimum of 2 books for Business students, journals, and websites).

REFERENCES:
 https://www.lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
 Desiderio Jurado. (2010). Comments and Jurisprudence on Obligations and Contracts.
Manila, Philippines. REX Book store.
 Hector S. De Leon, et al. The Law on Obligations and Contracts. Manila Philippines.
REX Book Store.
 http://www.dptlaw.asia/forms/LEGAL%20FORMS/Deed%20of%20Absolute%20Sale%20
of%20Real%20Property%20Sample.pdf
 https://www.slideshare.net/joansherbie/contract-of-usufruct
 http://legal-forms.philsite.net/lease-contract.htm
 https://www.ucalgary.ca/biztechlaw/node/156
 https://www.lawinsider.com/clause/effective-date-of-this-lease-duration-of-lease-term
 http://contracts.onecle.com/el-pollo-loco/franchise.2004.03.02.shtml
 https://www.franchiseworld.co.uk/archives/675
 http://e-lawresources.co.uk/Conditions%2C-warranties-and-innominate-terms.php
 http://www.chanrobles.com/civilcodeofthephilippinesbook4.htm
 http://sc.judiciary.gov.ph/jurisprudence/2008/september2008/177874.htm
 http://www.chanrobles.com/civilcodeofthephilippinesbook3.htm
 https://www.biztree.com/doc/contract-for-the-sale-of-goods-D1237
 legal-forms.philsite.net/contract-to-sell.htm
 http://legal-forms.philsite.net/deed-of-donation.htm
 http://www.shsu.edu/klett/CONTRACTS%20BASIC%20PRINCIPLES%20ch%2010%20
new.htm
 http://sc.judiciary.gov.ph/jurisprudence/2009/november2009/162523.htm
 http://sc.judiciary.gov.ph/jurisprudence/2006/jan2006/G.R.%20No.%20144792.htm

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