Art 1323 – Offer becomes Ineffective ART 1324 AND ART 1479

- The offer becomes ineffective when either of the ART 1324 ART 1479
parties: -General Rule -A promised to buy or
-Death regarding Offer and sell (Unilateral)
-Civil Interdiction Acceptance -Withdrawal is possible
-Insanity even after the
-Insolvency acceptance if there is no
consideration
Before the acceptance is conveyed
Other grounds which render ineffective: Art 1325- Business Advertisements
- Failure to comply with the condition of the offer - They are not definite offers but mere invitation
as to time, place and manner of payment to make an offer
- Expiration of the period fixed in the offer for - Exception: If the advertisement is complete
acceptance with all necessary in contract and if it is
- Destruction of the thing before acceptance accepted then there is a perfection of contract
- Rejection of the offer
Art 1326 – Bidders in Advertisement
Art 1324- Offer (Certain Period)
- Advertisements with bidders are invitations to
- When the offerer allowed the offeree a certain make a proposal
period to accept - Advertiser is not bound to accept the highest or
- The offer may be withdrawn before acceptance lowest bidder unless contrary appears
and must communicate the withdrawal - Advertiser is free to accept or reject the offer
- Exception: when the option is founded as of the bidders
consideration as something paid or promised
- Exception: Does not give the offerer to
Art 1327 – Consent of Contract cannot be given to
withdraw the offer because of consideration of
the following (Can be victims of fraud):
money or promised.
- Unemancipated minors (a minor who is subject
to the control, authority, and supervision of his
Contract of Option
or her parents or guardians)
- Consideration - Insane
- Privilege of the offeree an offer within a certain - Demented Persons
period - Deaf-mutes (do not know how to write)
A. Option Period
- Period given which the offeree must accept the
offer Art 1328 – Contracts that are valid and voidable
B. Option Money
- Lucid Interval – shall be valid
Option Money Earnest Money - Temporary period of sanity
Money paid or Partial payment of - Drunkenness and hypnotic spell – voidable
promised as purchase price (down -impairs one’s capacity to give
consideration of the payment) intelligent consent
option Proof of the -equivalent to temporary sanity
perfection of the
contract
Art 1329 – Special Disqualifications

- Art 1327 – voidable when persons stated

entered into a contract
- Exception: However it can be modified by law
which makes the consent valid
 1. Necessities such as food are sold and
delivered to minor without capacity to act,
shall pay a reasonable price
2. A minor 18 years old and above may enter a
contract- life, health and accident insurance
3. Through a guardian or legal representative
4. Minor misrepresented his age and convince
other to believe that he has a legal capacity
5. 18-21 years old – makes the consent valid if
he voluntarily pays a sum of money or
delivers a fungible thing provided that the
oblige spent or consumed it on good faith
Other special disqualifications: (May be placed
under guardianship) - Valid
1. Accessory penalty of civil interdiction
2. Hospitalized lepers
3. Prodigals
4. Deaf and dumb (unable to read and write)
5. Unsound mind
6. Needs aid of others
Prodigal is presumed to have the capacity to
enter a contract:
1. Insolvents until discharged
2. Married woman
3. Husband and wife with respect to sale of
property to each other
4. Other persons specifically disqualified by
law
Art 1330 – Voidable Contracts:
When it is given by: (Vices of Consent)
- Mistake
- Violence
- Intimidation (threat)
- Fraud
- Undue influence
Characteristics of Consent: (based on genuine assent)
1. Intelligent (capacity to act)
2. Free and Voluntary (no violence and
intimidation)
3. Conscious or spontaneous (mistake, undue
influence or fraud)
Causes vitiating
consent Causes of incapacity
Temporary More or less permanent
Contract itself Person entering the contract
Art 1331 – Mistake (Invalidates contract)
- Mistake or error is the false notion of the thing
or a fact material to the contract
Nature of Mistake: (Fact or Law)
1. Mistake of fact (Ignorance or lack of
knowledge)
2. Substantial Mistake of Fact – party would not
give the consent if he had known that it is a
mistake
*Not every mistake will vitiate the consent and make
it voidable
3. Unilateral or Bilateral – cannot avoid liability
unless proves that he is free of fault or negligence
Mistake of Fact to which law refers: (vitiate the
consent)
1. Object of the contract
2. Conditions which have principally moved one or
both parties to enter into the contract
3. Identity or qualifications of one of the parties
provided the same was the principal cause of
contract
Mistake of Fact which does not vitiate the consent:
1. Errors as regards to incidents of the thing or
accidental qualities (MISTAKE REGARDING
THE OBJECT) – mali yung binibili mo kase
iba pala ang binebenta
2. Quantity or Amount – only gives rise to a
correction (MISTAKE REGARDING
CONDITION OF THE CONTRACT) - yung
kunwari nabili ka ng land kay B for 200k tas
akala mo pede intallemnts
3. Errors as regards to motive
4. Identity or Qualifications (MISTAKES
REGARDING IDENTITY OR
QUALIFICATIONS) – Yung akala mo
kunwari ay ang pinagbebentahan mo ay doctor
yun pala lawyer
5. Errors which could have been avoided
(MISTAKE REGARDING WHICH COULD
HAVE BEEN AVOIDED)
 disclose pala na mortgage so the document does
not show true intention)

Effects of Mistake of Account:

Art 1335 – Violence and Intimidation
1. Simple – does not affect essential requisites
2. Gross – (yung maling amount yung nalagay sa Nature of Violence or Force (EXTERNAL)
document) or (pag maling sukat naman pala -physical force
talaga kesa dun sa napag usapan, pedeng ma
cancel yung contract) Nature of Intimidation or threat (INTERNAL)

Art 1332 – Mistake or Fraud (Unable to read or
using different language)
- The part enforcing the contract must unsure that
it is free of fraud and mistake. If not then there is
fraud or mistake
Art 1333 – No mistake
- There is no mistake if the person knew the
doubt, contingency or risk affecting the object of
the contract
- If party knew about the risk then he is willing to
take chances and cannot claim mistake
-reasonable or well-grounded fear of evil
-evil must be imminent or grave
-evil must be upon his person or property
-reason why he enters contract
Factors to determine degree of intimidation:
- Reverential fear – Valid (contract)
Threat to enforce just or legal claim
- Does not vitiate a consent
- Practice followed by creditors to demand
payment
- (yung court and magbibigay ng consequences)

Art 1334 – Mutual Error

- Mutual error as to the legal effect of agreement

when the real purpose of the parties is frustrated
may vitiate the consent

Mistake of Law – ignorance of some provisions of

law from an onerous interpretation or onerous
conclusion

Effect of Mistake of Law – does not invalidate

consent

When mistake of Law vitiates the consent:

- Doubtful question of law

- Construction or application of law
- Ignorance of the law excuses no one

Requisites of Art 1334:

1. Error must be mutual – (example ay akala nila

and antichresis ay same sa mortgage)
2. Legal effect of an agreement
3. Frustrate real purpose of the parties –
(example ay nag agree sa sale pero may naka