Student Name : UY, RAY ALLEN L. Professor : ATTY. JOSE T.

Section : BA11

IV. Focus Questions

A. Define the following: a) stipulation pour autrui; b) contract; c) option contract; d) acceptance

Stipulation “pour Autrui”

Stipulation in favor of a third person made by the contracting parties with the clear and deliberate
intention of conferring a favor upon such third person and whose fulfillment the latter may demand by
communicating his acceptance to the obligor before its revocation.

Contract

“as juridical convention manifested in legal form, by virtue of which, one or more persons bind
themselves in favor of another or others, or reciprocally, to the fulfillment of a prestation to give, to do, or not to
do.”

Option Contract

one giving a person a certain period within which to accept the offer of the offerer.

Acceptance

Acceptance of the offer must be absolute. If qualified, it constitutes only a counter-offer and the contract
is not perfected unless the counter-offer is counter accepted. In short, a counter-offer extinguishes the original
offer.

B. Discussions:

(1) Give the requisites when the following will vitiate consent. A) fraud; b) intimidation; violence.

Requisites of Fraud

a. The fraud must be serious

b. The party must not be in pari-delicto, that is, it should not have been employed by both contracting parties. If
both are at fault, the court will not entertain them under the principle “he who comes to court must do so
with clean hands”.
c. There must be a deliberate intent to deceive or to induce.
d. The other party relied on this untrue statement.

Requisites of Intimidation

a. Reasonable and well grounded fear

b. Of an imminent an grave evil
c. Upon his person, property or upon the person or property of his spouse, descendants or ascendants.
d. The very reason why the contract is entered into.
e. The threat must be of an unjust act, or actionable wrong.

Requisites of Violence

a. Employment of serious or irresistible force.

b. The very reason why the contract is entered into

(2) How are contracts perfected?

a. If consensual- by mere consent.

b. If real- by delivery
c. If formal or solemn- special form is required for its perfection

(3) Will the acceptance of a business advertisement of a thing for sale produce the perfection of a
contract? Explain.

If the offer is definite or certain, that is, all specific particulars needed in the contract are present in the
advertisement, the offer is definite. If important details are not stated, it is only considered as a mere invitation to
make an offer.

Rules: a. Unless it appears otherwise, business advertisements of things for sale are not definite offers, but mere
invitations to make an offer.
b. Advertisements for bidders are simply invitations to make proposals, and the advertiser is not bound to
accept the highest or lowest bidder, unless the contrary appears.

C. Problems:

1. S agreed to deliver to B 500 cavans of rice at P600 per cavans. S delivered only 490 cavans deliberately
misrepresenting that the delivery consisted of 500 cavans. Can B as the court to annul the contract on the
ground of fraud? Why? (5pts)

Answer:

B can request that the court revoke the agreement on the ground of misrepresentation since this
circumstance is a portrayal of Causal Fraud (extortion utilized by a gathering to prompt the other to go into an
agreement without which the last would not have consented to, considering the conditions of the case) or
extortion utilized to make sure about the assent of the other party, which is a ground for the revocation of an
agreement despite the fact that it might offer ascent to an activity for harms.

2. S Sold his house to B believing that B was C. Can S legally withdraw from the contract on the ground of
mistake? Why? (5pts)

Answer:

S can legitimately pull back from the agreement on the ground of mix-up on the grounds that under
Article 1331, In request that error may refute assent, it ought to allude to the substance of the thing which is
the object of the agreement, or to those conditions which have chiefly moved one or the two gatherings to go
into the agreement. Mix-up concerning the character or nature of one of the gatherings will vitiate assent just
when such personality or capabilities have been the chief reason for the agreement. A straightforward error of
record will offer ascent to the rectification.
 3. D owes C P20,000. Both are house painters. It was agreed that D instead of painting C, will paint the
house of E to E expressed his conformity to C whose service as painter was previously contracted by E.
Has B the right to enforce the stipulation between C and D? Why? (5pts)

Answer:

Under Article 1311 section 2. On the off chance that an agreement ought to contain some specification in
favor of a third person, he may request its fulfillment provided he imparted his acceptance to the obligor
before its revocation. A minor accidental benefit or enthusiasm of an individual isn't adequate .The
contracting parties should have clearly intentionally presented a favor upon a third individual

V. Exercises / Learning Activities

A. Problem Analysis:

(1) Mr A wants to sell his book but he has no time to do so. Thus, he hired Mr C to sell his book. Mr C offered
to sell Mr A’s book to Mr. B for P500 on June 5, 2013, Mr B accepted the offer by sending a letter to Mr C
on June 6, 2013. Mr C received and read the letter on June 10, 2013. Mr C informed Mr A about the
acceptance on June 11, 2013. When was the transaction perfected? Why? (5pts)
(2) A, a consistent scholar and honor student for three years in M University and he enjoyed free tuition
privileges. In his fourth year, he decided to study in a university in Davao as his father died and he has to
stay with his mother. He needed the transcripts of his records in M University, but the latter refused to
issue them until he had refunded the whole amount of tuition fees given to him for 3 years of his stay,
alleging that he signed the agreement beforehand and waiving his right to transfer to another university
without having refunded the cash equivalent for his scholarship. A was forced to refund the amount as he
did not want to be late for his enrolment in the Davao university. Later he sued for its return. Can A
recover the amount he refunded to M University? Reason for the answer. (5pts)
(3) Mr. A offered to sell his book to Mr B for P500 on June 5, 2013 while they were having dinner in a
restaurant. Mr A informed Mr B that he has five days to accept. Mr A died on June 6, 2013. Mr. A
accepted the offer on June 10, 2013 by sending a letter. Is there a perfected contact? Why? (5 pts)

VI. Assignments

CASE DIGEST:

(1) So Ping Bun v. Court of Appeals, 257 SCRA 536 (1996) (10 pts)

FORMAT

I. Facts of the Case

II. Decisions Made
(1) Lower Court
(2) Appellate Court
(3) Supreme Court
III. Personal Evaluation.