Articles 1318-1344

1. What are the requisites of a valid contracts?

The requisites of a valid contract are:

a. Consent of the contracting parties;

b. Object certain which is the subject matter of the contract;
c. Cause of the obligation which is established.

2. What is option contract?

Option contract is one giving a person for a consideration a certain period within which to
accept the offer to the offerer. It is separate and distinct from the contract which will be perfected
upon the acceptance of the offer.

3. What is option period?

Option period is the period given within which the offeree must accept the offer.

4. What is option money?

Option money is the money paid or promised to be paid in consideration for the option.

5. Enumerate the persons who cannot give consent.

The following are the persons who are incapacitated to give consent:

a. Unemancipated minors
b. Insane or demented persons
c. Deaf-mutes

6. What is lucid interval?

Lucid interval is a temporary period of sanity.

7. What are the vices of consent?

The vices of consent are

a. Error of mistake (Art. 1331);

b. Violence or force (Art. 1335);
c. Intimidation or threat or duress (Ibid);
d. Undue influence (Art. 1337); and
e. Fraud or deceit (Art. 1338)
8. What are the kinds of fraud in the making of contract?

The two kinds of fraud in the making of contract are:

a. Causal fraud – a ground for the annulment of a contract, although it may also give
rise to an action for damages.

b. Incidental fraud – only renders the party who employs it liable for damages because
the fraud was not the principal inducement that led the other to give his consent.