9 Activity 1

Facts:

On July 10, 1991, Multi-Ventures Capital Corporation lodged a protest for instrument reformation
against Stalwart Management. The respondents received a loan from the former, but only for personal
use. The deal was classified as a sale because the petitioner obtained numerous Land Bank bonds from
the respondent, and the Association served as a partial colateral for the loan's repayment.

Issues:
The loan or selling deal entered into by multi-ventures capital and management firm and stalwart
operation.

Ruling

There is a meeting of the minds of the parties to the contract. It is no less than necessary that the parties
must already have agreed on the object and consideration of the contract. In the current situation, there
is no question that the affiliation has a meeting of the minds. The parties' sale deal, entered into in
January 1991, is correctly reflected in the Confirmation of Agreement. Appellant refused to demonstrate
that errors were made

A. Can the instrument be reformed? Why or why not?

- According to the Law which is given, contract can be reformed because the details were not
complete stated and the intentions with contract are not completely expressed.

B. How can you determine that the written agreements is different from the intention of parties?

- Technically, if we are in loan. There must be an interest on top of it, basically we can see that there
might be an hidden motives behind of it .

C. Explain the presumption of validity of contracts?

- Validity wise, the contract is actually valid it is because agreement has been agreed by the both
parties. And the subject of contract is also present and that means the obligations has been established.