Course Title : OBLICON Professor : ATTY. JOSE T.

YAYEN
Sections : BA11 and BA12

Learning Module No. 3

Learning Module Title: GENERAL PROVISIONS OF CONTRACTS and
ESSENTIAL REQUISITES OF CONTRACTS

I. Introduction / Overview

This MODULE will give the knowledge of the GENERAL PROVISIONS OF CONTRACTS and ESSENTIAL REQUISITES
OF CONTRACTS.

II. Learning Goals and Objectives

To know the GENERAL PROVISIONS OF CONTRACTS and ESSENTIAL REQUISITES OF CONTRACTS and their
concept and applications and to relate them in daily experiences.

III. Lecture Notes

Refer to the attachment in power point presentation.

IV. Focus Questions

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

B. Discussions:

(1) Give the requisites when the following will vitiate consent. A) fraud; b) intimidation; violence.
(2) How are contracts perfected?
(3) Will the acceptance of a business advertisement of a thing for sale produce the perfection of a
contract? Explain.

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)
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)
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)
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.

VII. Assessments / Evaluations

The usual long quiz shall be used as manner of evaluation.

VIII. Related Readings

(1) Martinez v. Hongkong & Shanghai Bank 15 Phil 252

(2) International Corporate Bank v. Gueco, 352 SCRA 516.