Distinguish consensual from real contracts and name at least four (4) kinds of real

contracts under the present law.(1998 Bar Question)

Consensual contracts are those which are perfected by mere consent (Art. 1315, Civil
Code). Real contracts are those which are perfected by the delivery of the object of the
obligation. (Art. 1316, Civil Code) Examples of real contracts are deposit, pledge, commodatum
and simple loan (mutuum).

A contract to sell is the same as a conditional contract of sale. Do you agree? Explain your
answer. (2012 Bar Question)

No. A contract to sell is specie of conditional sale. The contract to sell does not sell a
thing or property; it sells the right to buy the property. A conditional sale is a sale subject to the
happening or performance of a condition, such as payment of the full purchase price, or the
performance of other prestation to give, to do, or not to do. Compliance with the condition
automatically gives the right to the vendee to demand the delivery of the object of the sale. In a
contract to sell, however, the compliance with the condition does not automatically sell the
property to the vendee. It merely gives the vendee the right to compel the vendor to execute the
deed of absolute sale.

Baldomero leased his house with a telephone to Jose. The lease contract provided that Jose
shall pay for all electricity, water and telephone services in the leased premises during the
period of the lease. Six months later. Jose surreptitiously vacated the premises. He left
behind unpaid telephone bills for overseas telephone calls amounting to over P20,000.00.
Baldomero refused to pay the said bills on the ground that Jose had already substituted
him as the customer of the telephone company. The latter maintained that Baldomero
remained as his customer as far as their service contract was concerned, notwithstanding
the lease contract between Baldomero and Jose. Who is correct, Baldomero or the
telephone company? Explain. (1996 Bar Question)

The telephone company is correct because as far as it is concerned, the only person it
contracted with was Baldomero.

Novation which consists in substituting a new debtor in the place of the original one, may
be made even without the knowledge or against the will of the latter, but not without the consent
of the creditor. (Art. 1293, NCC)
 The telephone company has no contract with Jose. Baldomero cannot substitute Jose in
his stead without the consent of the telephone company. Baldomero is, therefore, liable under the
contract.

Distinguish briefly but clearly between Inexistent contracts and annullable contracts. (2004
Bar Question)

Inexistent contracts are considered as not having been entered into and, therefore, void ob initio.
They do not create any obligation and cannot be ratified or validated, as there is no agreement to
ratify or validate. On the other hand, Annulable or VVoidable Contracts are valid until
invalidated by the court but may be ratified.

In inexistent contracts, one or more requisites of a valid contract are absent. In anullable
contracts, all the elements of a contract are present except that the consent of one of the
contracting parties was vitiated or one of them has no capacity to give consent.

Michael Fermin, without the authority of Pascual Lacas, owner of a car, sold the same car
in the name of Mr. Lacas to Atty. Buko. The contract between Atty. Buko and Mr. Lacas is
--- (2012 Bar Question)

The contract between Atty. Buko and Mr. Lacas is unenforceable.

Under the law, contracts entered into in the name of another person by one who has been given
no authority or legal representation, or who has acted beyond his powers are unenforceable.

Here, Michael Fermin had no authority but he sold the car in the name of Mr. Lacas, the owner.
This renders the contract unenforceable.