Lauren Nicole C.

Alonzo
REM123- Week 6 and 7

ULOa.

Let’s Check
Activity 1.

1. Here in perfection of a contract, there has been a mutual agreement between two
or more parties along with their agreed terms. For example, Ms. Conjuangco
borrowed 15,000 pesos with 5% legal interest from Mr. De Leon and this is
stipulated in their contract alongside with the date of the payment.
2. The cause of contract is simply the basis or the grounds on why there are two or
more parties who agreed in a contract. For example, Jhana intended to sell the
puppies of her dog to Lauren.
3. As for reformation, it means that when the agreements stipulated in the contract
did not reveal the real intentions of both parties, if there is typographical errors,
and there are mistake which is committed in good faith, then they could avail the
relief through reformation.

Let’s Analyze
Activity 1.

1. In option contract, the offerer could withdraw the contract any time before
acceptance of the offeree but it needs to be in communication. Moreover, the
withdrawal of the option cannot be accepted if there is something paid or
promised.
2. The party’s motive will not affect the validity of the contract because its illegality
will not void the contract. However, a motive will only affect the validity of the
contract if it is intertwined with the cause, then it will become the latter and will
make the contract void.
3. No, here in the Philippines, selling of organs is contrary to law and is not allowed
to take place. However, it will only be valid if Shammy will donate her kidney.

In A Nutshell

1. Provided by the SIM.

2. The motive will only invalidate the contract if the motive will intertwine with the cause,
then it becomes the latter.
3. In the advertisement for bidders, the advertiser gets to choose who he will have a
contract with, may it be the lowest bid or the highest.
4. A contract is terminated when an obligation is already performed by both parties.
5. In option contract, the offerer could withdraw the contract any time.
ULOb.

Let’s Check.
Activity 1.

1. Rescission of contracts mean that a contract will be voided because of the

presence of requisites that will damage to one of the parties that will revoke the
contract.
2. Ratification means when someone voluntarily performs an act that will cleanse
the contract from all of its flaw and proceeds to perform the obligation in good
faith.
3. Statute of frauds are all things or informations that need to be written for the
validity of the contract. It may be written in a piece of paper, notes, cellphone,
and etc. It is also a legal document that would prove a certain appeal of different
contracts.

Let’s Analyze.
Activity 1.

1. Yes, rescission will apply in this situation because the third person acted with bad
faith after the object was transferred to him.
2. Contracts that are annulled are those that are done in an onerous action, while
voidable contracts are those who are contrary to law, morals, public orders, and
etc. However, there are exceptions if the ward has a guardian or in his lucid
interval state.
3. In this contract, it is valid because Mike is capacitated to enter the contract with
the reason that he is in his lucid interval state. However, on the other party, it will
only be valid if Shammy has a guardian that has the capacity to comply to the
contract.

In A Nutshell.

1. Provided by the SIM.

2. There are two kinds of frauds: causal fraud which means there is a
misrepresentation of product or object; and incidental fraud which gives rise to
indemnification of damages.
3. A dealer’s talk/ merchant’s talk/ trader’s talk is considered as a marketing
strategy in the business industry.
4. You cannot enforce your right before the court of law.
5. A ward is a person that is under a guardianship and will be valid if entered into a
contract.