 Valid. The contract alone is just B selling a license gun to A, no more no less.

5. A bought from B the latest Iphone 11 Pro for only P 500.

 Valid. The contract alone is just B selling a license gun to A, no more no less. However, it will be the buyer’s
responsibility to reasonably examine item before making a purchase.

III. Enumeration.

1. Stages in Making a Contract

 Preparation/Conception
 Perfection/Birth
 Consummation
 Termination/Death

2. Essential Requisite of a Valid Contract

 Article 1318 of the Civil Code states that there is no contract unless the following requisites concur:
1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract.
3. Cause of the obligation which is established.

3. Requisite of Fraud (Dolo Causante)

 According to Article 1338 of the Civil Code of the Philippines:

1. It was applied or utilized by one contracting party upon the other; if both committed fraud, the contract
is valid.
2. It must be serious deception or misrepresentation.
3. It must have induced the victim to enter into the contract.
4. It must have resulted in damage or injury to the victim.

4. Requisite of a Valid Object of Contracts

 According to Article 1347 of the Civil Code of the Philippines:

1. All things which are not outside the commerce of men, including future things, may be the object of a
contract. All rights which are not untransmissible may also be the object of contracts.
2. No contract may be entered into upon future inheritance except in cases expressly authorized by law.
3. All services which are not contrary to law, morals, good customs, public order or public policy may
likewise be the object of a contract.

IV. Essay. Answer with legal basis.

1. "A" to avoid foreclosure of his House and Lot executed a fictitious Deed of Sale to "B". Subsequently, "B" without the
knowledge of "A" sold the said House and Lot to "C”. Can "A" recover the House and Lot?

 Yes, A may still recover the house and lot.

 According to Article 1345-1346, simulation of contract may be absolute or relative. The former takes place when
the parties do not intend to be bound at all. A simulation is absolute when the contract (which is the
fictitious deed of sale) does not really exist and the parties do not intend to be bound at all, and so a fictitious
contract is void.