HANDOUT NO.

17

A. Persons Incapacitated to give their consent --

1) Minors;
2) Insane or demented persons;
3) Deaf mutes who do not know how to read and write;
4) Persons suffering from civil interdiction; or
5) Incompetents under guardianship.

B. Persons Prohibited from entering into contracts (not exclusive)

1) Insolvents;
2) Husband and wife are prohibited from donating or selling to each other
during the marriage or entering into a universal partnership;
3) Persons who are prohibited from giving each other any donation or
advantage;
4) Persons holding a fiduciary relation with respect to certain property.

C. Contracts which must appear in a Public Document for Convenience of the

Parties – (See Art. 1358 NCC)

D. Contracts that must comply with the Formalities Prescribed by Law for Validity –

1) Contracts which must be in Writing

a) donations of personal property whose value exceeds P5,000.00;
b) Sale of a piece of land or any interest therein by an agent;
c) Contracts of antichresis;
d) Agreements regarding payment of interest in contracts of loan.

2) Contracts which must appear in Public Document

a) donations of immovable property;
b) partnerships where immovable property or real rights are
contributed to the common fund.

3) Contracts which must be Registered

a) Chattel mortgage
b) Sales or transfers of large cattle

E. Form for Enforceability of contracts –

In the cases of contracts by the Statute of Frauds, the law requires that they
be in writing subscribed by the party charged or by his agent (Art. 1403 [2]). If the
contract is not in writing, the contract is valid if all the essential requisites are present
but it cannot be enforced unless it is ratified.

Sources: Obligations and Contracts, Desiderio Jurado, 2012 edition

Pointers in Bar Examination, Garcia, 2012 edition
The Law on Obligations and Contracts, De Leon 2011 edition
A. Villegas