Requisites of violence and Intimidation: Article 1345-Article 1346

a. One of the contracting parties is compelled to give his consent by a

reasonable and well-grounded fear of an evil; Simulation of contracts
b. The evil must be imminent and grave; absolute - contracting parties do not intend to be bound by the contract at
c. The evil must be unjust; and all
d. The evil must be the determining cause for the party upon whom it is relative - contracting parties state a false cause in the contract to conceal
employed in entering into the contract. their true agreement.

Character of intimidation - The threat or intimidation must be actual, Effects :

serious and possible of realization. absolute
- simulated contract is void
Determination of degree of intimidation - the age, sex, and condition of -parties may recover from each other what they may have given under the
the person shall be borne in mind. When the evil which threatens is contract
directed not against the contracting party but against his spouse,
descendant or ascendant, we must not only consider the conditions of the relative
contracting party. - binds the parties.
- enforceable between the parties and their successors in interest to their
Effect of just or legal threat - A threat to enforce one's claim of real agreement, when it does not prejudice a third person
competent authority, if the claim is just or legal does not vitiate consent.
Contracts of adhesion - the terms are prepared by only one party while
Article 1337 the other party merely affixes his signature signifying his consent. Such
Undue influence - when a person takes improper advantage of his power contracts as void when the other party is weaker party and have no choice
over the will of another, depriving the latter of a reasonable freedom of but to give consent
choice.
Section 2-Object of Contracts
Undue influence which vitiates consent - The test determine whether Concept of Object-defined as the thing, right or service which is the
or not there is undue influence which will invalidate a contract is to subject matter of the obligation which created or established.
determine whether or not the influence exerted has so overpowered or
subjugated the mind of a contracting party as to destroy his free will Article 1347-Article 1349
What may be the object of contracts - all things or services may the object
Article 1338 of contracts.
Fraud - machinations employed by one of the contracting party in order However, it is essential that the following must concur:
to induce the other to enter contract First, the object should be within the commerce of men,
Second, the object should be real or possible;
Kinds of Fraud Third, the object should be licit; it should not be contrary to law, morals,
a. Dolo insidente - there is pre-existing obligation. good customs, public order or public policy.
b. Dolo causante - fraud employed by securing the consent of the other Fourth, the object should be determinate, or at least, possible of
party. determination, as to its kind.

In order that consent of a party to a contract is vitiated by fraud following Rule with respect to future inheritance - There are several reason in
must be present. this exception, in not allowing contract may be entered into with respect to
Requisites: future inheritance. If the rule were otherwise, there would always be
a. must have been employed by one of the contracting parties; possibility that one of the contracting parties may be tempted to instigate
b. must have been serious; the death of the other in order that the inheritance will become his.
c. must have induced the other party to enter into the contract; and
d. The fraud should not have been employed by both of the contracting Impossible things or services - these are not susceptible to be an object
parties or by third persons. of contract.
Absolute impossibility, arises from the very nature or essence of the act
Article 1339-Article 1340 or service itself, it renders the contract void.
Effect of failure to disclose facts - when there is a duty to reveal them, Relative impossibility, arises from the circumstances or qualifications of
as when the parties are bound by confidential relations, it shall constitute the debtor rendering him incapable of executing the act or service, allows
fraud. However, innocent nondisclosure of a fact when there is no duty to the perfection of the contract, although the fulfillment thereof is hardly
reveal does not constitute fraud probable.

Effect of exaggerations in trade- usual exaggerations in trade, the other Determinability of object - the object must be determinable, or at least
party had opportunity to know the facts, are not in themselves fraudulent. determinable, as to its kind. It simply means that the genus of the object
should be expressed.
Article 1341
Effect of expression of opinion - mere expression of an opinion does Section 3-Cause of contracts
not signify fraud, unless made by an expert and the other party has relied
on the former's knowledge. Article 1350-Article 1351

Article 1342 Concept of cause it is the immediate, direct or most proximate reason
Effect of misrepresentation by third persons - this will not vitiate which explains and justified the creation of an obligation through the will of
consent, unless such misrepresentation has created a substantial mistake the contracting parties.
and the same is mutual.
In onerous contracts, the cause is understood to be the prestation or
promise of a thing or service by the other;
Article 1343-Article 1344 in remuneratory contracts, it is the service or benefit which is
remunerated;
Magnitude of fraud- to vitiate consent, according to Manresa the fraud and in contracts of pure beneficence, it is the liberality of the
must be of serious in character. Minor or common acts of fraud, which benefactor.
could have been easily investigated; neither ordinary deviations which are
almost inseparable and present from ordinary commercial transactions
cannot annul contracts.

Relation between fraud and consent - fraud must be the principal or

causal inducement or consideration for the consent of the party who is
deceived in the sense that he would never have given such consent where
it not for the fraud. This is the fraud which Spanish commentators call
dolo causante.