ABSOLUTE SIMULATION VS RELATIVE SIM

RELATIVE SIMULATION
both parties try to conceal their real agreement
EX: Person A and B entered contract of sale but both of them signed contract of donation

ABSOLUTE SIMULATION
EX: Person A sold his property to Person B to avoid attachment of property to his creditor person C
but reality there is no contract at all.
(there is actually no contract)

DEFECTIVE CONTRACTS AND THEIR SPECIFI

VALID RESCISSIBLE VOIDABLE

DEFINITION lession: >25% fraud, intimidation…..
Article 1381

EXAMPLE lession: >25% 2 parties:

(1) capacitated
(2) incapacitated

REMEDIES RESCISSION ANNULMENT

PRESCRIPTIVE PERIOD

Intimidation, violence or undue influence

Fraud / mistake
contracts entered by wards or incapacitated persons

CONTRACT OF AGENCY

Authority is oral VOID

Authority is written UNENFORCEABLE

but
Sale is oral

PRIORITY ON DETERMINING WHETHER THERE

Movable Objects party that has the possession

Immovable objects the party that registers first sa Registry of Deeds

DOLO CAUSANTE VS DOLO INCIDE

DOLO CAUSANTE fraud occurred during the process of obtaining the consent
vitiated consent
VOIDABLE CONTRACT subject to annulment

DOLO INCIDENTE fraud occurred during the delivery

incidental fraud
there is a valid contract but dolo occurred during the delivery
buyer is entitled damages

PARI DELICTO

PARI DELICTO both parties niloko nila yung isa't isa

Example Person A purchases sugar from person B. On the time of delivery perso
What is the status of the contracts?

Since both of them act fraudulenty against each other - BOTH ARE THEM

CONSEQUENCES IF BOTH PARTIES ARE IN PARI DELICTO (criminally)

(1) they cannot recover what they have given
(2) they have no right of action to each other
(3) if criminal case - both of them will be criminally prosectured
(4) the instruments will be confiscated in favor of the government

ex die and in diem

EX DIE The period gives BIRTH to the contract

SUSPENSIVE PERIOD

IN DIEM The arrival of period TERMINATES the obligation

RESOLUTORY PERIOD

SUSPENSIVE CONDITION The condition gives BIRTH to the contract

RESOLUTORY CONDITION The arrival of condition TERMINATES the obligation

LATION VS RELATIVE SIMULATION

t of donation could the subject to reformation

o his creditor person C VOID

ACTS AND THEIR SPECIFIC REMEDIES

UNENFORCEABLE VOID
failed to satisfy the formalities
required to make in enforceable
and valid
2 parties:
(1) incapacitated suspensive potensative conditions
(2) incapacitated sale / donation between husband and wife
absolute simulated contracts

RATIFICATION NO REMEDY

RESCRIPTIVE PERIOD
4 years
from the date the defect of consent ceases
from the date of discovery
from the time guardianship or incapacity ceases

NTRACT OF AGENCY

INING WHETHER THERE IS A VALID SALE

 A puchased land from person B. Eventually person B also entered into a contract of sale with person C. Person occupied th

USANTE VS DOLO INCIDENTE

the consent

ng the delivery

PARI DELICTO

he time of delivery person A paid fake money to person B. Also, person B delivered shabu instead of sugar to person A.

h other - BOTH ARE THEM ARE IN PARI DELICTO

ex die and in diem

EXAMPLE EXPLANATION
I will give you my car once my dog dies. Once the dog dies, the debtor is required to deliver his car

I will give you my car once my dog dies from heart attack.

I will lend you my car until you pass the CPA Board exam. the obligation to lend/ deliver the car starts immeddiately
 Article 1381. The following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more

(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding num

(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due th

(4) Those which refer to things under litigation if they have been entered into by the defendant without the kn

(5) All other contracts specially declared by law to be subject

to rescission.

EXACT 1/4 valid

GREATER THAN 1/4 rescissible contract

UNENFORCEABLE VOIDABLE
A incapcitateratify ok
B incapacitated incapacitated
and and wife
person C. Person occupied the land while person C , the second buyer registered the land in the Registry of Deeds. Who has the priorit

to person A.

is required to deliver his car

the car starts immeddiately and terminates once he / she passed the exam.
ent suffer lesion by more than one fourth of the value of the things which are the object thereof;

ated in the preceding number;

er collect the claims due them;

defendant without the knowledge and approval of the litigants or of competent judicial authority;
eeds. Who has the priority claim? Is it A or C? - C beacuse the is the first one to register the propertry sa registry of deeds
gistry of deeds