LAW
LAW
LAW
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.