2.3 Legal Aspect - Sales, Lease, Motgage

Front 1

The principal sources of law in the Philippines are ___________. (5)

Back 1

1. Constitution

2. Legislation

3. Administrative rules & regulations

4. Judicial decisions

5. Customs

Hint 1

JuCCLA

Front 2

Organization of courts

Back 2

1. Regular CourtsSC, CA, RTC, Metropolitan or Municipal TC, & Municipal Circuit TC

2. Special Courts

Sandiganbayan, Court of Tax Appeals

3. Quasi-juicial agencies

SEC, LTFRB, Constitutional Commission, National Labor Relations Commission, Insurance Commission

Hint 2

ReSQ

Front 3

Different kinds of fruits

Back 3

1. Natural fruits

2. Industrial fruits

3. Civil fruits

Front 4

The creditor may exercise the what remedies or rights in case the debtor fails to comply with his obligation

Back 4

1. Demand specific performance or fulfillment of the obligation with a right to indemnity for damages

2. Demand rescission or cancellation of the obligation also with a right to recover damages

3. Demand payment of damages only, where it is the only feasible remedy

Hint 4

SRP

Front 5

These are the fruits of a thing or additions to or improvements upon a thing

Back 5

Accessions

Front 6

These are things joined to or included with the principal thing for the latter's embellishment, better use or completion.

Back 6

Accessories

Front 7

It is the deliberate or intentional evasion of the normal fullfilment of an obligation.

Back 7

Fraud (deceit or dolo)

Front 8

It is voluntary act or ommission, there being no malice, which prevents the normal fulfillment of an obligation.

Back 8

Negligence (fault or culpa)

Front 9

The failure to perform on an obligation on time which failure constitutes a breach of the obligation.

Back 9

Delay (default or mora)

Front 10

It is the right to enjoy the use and fruits of a thing belonging to another.

Back 10

Usufruct

Front 11

Obligations are extinguished through (6)

Back 11

1. Payment or performance

2. Loss of the thing due

3. Condonation or remission of the debt

4. Confusion or merger of the rights of the creditor and debtor

5. Compensation

6. Novation

ther causes:

Annulment, rescission, fulfillment of resolutory condition, and pr

scription.

Front 12

Special forms of payment (4)

Back 12

1. Dation in payment

2. Application of payments

3. Payment by cession

4. Tender of payment and consignation

Front 13

The conveyance of ownership of a thing as an accepted equivalent of performance

Back 13

Dation in payment

Front 14

It is the assignment or abandonment of all the properties of the debtor for the benefit of his creditors in order that the latter may sell the same and apply to proceeds thereof to the satisfaction of their credits

Back 14

Payment by cession

Front 15

It is a form of donation.

It is the gratuitous abandonment by the creditor of his right against the debtor.

Back 15

Condonation or remission

Front 16

It is the extinction of an obligation through the creation of a new one which substitutes it.

Back 16

Novation

Front 17

It is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

Back 17

Contract

Front 18

Stages in the life of a contract (3)

Back 18

1. Preparation or negotiation

2. Perfection or birth

3. Consummation or termination

Front 19

This is when the parties have come to a definite agreement or meeting of the minds regarding the subject matter and cause of the contract.

Back 19

Perfection or birth

Front 20

This is when the parties have performed their respective obligations and the contract may be said to have been fully accomplished or executed, resulting in the extinguishment or termination thereof.

Back 20

Consummation or termination

Front 21

It manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.

Back 21

Consent

Front 22

The money paid or promised to be paid in consideration for the option.

Back 22

Option money

Front 23

A partial payment of the purchase price and is considered as proof of the perfection of the contract.

Back 23

Option money

Front 24

Persons who cannot give consent (3)

Back 24

1. Unemancipated minors

2. Insane or demented persons

3. Deaf-mutes

Front 25

Temporary period of sanity

Back 25

Lucid interval

Front 26

A contract is voidable where consent is given through mistake, violence, intimidation, undue influence, or fraud.

Back 26

True

Front 27

General: A contract concerning future inheritance is void.

Exceptions (2)

Back 27

1. Donations by reason of marriage between future spouses with respect to their future property to take effect, only in the event of death, to the extent laid down by law in testamentary succession.

2. Partition of poperty by act inter vivos by a person to take effect upon his death.

Front 28

Any damage caused by the fact that the price is unjust or inadequate.

Back 28

Lesion

Front 29

The form of contract is required in the following cases: (3)

Back 29

The law requires that a contract be in some form1. to be valid;

2. to be enforceable or proved in a certain way;

3. for the convenience of the parties or for the purpose of affecting third persons.

Front 30

A stage in the life of a contract that includes all the steps taken by the parties leading to the perfection of the contract. The parties have not yet arrived at any definite agreement.

Back 30

Preparation or negotiation

Front 31

Form for validity of contract (5)

Back 31

1. Donation of real property - must be in public instrument

2. Donation of personal property the value of which exceed P5,000 - donation and acceptance must be in writing

3. Sale of land through an agent - the authority of the agent must be in writing; otherwise, the sale is void

4. Stipulation to pay interest - it must be in writing; otherwise, no interest is due

5. Contract of partnetship - if immovables are contributed, it must be in a public instrument to which shall be attached a signed inventory of the immovable property contributred

Front 32

Form for enforceability of contract (

Back 32

1.

Front 33

Contracts which must appear in a public document (4)

Back 33

1. Creationof real rights over immovable property

2. Cession or renunciation of hereditary rights or those of conjugal partnership of gains

3. Power to administer property

4. Cession of actions or rights

Front 34

The remedy by means of which a written instrument is amended or rectified so as to express or conform to the real agreement or intention of the parties when my reason of mistake, fraud, inequitable conduct, or accident, the instrument fails to express such agreement or intention.

Back 34

Reformation

Front 35

Kinds of defective contracts (4)

Back 35

1. Rescissible contracts

2. Voidable contracts

3. Unenforceable contracts

4. Void or inexistent contracts

Hint 35

VURD

Front 36

Contracts that are validly agreed upon because all the essential elements exist and, therefore,legally effective, but in cases established by law, the remedy of rescission is granted in the interest of equity.

(Reason of economic injury or damage to one of the parties or to third persons)

Back 36

Rescissible contracts

Front 37

Cases of rescissible contracts (5)

Back 37

1. Contracts entered into in behalf of wards

2. Contracts agreed upon in representation of absentees

3. Contracts undertaken in fraud of creditors

4. Contracts which refer to things under litigation

5. Others

Front 38

A person under guardianship by reason of some incapacity.

Back 38

Ward

Front 39

A person who disappears from his domicile his whereabouts being unknown, and without leaving an agent to administer his property.

Back 39

Absentee

Front 40

A remedy granted by law to the contracting parties and sometimes even to third persons in order to secure reparation of damages caused them by a valid contract, by means of thr restoration of things to their condition in which they were prior the celebration of the said contract.

Back 40

Rescission

Front 41

These contracts possess all the essential requisites of a valid conttact but one of the parties is incapable of giving consent, or consent is vitiated by mistake, violence, intimidation, undue influence, or fraud.

They are valid and binding unless annulled by a proper action in court. Once ratified, they become absolutely valid and can no longer be annulled.

Back 41

Voidable or annulable contracts

Front 42

It is a remedy provided by law, for reason of public interest, for the declaration of the inefficacy of a contract based on a defect or vice in consent of 1one of the contracting parties in order to restore them to their original position in which they were before the contract was executed.

Back 42

Annullment

Front 43

A contract is voidable if the defect is caused by either: (2)

Back 43

1. Legal incapacity to give consent, where one of the parties is incapable of giving consent to the contract.

2. Violation of consent where the vitiation is done by mistake, violence, intimidation, undue influence, or fraud.

Front 44

It means that one voluntarily adopts some defective or unathorized act or contract which, without his subsequent approval or consent, would not be binding on him.

It extiguishes the action to annul a avoidable contract.

Back 44

Ratification

Front 45

A contract that cannot be enforced in court or sued upon by reason of certain defects provided by law until and unless they are ratified according to law.

It is applicable only to executory contracts.

Back 45

Unenforceable contract

Front 46

Kinds of unenforceable contracts (3)

Back 46

1. Those entered into in the name of another by one without, or acting in excess of, authority

2. Those that do not comply with the Statute of Frauds

3. Those where both parties are incapable of giving

Front 47

Contracts that generally produce no effect at all because of certain defects.

Back 47

Void contracts

Front 48

It is the act of disposition by the testator in separating from the inheritance for definite purposes, things, rights or a definite portion of his property.

Its purpose is to reward friends, servants and others for services they have rendered, to give alms, etc.

Back 48

Legacy

Front 49

An artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.

Back 49

Corporation