STATUTE OF FRAUDS: (Article 1403 par.2)
Q: What are void contracts? A: (Article 1409)
Q: What are the kinds of void contracts?
1) Those lacking in essential elements:
no consent, no object, no cause– essential formalities are not complied with ( ex: donation propter nuptias – should conform to formalities of a donation to be valid )
a. Those w/c are absolutely simulated or fictitious – no cause
b. Those which cause or object did not exist at the time of the transaction – no cause/object
c. Those whose object is outside the commerce of man – no object
d. Those w/c contemplate an impossible service – no object
e. Those w/c intention of parties relative to principal object of the contract cannot be ascertained
2) Contracts prohibited by law
3) Illegal/Illicit contracts Q: What are inexistent contracts?
A: Those which are absolutely simulated or
fictitious or those whose cause or object did not exist at the time of the transaction
Q: What is the Doctrine Pari Delicto?
A: both parties are guilty, no action against each
other; those who come in equity must come with clean hands; applies only to illegal contracts & not to inexistent contracts; does not apply when a superior public policy intervenes
IN PARI DELICTO – not only both are at fault but
that they are equally at fault
Note: GR: When a void contract is such because of
illegality of the cause or the object and both parties are at fault, the law leaves them where they are and will not come to their aid.
XPNS:
1. payment of usurious interest
2. payment of money or delivery of property for an illegal purpose where the party who paid or delivered repudiated the contract before the purpose has been accomplished or before any damage has been caused to a 3rd person
3. payment of money or delivery of property by a party incapable of giving consent 4. agreement or contract which is not illegal
per se but is merely prohibited and the
prohibition is designed for the protection of the plaintiff
5. payment of any amount in excess of the maximum price of any article fixed by law or regulation by competent authority
6. contract whereby a laborer undertakes to work longer than the maximum number of hours fixed by law
7. contract whereby a laborer accepts a wage lower than the minimum wage fixed by law 8. one who lost in gambling because of
fraudulent schemes practiced on him is allowed to recover his losses
CONTRACT and INEXISTENT CONTRACT Void Contract Inexistent Contract
- those where all the requisites of a contract are present, but the cause, object or purpose is CONTRARY TO LAW, MORALS, GOOD CUSTOMS, PUBLIC ORDER or PUBLIC POLICY or the contract itself is PROHIBITED or DECLARED PROHIBITED.
- those where one or some of the requisites which are essential for validity are ABSOLUTELY LACKING.
- Principle of IN PARI
DELICTO is applicable. - Principle of IN PARI DELICTO is NOT applicable.
Q: What are the instances of natural obligations? A: (Art 1423)
1. Performance after the civil obligation has prescribed
2. Reimbursement of a 3rd person for a debt that has prescribed
3. Restitution by minor after annulment of contract
4. Delivery by minor of money or fungible thing in fulfillment of obligation
5. Performance after action to enforce civil obligation has failed
6. Payment by heir of debt exceeding value of property inherited and
7. Payment of legacy after will has been declared void
Q: What is ESTOPPEL?
A: It is a condition or state by virtue of which an
admission or representation is rendered conclusive upon the person making it and cannot be denied or disproved as against the person relying thereon.
1. Estoppel in Pais (by conduct) a. Estoppel by silence
b. Estoppel by acceptance of benefits 2. Technical Estoppel
a. Estoppel by deed b. Estoppel by record 3. Estoppel by judgment 4. Laches
Laches and Prescription
Laches Prescription (1106-1155)
1. concerned with effect of
delay 1. concerned with fact of delay 2. inequity of permitting the
claim to be enforced
2. question of matter of time 3. not statutory 3. statutory
4. applies in equity not based on a fixed time
4. applies at law based on a fixed time
CIVIL LAW NOTES ADVISER: ATTY. CARLA SANTAMARIA- SEÑA
5. not based on a fixed time 5. based on a fixed time
Q: What are the essential elements of laches? A:
1. conduct on the part of the defendant or one under whom he claims, giving rise to the situation complained of
2. delay in asserting the complainant’s right after obtaining knowledge of the conduct of defendant
3. lack of knowledge or notice on the defendant that the complainant would assert his right
4. injury or prejudice to the defendant in the event relief is accorded to the complainant
PARTNERSHIP
Q: What are the requisites of a Partnership? A: I.C.J.
1. intention to create a partnership
2. common fund obtained from contributions 3. joint interest in the profits
Contract of partnership: (B.O.N.C.C.P.P)
1. Bilateral – it is entered into by two or more persons and the rights and obligations arising therefrom are reciprocal;
2. Onerous – each of the parties aspires to procure for himself a benefit through the giving of something;
3. Nominate
4. Consensual – perfected by mere consent. 5. Commutative – the undertaking of each of
the partners is considered as the equivalent of that of the others;
6. Principal 7. Preparatory
Q: What are the formalities needed for its creation? a. personal property
1. < than P3,000.00 – may be oral 2. ≥ P 3,000.00 – must be
• in a public instrument
• registered in SEC
(VALID even if not registered, merely for administration and licensing purposes –Paras) b. real property – must be
• in a public instrument
• with an attached inventory
(VOID as b/w the parties if not complied w/ - Art. 1773)
To be effective against 3rd parties
• partnership must be registered in the Registry of Property of the province where the real property contributed is located
c. limited partnership
• must be registered as such in the SEC
(Otherwise, it’s not valid as a limited partnership)
Q: What are the Rules to determine existence
of partnership?
A:
Q: What are the similarities between a partnership
and a corporation?
A:
Partnership Corporation
1. Both have juridical personality separate and distinct from that of the individuals composing it 2. Both can only act through agents
3.Both are composed of an aggregate of individuals (except corporation sole)
4.Both distribute profits to those who contribute capital to the business (except non-stock, non-profit corporation)
5.Both can only be organized when there is a law authorizing their organization
6. Both are taxable as a corporation
Q: What are the effects of unlawful partnership? A:
1. The contract is void ab initio and the partnership never existed in the eyes of the law 2. The profits shall be confiscated in favor of the government
3. The instruments or tools and proceeds of the crime shall also be forfeited in favor of the government
4. The contributions of the partners shall not be confiscated unless they fall under no. 3
Q: What are the classifications of partnership? A:
1. as to object
a. universal partnership of all present assets b. particular partnership 2. as to liability of partners a. general partnership b. limited partnership 3. as to duration a. partnership at will
b. partnership with a fixed period 4. as to legality of existence
a. de jure partnership b. de facto partnership 5. as to representation to others
a. ordinary or real partnership
b. ostensible or partnership by estoppel 6. as to publicity
a. secret partnership
b. notorious or open partnership 7. as to purpose
a. commercial or trading b. professional or non-trading
Q: What are the kinds of partners?
A: 1. CAPITALIST - contributes money or property
to the common fund.
2. INDUSTRIAL - contributes only his industry or
personal service
3. GENERAL - one whose liability to 3rd persons extends to his separate property
4. LIMITED - one whose liability to 3rd persons is limited to his capital contribution
5. MANAGING - manages the affairs or business of
the partnership
PART-
NERSHIP CO-OWNERSHIP CORPO-RATION