Elecciones 1998

When a third person induces a person to violate his contract, what liability does the inducer incur?

Mere act of the inducer to violate the contract does not make him liable for damages

It is when a person in bad faith induces another to violate his contract that makes him liable for damages

In the absence of bad faith, the inducer cannot be made liable for damages If liable, how will you determine the liability considering he is not a party to the contract?

Geo W. DAYWALT vs. La Corporacion De Los Padres Agustinos Recoletos, et.al (1919) Court said, whenever an inducement is made in bad faith, the liability of the inducer can never be more than the liability of the one who violates the contract

Measure is the liability of the party who actually violates the contract

From the standpoint of Perfection, contracts are classified in 2 Kinds 1. Consensual

Perfected by mere consent 2. Real

Perfected by the delivery of the object

A contract has 3 Essential Elements to be valid. Consent. Object. Cause. (COC) What is Policitation?

In English, Imperfect Contract, refers to an offer that has never been accepted. It can never give rise to a contract

Of the 3 essential elements of a contract, number 1 is Consent, the law does not give a definition of consent, what the law provides is how consent is manifested

Article 1319. Consent is manifested by the meeting of the offer and the

acceptance upon the things and the cause which are to constitute the contract. The offer must be absolute. A qualified acceptance constitute a counter-offer.

On the basis of that provision, Consent has 2 Elements 1. Offer

2. Acceptance

What are the requisites?

Once an offer is made, may it be withdrawn?

As long as the offer has not yet been accepted, it can be withdrawn at anytime Suppose the offeror in making an offer gives the offeree an option period within which to accept or reject the offer, can the offer be withdrawn?

Mere grant of an option does not preclude the offeror from withdrawing the offer, no liability will attach, unless the withdrawal is made arbitrarily or in abuse of rights

If an offeree wants to make sure that the offer is not withdrawn within the option period?

He must give a separate consideration for the grant of option period What do you call that consideration?

Option Money

How much should it be to be valid?

There is no law that fixes the amount, it all depends upon the agreement of the parties

What is the effect of giving an option money?

It gives rise to the creation of an OPTION CONTRACT

Not a principal contract, only a preparatory contract, preparatory to the principal contract

For whose benefit is an Option Contract?

Always for the benefit of the offeree and never the offeror. Why?

Because the option of whether to proceed with the principal contract or not is given to the offeree.

While the offeree can compel the offeror to proceed with the principal contract, the converse is not true

The option is not given to the offeror, it is always given to the offeree What is the effect of giving an option money?

1. Gives rise to an Option Contract

2. The option is given to the offeree and never to the offeror

3. As long as the option period has not yet expired, the offeror cannot withdraw his offer

Suppose an option contract is created by the grant of an option money, and the principal contract does not push through, may it be recovered?

NEVER. Even if the parties agreed that it is refundable, it will not be valid (the agreement)

Because it is in consideration of the option contract Is it the same as Earnest Money?

No. It is always part of the purchase price.

Purpose is to show that the person is earnest in buying Any amount as agreed upon

But unlike option money, earnest money is refundable if agreed upon by the parties

If an offer is made but is not accepted, IMPERFECT CONTRACT.

If an offer can be withdrawn in accordance with the rule, how about an acceptance?

Remember, acceptance is one of the elements of consent

An acceptance to be valid must always be clear, never should it vary the offer, the moment it deviates from the offer, no matter how significant, that is not valid.

A qualified acceptance is not a valid consent Because there is no meeting of the minds

It is said, the law said, under paragraph 2 Article 1319, if an acceptance is made either by letter or telegram, not between persons who are face to face with each other, the acceptance will not bind the offeror unless the acceptance comes to the knowledge of the offeror

Then immediately, the offeror can learn of the acceptance Can take place even if persons are not face-to-face

What is the effect of withdrawal of an acceptance?

As long as withdrawal was made before acceptance has come to the knowledge of the offeror, there is no consent

What about the crossing of the acceptance and withdrawal? Laudico vs. Arias

28 February 2012 Who cannot give consent to a contract?