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HELLO!
I am Jayden Smith
I am here because I love to give presentations.
You can find me at @username
 1.
TRANSITION
HEADLINE
Lets start with the first set of slides
 Quotations are commonly
printed as a means of inspiration
and to invoke philosophical
thoughts from the reader
5 VICES OF CONSENT
Error or mistake (Article 1331)
Violence or force (Article 1335)
Intimidation or threat or duress (Article
1335)
Undue influence (Article 1337); and
Fraud or deceit (Article 1338)
 1.MISTAKE

Mistake or error is the

false belief of a thing or
a fact which is material
to the contract.
TO VITIATE CONSENT, THE MISTAKE
MUST REFER EITHER TO:
1. the substance of the thing which is the
object of the contract; (Article
1333, par. 1)

2. those conditions which have principally

moved one or both parties to enter into
the contract; (Article 1333, par. 1)
TO VITIATE CONSENT, THE MISTAKE
MUST REFER EITHER TO:

3. the identity or qualifications of one of the

parties provided the same was the
principal cause of the contract; (Article
1333, par. 2)

4. an excusable mistake (i.e., a mistake

not caused by the negligence of the party).
BIG
CONCEPT
Bring the attention of your audience over
a key concept using icons or illustrations
May B file an action
for annulment of the
contract of sale B wanted to buy a female pig for breeding in his piggery
because of mistake? business. All his female pigs were already old and barren.
S agreed to sell to B his female pig which was known to
give birth to at least 8 piglets everytime. After S delivered
the pig and B paid the purchase price for it, B brought the
pig to the veterinarian for check-up. The veterinarian,
however, informed B that the pig was already barren. At
the time of the sale, S did not know that the pig was already
barren as it had just given birth to 9 healthy piglets 3
months ago.
May T file an action for
annulment of the T was looking for a place to rent which was near an olympic
contract of lease size pool where his son can train everyday in preparation
because of mistake. for the Olympics. O offered to rent out his townhouse to T
for a monthly rental of P15,000. O told T that there was an
olympic size pool just 200 meters away from his
townhouse. Because of this, T agreed to rent the
townhouse and gave O two months advance rentals.
However, before T and his family could move in to the
townhouse, they discovered that the olympic size pool had
been sold by the previous owner and the new owner would
not allow public use of the pool as before. O was not aware
of this fact.
Can S file an action for
annulment of the
contract of sale
because of mistake as
to the identity of B? S sold his car to B, who he thought
was a lawyer, for P3M. After the
contract of sale was perfected
between the parties, S found out
that B was a doctor.
Can Dennis file an
action for annulment
of the contract of
donation because of Dennis hired a private detective to look for a
half-sister whom he has not seen since he
mistake as to the
was born. The private detectives search
identity of Karen? finally proved successful, and Dennis was
introduced to Karen, the daughter of his
father from another woman. Dennis was so
happy that he donated his car to Karen on
the very same day that they were
introduced. After the DNA results, however,
were released, it was found that Karen was
the wrong woman.
Can Meding file an Tiny lives in a house and lot in Makati which
action for annulment she inherited from her father. On February
of the contract of sale 4, 2011, Tinys Uncle Dagul (brother of his
father) filed an action in court for recovery
on the ground of
of the ownership of the house and lot.
mistake? Dagul states that the house and lot was sold
to him by his brother when he was still alive.
Tiny did not want to believe her uncle. She
had the support of her best friend Meding
who even offered to buy the house and lot
for P5M. Tiny agreed to sell the house and
lot and Meding eventually occupied the
property. Later on, the court hearing the
case rendered judgment declaring Dagul the
rightful owner of the house and lot.
WHO WILL PROVE THERE WAS
MISTAKE OR FRAUD?
GR: he who alleges fraud or mistake must
prove the same.

XPN: Article 1332

: The burden of proof
is on the party
alleging mistake or I want you to refer to Example A in No. 9 above. In that
fraud. case, B filed an action for annulment of the contract of sale
on the ground of mistake because the pig that he bought
was already barren and not fertile as what the seller S
stated. In court, B will be the one to prove the female pig is
no longer fertile. It will not be the duty of S to prove that the
pig is still fertile. If B does not prove the fact of mistake,
even if S does not prove anything, the action for annulment
will be denied and B will be bound by his contract of sale
with S.
The burden of proof
is not on the party
alleging mistake or
fraud but on the
party enforcing the
contract when one of . S is the owner of a 2-hectare farmland planted with 1,000 lanzones
the parties is tress. The farmland makes a P2M annual income on its harvest. S was
unschooled and did not know how to read or write. On February 1, S
illiterate, or is in a needed money for the schooling of his 3 children so he sold the
farmland to B for P3M. The parties signed a Deed of Sale which
language not transferred ownership of the farmland to B. B carefully explained the

understood by him.
contents of the deed to S before S signed the document. There were
two witnesses who were there when the document was signed. After
the children of S learned about
 2.VIOLENCE

Violence makes the

consent of a party
defective when :
(Article 1335, par. 1)
a. ) The consent of the injured party is
obtained by the guilty party by the
employment of serious or irresistible
force.

b.) The violence employed is the reason

why the injured party gave his consent and
perfected a contract with the guilty party. a.
Can S later on file an
action for annulment
of the contract of sale
so he can take back his B is interested in buying the 2-hectare rice
land of S. S, however, refuses to sell his
ownership over the
land. One evening, B, who was with two
property? armed men, went to the house of S. B
forced S to sign a Deed of Sale
transferring ownership of the rice land to B.
Since S refused to sign, he is hit by the butt
of the armed mens guns. As blood was
already flowing from his head, S was forced
to sign the Deed of Sale and B handed him
the purchase price for the rice land.
3. INTIMIDATION OR
THREAT

When is there
intimidation?
There is intimidation when a person is
compelled to give his consent because of
a reasonable and well-grounded fear of an
imminent and grave evil :
a. his person or property; or
b. Upon the person or property of his
spouse, descendants, or ascendants.
 . In the example above in
No. 11, if the two armed
companions of B did not
apply physical force on S but
merely threatened to kill him
by pointing the nozzle of their
guns to the head of S, it
would not be violence but
merely threat or intimidation.
Intimidation exerted upon Still, S can later on file an
the person of the injured action for annulment of the
contract but this time on the
party. ground of intimidation.
 B threatened to burn down the
house of the son of S if S will not
sign the contract of sale
transferring ownership of a parcel
of land to B. S then signs the
Deed of Sale against his will for
fear that B might burn down the
house of his son. Under Article
1335, par. 2, even if it is not the
person or property of the injured
Intimidation exerted upon party himself that is being
threatened, the intimidation
the property of the injured employed by the guilty party will
partys descendant. be enough to make the consent of
the injured party defective.
intimidation or threat must
be of an unjust act, an
actionable wrong. Therefore,
a threat to enforce a just or
legal claim does not vitiate
consent. (Article 1335, par. 4)
Can S later on file an
action for annulment
of the contract of sale
against B on the
ground that he was
merely threatened and B was very much interested in buying a house and lot
owned by S which was located in the heart of Makati. B
intimidated to sell his wanted to convert the property into a restaurant which had
house and lot to B? the motif of the 60s. B knew very well that S was a
crooked businessman. Hence, B threatened S that if S will
not sell the house and lot to him, B will report him to the
BIR authorities. For fear that he will be prosecuted for tax
evasion and ordered to pay millions of back taxes, S sold
the land to B.
Will the action for
annulment filed by S
against B prosper
considering that the B wants to buy the land of S. B thinks that after he develops the
intimidation here was land, the present market value of the land, which is P5,000 per
exerted not by B but square meter, will rise to P50,000 per square meter. N is the
owner of a land next to the land of S. N thinks that he will also
by a third person N become a rich man if S sells the land to B because the valuation
of his property will also increase tremendously. Without the
who was not a party knowledge of B, N went to S and threatened S that if he does not
to the contract of sale sell the land to B, N will kill him. Since S knew that N had many
relatives from the Abu Sayaf, S was forced to sell the land to B.
between S and B? B was, of course, surprised but happy that S had changed his
mind about selling the property. Later on, S filed an action for
annulment of the contract of sale against B on the ground of
intimidation.
UNDUE INFLUENCE
When does undue
influence vitiate
consent? ARTICLE 1337
 Tony has not been able to pay his rentals for two
months worth P12,000. His landlord has
threatened to eject him from the apartment if he
does not pay his overdue rentals in three days.
Tony goes to his friend Gene and tries to borrow
money. Instead of lending him money, Gene
Will Tony be able to convinces Tony to sell to him the grand piano
recover his precious which Tony inherited from his grandfather for
P30,000. Tony sells the piano to Gene because
grand piano from B? he has no one else to turn to for help. Later,
Tony files an action for annulment of the contract
of sale of the grand piano against Gene.
 FRAUD

When is there fraud?

ARTICLE 1338
KINDS OF FRAUD
CAUSAL FRAUD
fraud referred to in Article
1338.
> committed by one party
before or at the time of the
celebration of the contract
to secure the consent of the
other party.
INCIDENTAL FRAUD
fraud referred to in Article
1170.
> employed after the
perfection of the contract.
It is in the manner of
performance of the
obligation that fraud is
employed by the other
party.
ESSENTIAL REQUISITES FOR FRAUD TO VITIATE
CONSENT

1. There must be misrepresentation or

concealment
2. It must be serious [Article 1344]
3. Fraud must have been employed by
only one of the contracting parties
4. Fraud must be made with intent to
deceive the other contracting party.
5. It must have induced the consent of the
other party
2 WAYS OF EMPLOYING FRAUD
MISREPRESENTATION
[ART. 1338]
Guilty party uses
falsehood or misleading
statements to compel the
innocent party to enter into
a contract
CONCEALMENT [ART.1339]
there is an intentional
failure on the part of the
guilty party to reveal to the
innocent party important
facts or details which the
innocent party should have
known in order to be able
to give his intelligent
consent to the contract.
SECOND REQUISITE
SERIOUS FRAUD
Jack sold to Jill a land and
told her that there were
3,000 coconut trees on the
land even if he knew that
there were only 500 trees.
Jill then bought the land
believing the statement of
Jack.
CONCEALMENT [ART.1339]
If Jack told Jill that there
were 3,000 coconut trees on
the land but the truth was
there were really 3,100
coconut trees, the fraud
cannot be considered
serious or important enough
to make the contract
voidable. But Jill has a right
to deduct from the contract
price the amount
representing the value of
the 100 coconut trees.
THIRD REQUISITE
he who comes to court, must come with clean hands.

RULE: Unlike in the case of violence and intimidation, fraud

committed by a third person does not vitiate consent.
Can B file an action B offered to buy the land of S. The actual market
value of the land is only P2,000 per square
for annulment of the meter. F, a friend of B, tells him that the zonal
contract of sale on the valuation for the land is P10,000 per square
ground of fraud meter. So if B can convince S to sell the land
committed by F, a for P6,000 per square meter, it would be a very
good deal. Convinced by the statements of F, B
third person to the bought the land from S for P6,000 per square
contract? meter. Later, B found out from the city hall that
the zonal valuation for the land was only P2,000
per square meter.
 FOURTH REQUISITE

GEN. RULE: there is fraud if made with

intent to deceive

INSTANCES WHERE THERE IS NO

INTENT TO DECEIVE, SO THERE IS
NO FRAUD
1. Article 1340
2. Article 1341
3. Article 1343
 SIMULATION OF
CONTRACT
act of intentionally deceiving
others by producing the
appearance of a contract that
really does not exist (absolute
simulation) or which is different
from the true agreement
(relative simulation).
 2 KINDS OF SIMULATION OF A
CONTRACT
ABSOLUTE SIMULATION
the contract does not
really exist and the parties
do not intend to be bound
at all
Absolutely simulated or
fictitious contracts are
inexistent and void
RELATIVE SIMULATION
contract entered into by the
parties is different from their
true agreement
The parties are bound to the
real or true agreement except
(B.1) if the contract should
prejudice a third person; OR
(B.2) if the purpose is contrary
to law, morals, good customs,
public order, or public policy
A picture is
worth a
thousand
words
A complex idea can be conveyed
with just a single still image,
namely making it possible to
absorb large amounts of data
quickly.
Use charts to explain your ideas

White Gray Black

Our process is easy

FIRST SECOND LAST

Lets review some concepts
Yellow
Is the color of gold, butter
and ripe lemons. In the
spectrum of visible light,
yellow is found between
green and orange.
Yellow
Is the color of gold, butter
and ripe lemons. In the
spectrum of visible light,
yellow is found between
green and orange.
Blue
Is the colour of the clear
sky and the deep sea. It is
located between violet
and green on the optical
spectrum.
Blue
Is the colour of the clear
sky and the deep sea. It is
located between violet
and green on the optical
spectrum.
Red
Is the color of blood, and
because of this it has
historically been
associated with sacrifice,
danger and courage.
Red
Is the color of blood, and
because of this it has
historically been
associated with sacrifice,
danger and courage.
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