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1344 c tolerated fraud includes minimizing the

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Unformatted text preview: trine on reluctant consent provides that a contract is still valid even if one of the parties entered it against his wishes or even against his better judgment. Contracts are also valid even though they are entered into by one of the parties without hope of advantage or profit. FRAUD • thru insidious words or machinations of contracting parties, other is induced to enter into contract w/o w/c he will not enter (dolo causante) KINDS OF FRAUD IN THE PERFORMANCE OF OBLIGATION OR CONTRACTS a. Causal Fraud (dolo causante) – deception of serious charcter without which the other party QuickTime™ and a would TIFF (Uncompressed) decompressor into; contract is not have entered are (Art. see this picture. VOIDABLE needed to1338) b. Incidental Fraud (dolo incidente) – deception which are not serious and without which the other party would still have entered into the contract; holds the guilty party liable for DAMAGES (Art. 1344) c. Tolerated Fraud – includes minimizing the defects of the thing, exaggeration of its god • • • qualities and giving it qualities it does not have; LAWFUL misrepresentation NOTE: Expression of an opinion – not fraud unless made by expert and other party relied on the former’s special knowledge Fraud by third person – does not vitiate consent; only action for damages except if there is collusion between one party and the third person, or resulted to substantial mistake, mutual between parties. CAUSES OF EXTINCTION OF ACTION TO ANNUL a. PRESCRIPTION - Period to bring an action for Annulment i. Intimidation, violence, undue influence 4 years from time defect of consent ceases ii. Mistake, fraud – 4 years from time of discovery iii. Incapacity - From time guardianship ceases Carantes vs. CA, 76 SCRA 514, discovery of fraud must be reckoned to have taken place from the time the document was registered in the office of the register of deeds. Registration constitutes constructive notice to the whole world b. RATIFICATION • REQUISITES i. knowledge of reason rendering contract voidable ii. such reason must have ceased, except i...
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This document was uploaded on 02/18/2014 for the course ACC 2001 at Alabama Christian Academy.

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