Hence there can be no contract if there is no

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Hence, there can be no contract if there is no obligation. But an obligation may exist without a contract (De Leon, 2010). Contract of Adhesion It is a contract in which one of the parties prepares the stipulations in the form of a ready-made contract, which the other party must accept or reject, but not modify, by affixing his signature or his “adhesion” thereto; leaving no room for negotiation and depriving the latter of the opportunity to bargain on equal footing (Norton Resources and Development Corporation v. All Asia Bank Corporation, G.R. No. 162523, November 25, 2009). Dolo Causante v . Dolo Incidente BASIS DOLO CAUSANTE (ART. 1338) DOLO INCIDENTE (ART. 1344) Gravity of Fraud Serious in character Not serious Efficient Cause Efficient cause which induces the party to enter into a contract Not the efficient cause Effect on the Status of the Contract Renders the contract voidable Does not affect the validity of the contract Remedies Annulment with damages Contract remains valid. Remedy is claim for damages Cause v . Motive BASIS CAUSE MOTIVE As to proximate reason in a contract Direct and most proximate reason of a contract. Indirect or remote reasons. As to the kind of reason in the contract Objective and juridical reason of contract. Psychological or purely personal reason. As to the legal effect to the contract Legality or illegality of cause affects the existence or validity of the contract. Legality or illegality of motive does not affect the existence or validity of contract. As to the parties Cause is always the same for each contracting party. Motive differs for each contracting party. As to its knowability Always known May be known to the other
P a g e | 10 JAN BENEDICT M. SAOY DVOREF COLLEGE OF LAW SECOND SEMESTER, SY 2018-2019 FORM OF CONTRACTS Art. 1356. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable. In such cases, the rights of the parties stated in the following article cannot be exercised. Generally, Form Is Not Required In general, form does not matter for the validity of a contract. It is enough that there be consent, subject matter, and cause. This rule applies, however, to CONSENSUAL CONTRACTS. FORMAL CONTRACTS (SOLEMN CONTRACTS) require a certain specified form, in addition to consent, subject matter, and cause. ( Example: A donation of real property must be in a public instrument in order to be valid, even as between the parties.) REAL CONTRACTS require DELIVERY to be valid as a real contract even as between the parties, in addition to consent, subject matter, and cause.

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