The persons listed in Article 1327 have not been able to enter into contracts because of their lack of mental capacity. They are deaf-mute, mentally ill or crazy. Acceptance by letter or telegram is binding on the supplier only from the moment he becomes aware of it. In this case, the contract is deemed to have been concluded at the place where the tender was submitted. Essentially, any item agreed as value by both parties can be exchanged in a contract. Nor do these elements need to be of the same nature: land could be exchanged for shares or mining rights for services, provided that both parties agree that the value of the exchange is essentially the same. The only limits to such exchanges are that they cannot be destined for illegal goods, services or other valuables and cannot involve criminal activities. Here are examples of contracts that have been made illegal in this way: The absence or absence of reason means that there is a complete absence of valid consideration for the contract. (see Garanciang v. Garanciang, 28 SCRA 229, 1969.) Lucy doesn`t have to keep the offer open, she could offer it to someone else. However, if Nelli wants Lucy to keep the offer open.

Nelli could offer Lucy an option contract. Under the option agreement, Lucy would keep the offer open for Nelli for a specified period of time. However, Nelli must be considerate of Lucy in order to keep the offer open. Since Lucy is contractually obligated to keep the offer open for Nelli, she cannot make the offer to anyone. Article 1333 There is no error if the party who claims to be aware of the doubt, contingency or risk affecting the subject matter of the contract. Misunderstandings in contract law sometimes lead to conflicts between the parties. These misunderstandings are at the root of many contractual disputes that end up in court. In court, the judge decides whether or not there was a valid contract between the parties. Contracts exist between partners, suppliers and employees.

However, business owners don`t usually keep a lawyer to review every contract they encounter. Understanding the basic details that make a contract valid can help you avoid being in a legal dispute that gets worse in court. However, if Ben can prove that the contract is based on a different consideration, for example if Ben exchanged his car for the land, then the exchange or exchange contract (no sale) is valid. In this case, the price statement is simulated because it is done intentionally. Otherwise, there is indeed a real consideration, but it is not the same as that stated in the contract. For example, Article 1330 lists negatively the different conditions of consent. In addition, Articles 1327, 1328 and 1329 require Contracting Parties to have the necessary legal capacity. (Art.

1327-1329.) The simulation of the contract invalidates the apparent contract. (see art. 1345-1346.) Causal fraud or causative dolo is fraud applied by one party before or at the same time as the creation of the contract in order to obtain the consent of the other party. It is fraud that one party uses to persuade the other party to enter into a contract to which the other party would not have consented, having regard to the circumstances of the case. Fraud must be the one that determines the contract or is the main reason for it. The fraud contemplated in this article and mentioned in article 1330 is a causal fraud involving the use of deception or deception. It must be distinguished from the fraud referred to in Article 1170. We believe that there is no doubt about the purpose of your contract, as it can easily be said that the supply of purified water is the subject of your agreement. Finally, on the part of your neighbor, the cause or consideration for your agreement is the delivery of the purified water, while in turn it is the payment of the amount of thirty pesos (P30.00) for each gallon of water supplied. 3.

It has been used by only one of the Contracting Parties. (Ibid.) Fraud committed by a third party does not affect consent, unless it has been carried out in tolerance or at least to the knowledge of the beneficiary contractual partner (see Art. . . . .