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III. PARTIES TO THE CONTRACT OF SALE - Coggle Diagram
III. PARTIES TO THE CONTRACT OF SALE
A. CAPACITY OF PARTIES TO ENTER INTO A CONTRACT OF SALE
B. TYPE OF INCAPACITY
C. RULES APPLICABLE TO SPECIFIC SELLERS/BUYERS
MINORS
OLD AGE & SICKNESS
HUSBAND & WIFE
PERSONS DISQUALIFIED TO BUY SPECIFIC PROPERTIES
a.
GUARDIANS
Rule 96 Section 1. To what guardianship shall extend. — A guardian appointed shall have the care and custody of the person of his ward, and the management of his estate, or the manangement of the estate only, as the case may be.
The guardian of the estate of a
non-resident
shall have the management of all the estate of the ward within the Philippines, and
no court other than that in which such guardian was appointed shall have jurisdiction over the guardianship.
b.
AGENTS
Article 1868. By the contract of agency a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. (1709a)
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GUARDIANSHIP:
WHERE INSTITUTED
RTC
JUSTICE OF THE PEACE COURT OF MUNICIPALITY
MUNICIPAL COURT OF THE CHARTERED CITY WHERE THE MINOR/INCOMPETENT PERSONS RESIDES
RTC WHERE HIS PROPERTY/PARTY THEREOF IS SITUATED
IF "HE" (WARD?) RESIDES IN A FOREIGN COUNTRY
Rule 92. Section 1. Where to institute proceedings. — Guardianship of a person or estate of a minor or incompetent may be instituted in the Court of First Instance of the province,
or in the justice of the peace court of the municipality,
or in the municipal court chartered city where the minor or incompetent persons resides, and
if he resides in a foreign country, in the Court of First Instance of the province wherein his property or the party thereof is situated;
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VOID CONTRACTS
Article 1409. The following contracts are inexistent and void from the beginning:
CAUSE CONTRARY TO LMGCPOPP
(1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy;
ABSOLUTELY SIMULATED/FICTITIOUS
(2) Those which are absolutely simulated or fictitious;
CAUSE DID NOT EXIST AT TIME OF TRANSACTION
(3) Those whose cause or object did not exist at the time of the transaction;
OUTSIDE COMMERCE OF MEN
(4) Those whose object is outside the commerce of men;
IMPOSSIBLE SERVICE
(5) Those which contemplate an impossible service;
INTENTION CANNOT BE ASCERTAINED
(6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained;
EXPRESSLY PROHIBITED/DECLARED VOID BY LAW
(7) Those expressly prohibited or declared void by law.
These contracts cannot be ratified. Neither can the right to set up the defense of illegality be waived.
CANNOT ACQUIRE BY PURCHASE:
Article 1491. The following persons cannot acquire by purchase,
even at a public or judicial auction,
either
in person or through the mediation of another
:
GUARDIAN: PROPERTY OF WARD
(1) The guardian, the property of the person or persons who may be under his guardianship;
AGENT: INTRUSTED PROPERTY
-
EXCEPT IF PRINCIPAL CONSENTS
(2) Agents, the property whose administration or sale may have been intrusted to them, unless the consent of the principal has been given;
EXEC/ADMIN: ADMINISTERED PROPERTY
(3) Executors and administrators, the property of the estate under administration;
PUBLIC OFFICERS: STATE'S PROPERTY INTRUSTED FOR ADMINISTRATION BY THEM
(4) Public officers and employees, the property of the State or of any subdivision thereof, or of any government-owned or controlled corporation, or institution, the administration of which has been intrusted to them; this provision shall apply to judges and
government experts who, in any manner whatsoever, take part in the sale
;
OFFICERS CONNECTED W/ ADMIN OF JUSTICE: PROPERTIES LEVIED
(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice,
the property and rights in litigation or levied upon an execution
before the court within whose jurisdiction or territory they exercise their respective functions;
this prohibition includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession;
(6) Any others specially disqualified by law. (1459a)
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VOID CONTRACTS EFFECTS:
CANNOT BE RATIFIED
CANNOT BE WAIVED
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VOID AB INITIO, NOT MERELY VOIDABLE
(Maharlika Publishing v. Tagle)
PUBLIC OFFICERS
ACTUAL FRAUD NOT NECESSARY
. It is not necessary that actual fraud be shown, for a contract which tends to injure the public service is void although the parties entered into it honestly and proceeded under it in good faith.
(Maharlika Publishing v. Tagle)
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a. CONTRACT WITH THIRD PARTIES
b. CONTRACT BETWEEN SPOUSES
c. APPLICABILITY TO COMMON LAW SPOUSES
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VOID CONTRACTS
Article 1409. The following contracts are inexistent and void from the beginning:
CAUSE CONTRARY TO LMGCPOPP
(1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy;
ABSOLUTELY SIMULATED/FICTITIOUS
(2) Those which are absolutely simulated or fictitious;
CAUSE INEXISTENT AT TRANSACTION
(3) Those whose cause or object did not exist at the time of the transaction;
OUTSIDE COMMERCE OF MEN
(4) Those whose object is outside the commerce of men;
IMPOSSIBLE SERVICE
(5) Those which contemplate an impossible service;
INTENTION CANNOT BE ASCERTAINED
(6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained;
EXPRESSLY PROHIBITED/DECLARED VOID BY LAW
(7) Those expressly prohibited or declared void by law.
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COMMUNITY RPOPERTY:
OWNED AT CELEBRATION
FC 91. Unless otherwise provided in this Chapter or in the marriage settlements, the community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter. (197a)
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EITHER SPOUSE MAY EXERCISE ANY
LEGITIMATE PROFESSION
OCCUPATION
BUSINESS
ACVITIY
CONSENT OF THE OTHER NOT NEEDED
FC 73. Either spouse may exercise any legitimate profession, occupation, business or activity without the consent of the other.
ADMINISTRATION & ENJOYMENT OF COMMUNITY PROPERTY:
BOTH SPOUSES JOINTLY
FC 96. The administration and enjoyment of the community property shall belong to both spouses jointly.
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EXCEPTION: OBJECTION ON
VALID, SERIOUS, AND MORAL GROUNDS
The latter may object only on valid, serious, and moral grounds.
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COURTS MUST BE VIGILANT TO PROTECT A PARTY AT A DISADVANTAGE BECAUSE OF:
MORAL DEPENDENCE
IGNORANCE
INDIGENCE
MENTAL WEAKNESS
TENDER AGE
OTHER HANDICAP
Article 24. In all contractual, property or other relations, when one of the parties is at a disadvantage on account of his moral dependence, ignorance, indigence, mental weakness, tender age or other handicap, the courts must be vigilant for his protection.
CANNOT GIVE CONSENT
Article 1327. The following cannot give consent to a contract:
MINORS
-
UNEMANCIPATED
INSANE/DEMENTED
DEAF-MUTE
DON'T KNOW HOW TO READ & WRITE
(1) Unemancipated minors;
(2) Insane or demented persons, and deaf-mutes who do not know how to write. (1263a)
VOIDABLE CONTRACTS
Article 1390. The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties:
INCAPABLE OF GIVING CONSENT
(1) Those where one of the parties is incapable of giving consent to a contract;
FVIUM
(2) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.
NO RESTITUTION:
INCAPACITATED PARTY NOT OBLIGED TO MAKE RESTITUTION
Article 1399. When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any restitution
BENEFIT:
except insofar as he has been benefited
by the thing or price received by him. (1304)
BOTH INCAPABLE OF GIVING CONSENT = UNENFORCEABLE
Article 1403. The following contracts are unenforceable, unless they are ratified:
xxx
(3) Those where both parties are incapable of giving consent to a contract.
UNLESS RATIFIED
BINDING
These contracts are binding, unless they are annulled by a proper action in court.
RATIFIABLE
They are susceptible of ratification. (n)
4 YEARS FROM MAJORITY
if a contract is voidable on the ground of minority, the action to annul it must be filed within four (4) years from attainment of the age of majority. Since Jackie was already 25 years old, the action has clearly prescribed because she should have filed it before she reached the age of 22 (Art. 1391).
SUPPORT DEFINED:
INCLUDES EVERYTHING INDISPENSABLE FOR
SUSTENANCE
DWELLING
CLOTHING
MEDICAL ATTENDANCE
EDUCATION
TRANSPORTATION
FAMILY CODE Art. 194. Support comprises everything indispensable for sustenance, dwelling, clothing, medical attendance, education and transportation, in keeping with the financial capacity of the family.
SUPPORT BEYOND AGE OF MAJORITY
EDUCATION UNTIL COMPLETED
TRAINING FOR SOME PROFESSION, TRADE, VOCATION
The education of the person entitled to be supported referred to in the preceding paragraph shall include his schooling or training for some profession, trade or vocation, even beyond the age of majority.
TRANSPORTATION INCLUDES:
TO AND FROM SCHOOL
TO AND FROM WORK
Transportation shall include expenses in going to and from school, or to and from place of work. (290a)
IN KEEPING WITH FINANCIAL CAPACITY OF THE FAMILY
what's the effect of this?
SPECIFIC SELLERS/BUYERS
MINORS
OLD & SICK
SPOUSES
DQ'ed TO BUY
a.
GUARDIANS
b.
AGENTS
c.
EXEC/ADMIN
d.
PUBLIC OFFICERS
e.
JUDGES
f.
LAWYERS
g.
OTHERS (Aliens)
ABSOLUTE
RELATIVE
RELATIVE: CERTAIN PERSONS/CLASS OF PROPERTY
Incapacity is relative where it exists only with reference to certain persons or a certain class of property
VOID CONTRACTS
A contract entered into by a person suffering relative incapacity may be void.
ABSOLUTE: CANNOT BIND THEMSELVES
Incapacity is absolute in the case of persons who cannot bind themselves.
VOIDABLE CONTRACTS
A contract entered into by someone who has absolute incapacity is voidable.
Minor who represents himself as an adult cannot be considered
PASSIVE
JURIDICAL CAPACITY DEFINED:
FITNESS TO BE THE SUBJECT
Article 37. Juridical capacity, which is the fitness to be the subject of legal relations, is inherent in every natural person and is lost only through death.
ACTIVE
CAPACITY TO ACT DEFINED:
POWER TO DO ACTS WITH LEGAL EFFECTS
Capacity to act, which is the power to do acts with legal effect, is acquired and may be lost. (n)
MERE RESTRICTIONS ON
CAPACITY TO ACT:
MINORITY
INSANITY
IMBECILITY
DEAF-MUTE
PRODIGALITY
CIVIL INTERDICTION
Article 38. Minority, insanity or imbecility, the state of being a deaf-mute, prodigality and civil interdiction are mere restrictions on capacity to act, and do not exempt the incapacitated person from certain obligations, as when the latter arise from his acts or from property relations, such as easements. (32a)
GOVERNED BY NCC, OTHER CODES, RULES OF COURT, AND SPECIAL LAWS:
INSANITY
IMBECILITY
DEAF-MUTE
PENALTY
PRODIGALITY
FAMILY RELATIONS
ALIENAGE
ABSENCE
INSOLVENCY
TRUSTEESHIP
Article 39. The following circumstances, among others, modify or limit capacity to act: age, insanity, imbecility, the state of being a deaf-mute, penalty, prodigality, family relations, alienage, absence, insolvency and trusteeship.
The consequences of these circumstances are governed in this Code, other codes, the Rules of Court, and in special laws.
RELIGIOUS BELIEF OR POLITICAL OPINION DO NOT LIMIT CAPACITY TO ACT
Capacity to act is not limited on account of religious belief or political opinion.
MARRIED WOMAN + 21 YEARS OR OVER:
QUALIFIED FOR ALL ACTS OF CIVIL LIFE
A married woman, twenty-one years of age or over, is qualified for all acts of civil life, except in cases specified by law. (n)
EXCEPT IN CASES SPECIFIED BY LAW
JURIDICAL PERSONS MAY:
ACQUIRE/POSSESS PROPERTIES
INCUR OBLIGATIONS
BRING CIVIL/CRIMINAL ACTIONS
Article 46. Juridical persons may acquire and possess property of all kinds, as well as incur obligations and bring civil or criminal actions, in conformity with the laws and regulations of their organization. (38a)
MUST BE IN CONFORMITY WITH LAWS & REGULATIONS OF THEIR ORG
AUTHORIZED TO OBLIGATE THEMSELVES = MAY ENTER INTO A CONTRACT OF SALE
Article 1489. All persons who are authorized in this Code to obligate themselves, may enter into a contract of sale, saving the modifications contained in the following articles.
NECESSARIES:
WITHOUT CAPACITY TO ACT
STILL PAY NECESSARIES
AT REASONABLE PRICE
Where necessaries are those sold and delivered to a minor or other person without capacity to act, he must pay a reasonable price therefor. Necessaries are those referred to in article 290. (1457a)
SUPPORT DEFINED (SDCM):
EVERYTHING INDISPENSABLE FOR
SUSTENANCE
DWELLING
CLOTHING
MEDICAL ATTENDANCE
Article 290. Support is everything that is indispensable for sustenance, dwelling, clothing and medical attendance, according to the social position of the family.
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IF NOT NECESSARIES?
So if hindi necessaries,
bawal singilin kay totoy?
SAVE FOR EXCEPTIONS UNDER
ART. 1490-1492
HUSBAND AND WIFE CANNOT SELL PROPERTY TO EACH OTHER
Article 1490. The husband and the wife cannot sell property to each other, except:
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DOES NOT EXEMPT FROM CERTAIN OBLIGATIONS
MAY BE LOST
INHERES IN EVERY NATURAL PERSON
LOST ONLY THROUGH DEATH