Chapter 2
Chapter 2
GN: business advertisement of things for sale ART. 1329. The incapacity declared in article
are not definite offers acceptance of which will 1327 is subject to the modifications
perfect a contract but a merely invitations to the determined by law, and is understood to be
reader to make an offer. without prejudice to special disqualifications
established in the laws.
XPN: if the advertisement is complete in all the
particulars necessary in a contract, it may In certain cases their incapacity may be
amount to a definite offer which, if accepted, modified by law, that is, they can also give a
will produce a perfected contract. valid consent;
Prodigal is presumed to have capacity to enter A simple mistake of account shall give rise to it
into contracts. correction.
ART.1333. there is no mistake if the party ART. 1336. Violence or intimidation shall annul
alleging it knew the doubt, contingency or risk the obligation, although it may been employed
affecting the object of the contract. by a third person who did not take part in the
contract.
It is assumed that he was willing to take chances
and cannot therefore claim mistake. ART. 1337. There is undue influence when a
person takes improper advantage of hos power
ART. 1334. Mutual error as to the legal effect of
over the will of another, depriving the latter of
an agreement when the real purpose of the
a reasonable freedom of choice. The following
parties is frustrated may vitiate consent.
circumstances shall be considered: the
Mistake of law- which arises from an ignorance confidential, family, spiritual, and other
some provision of law. relations between the parties, or the fact that
the person alleged to have been unduly
GN: mistake of law does not invalidate consent. influenced was suffering from mental
XPN: when there is a mistake on a doubtful weakness or was ignorant or in financial
question of law, or on the construction or distress.
application of law, this is analogous to a mistake Undue influence- influence of a kind that so
of a fact. overpowers the mind of a party to prevent him
REQUISITES from acting understandingly and voluntarily to
do what he would have done if he had been left
1. Error must be mutual. to exercise freely his own judgement and
2. It must be as to the legal effect of an discretion.
agreement.
3. It must frustrate the real purpose of the The influence must be undue or improper to
parties. avoid a contract.
KINDS OF SIMULATION