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    Chapter 2

    Uploaded by

    Lenny Ramos Villafuerte
    This document contains 5 legal problems and their corresponding answers. 1. Explains when an offerer is not allowed to withdraw an offer during an option period according to contract law. 2. States that a seller can legally withdraw from a contract if they sold their house believing the buyer was a different person, due to mistake of identity. 3. Indicates that a buyer can ask to annul a contract if the seller deliberately misrepresented the quantity delivered, which is considered fraud. 4. Discusses that usual trade exaggerations about future value are not considered fraudulent if the other party had opportunity to know the facts. 5. Notes that a contract would not be annulled if

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    Chapter 2

    Uploaded by

    Lenny Ramos Villafuerte
    3K views2 pages
    This document contains 5 legal problems and their corresponding answers. 1. Explains when an offerer is not allowed to withdraw an offer during an option period according to contract law. 2. States that a seller can legally withdraw from a contract if they sold their house believing the buyer was a different person, due to mistake of identity. 3. Indicates that a buyer can ask to annul a contract if the seller deliberately misrepresented the quantity delivered, which is considered fraud. 4. Discusses that usual trade exaggerations about future value are not considered fraudulent if the other party had opportunity to know the facts. 5. Notes that a contract would not be annulled if

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    This document contains 5 legal problems and their corresponding answers. 1. Explains when an offerer is not allowed to withdraw an offer during an option period according to contract law. 2. States that a seller can legally withdraw from a contract if they sold their house believing the buyer was a different person, due to mistake of identity. 3. Indicates that a buyer can ask to annul a contract if the seller deliberately misrepresented the quantity delivered, which is considered fraud. 4. Discusses that usual trade exaggerations about future value are not considered fraudulent if the other party had opportunity to know the facts. 5. Notes that a contract would not be annulled if

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views2 pages

    Chapter 2

    Uploaded by

    Lenny Ramos Villafuerte
    This document contains 5 legal problems and their corresponding answers. 1. Explains when an offerer is not allowed to withdraw an offer during an option period according to contract law. 2. States that a seller can legally withdraw from a contract if they sold their house believing the buyer was a different person, due to mistake of identity. 3. Indicates that a buyer can ask to annul a contract if the seller deliberately misrepresented the quantity delivered, which is considered fraud. 4. Discusses that usual trade exaggerations about future value are not considered fraudulent if the other party had opportunity to know the facts. 5. Notes that a contract would not be annulled if

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    III.

    Problems

    Explain or state briefly the rule or reason for your answer.

    1. In a contract containing an option period, when is the offerer not allowed to


    withdraw his offer even before acceptance by the offeree? When is the offerer
    allowed ti withdraw his offer even after acceptance?

    2. S sold his house to B believing that B was C. Can S legally withdraw from the
    contract on the ground of mistake?

    3. S agreed to deliver to B 500 cavans of rice at P600 per cavan. S delivered only
    490 cavans deliberately misrepresenting that the delivery consisted of 500 cavans.
    Can B ask the court to annul the contract on the ground of fraud?

    4. S sold to B a commercial land for P1,000,000, S assured B that it is certain that


    in two years time, the land would increase in market value by 50% or P1,500,000.
    It turned out that the market value of the land even decreased to about P800,000. Is
    S liable to b for misrepresentation?

    5. Suppose in the same problem, what S sold to B, hardware owner, are 500 bags
    of cement. S had every reason to believe that the price of cement would go down.
    After two weeks, it did go down. Has B the right to have the sale annulled?

    ANSWERS:

    1. In this problem, according to Article 1314 and to Article 1479. When the offer
    has allowed the offeree a certain period to accept, the offer may be withdrawn at
    any time before acceptance by communicating such withdrawal, except when the
    option is founded upon consideration, as something paid or promised. A unilateral
    promise to buy or sell a determinate thing not supported by any consideration
    distinct from the price for which that thing was intended to be held by or to the
    promise (offeree) does not bind the promiser, even if accepted, may be withdrawn
    at any time.

    2. S can legally withdraw from the contract on the ground of mistake because
    under Article 1331, In order that mistake may invalidate consent, it should refer to
    the substance of the thing which is the object of the contract, or to those conditions
    which have principally moved one or both parties to enter into the contract.
    Mistake as to the identity or quality of one of the parties will vitiate consent only
    when such identity or qualifications have been the principal cause of the contract.
    A simple mistake of account shall give rise to the correction.

    3. B can ask the court to annul the contract on the ground of fraud because this
    situation is a representation of Causal Fraud (fraud used by a party to induce the
    other to enter into a contract without which the latter would not have agreed to,
    taking into account the circumstances of the case) or fraud employed to secure the
    consent of the other party, which is a ground for the annulment of a contract
    although it may give rise to an action for damages.

    4. Under Article 1340, The usual exaggerations in trade, when the other party had
    an opportunity to know the facts, are not in themselves fraudulent. The article
    refers to the usual exaggerations in trade which are not fraudulent by themselves
    when the party has the opportunity to investigate and know the true facts.

    5. Inthe problem, even if S intentionally did not say to B that the price of the
    cement would go down after 2 weeks, the contract would not be annulled because
    S do not have duty to reveal that the cement price would go down, thus they must
    follow the rules bounded by the contract. The responsibility must go to B to know
    the trend of pricing of the cement to have a better contract price. Therefore it is a
    no, because according to Article 1339. Failure to disclose facts, when there is a
    duty to reveal them, as when the parties are bound by confidential relations,
    constitutes fraud.

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