Activity ILLUSTRATION

Activity 1.Illustration.
Illustrate 3 valid contracts identifying the requisites that made the contract valid.
1. Xyrah who was badly in need of money offered to sell her luxurious car worth
₱12,000,000. Upon hearing the offer, Sherryl who is fond of high end cars, immediately
call for a meeting with Xyrah and both parties entered into a contract. During the
meeting, the former proposed that she will instantly wire the money right after signing
the contract if the latter will reduce the price and make it ₱10,000,000. Xyrah willingly
agreed on the said offer which was then stipulated in the contract of sale.
What makes the contract valid?
CONSENT :
Both parties agreed to what is stipulated in the contract. It was free and spontaneous. The
offer and acceptance was certain and is written in the contract.
OBJECT OR SUBJECT MATTER :
 Xyrah - Luxurious Car

 Sherryl- ₱ 10,000,000
CAUSE OR CONSIDERATION :
 Xyrah - ₱ 10,000,000
 Sherryl - Luxurious Car
2. Kathleen, an immigrant in the Philippines, decided to go back to Italy and stay there for
good. She has offered to sell her penthouse in the amount of 20,000,000 pesos to her
collegue Divine which the latter immediately shows interest by scheduling a meeting for
binding a contract tomorrow morning. When morning came, Divine cannot attend the
said meeting due to personal reason however, she called Kathleen through phone call.
Kathleen proposes to Divine that she can pay a downpayment of 10,000,000 by the end
of the month and to pay the remaining amount payable through installments of 1,000,000
pesos for 10 months. Divine, who has been interested in Kathleen’s penthouse and is
financially stable, accepted right away the terms and offer resulting in the existence of a
binding contract of sale.
CONSENT:
The offer is certain and seriously intended and accepted by the offeree. Both parties agreed to
the object and terms stipulated in the contract.
OBJECT OR SUBJECT MATTER:
 Kathleen- high-end penthouse

 Divine - downpayment of 10,000,000 by the end of the month and to pay the
remaining amount payable through installments of 1,000,000 pesos for 10 months
CAUSE OR CONSIDERATION:
 Kathleen- downpayment of 10,000,000 by the end of the month and to pay the
remaining amount payable through installments of 1,000,000 pesos for 10 months
 Divine- high-end penthouse
3. Mr. A offered to sell his Toyota car to Mr. B for a price of P900,000. Mr. B accepted the
offer of Mr. A and paid the price. Mr. A delivered the Toyota car to Mr. B.
CONSENT:
The offer is certain and definite with Mr. A selling his Toyota car and the acceptance of Mr.
B thereof and, the determination of payment is also manifested in the contract with former
giving consent to consideration for the delivery of the car to the latter.
OBJECT OR SUBJECT MATTER:
 Mr. A- his Toyota car

 Mr. B- sum of money of P900,000
CAUSE OR CONSIDERATION:
 Mr. A- delivery of P900,000
 Mr. B- delivery of the Toyota car
Illustrate 2 invalid contracts and discuss what makes the contracts invalid.
1. Sarah a female student who had graduated from senior high school would want to enroll
at LaSalle University and when the registrar asked her what course she would like to
take, she answered: “anything good”. The registrar carelessly receives the form and
inputs her information and details into the system as part of a registered student in the
university.
DISCUSSION:
This is an INVALID CONTRACT because it lacks the essential element that would make
a contract as it is. The object of the contract is not certain, it can only be if it is definite or
determinate as to its kind. However, because it was only mentioned as to anything good,
the university is not certain on what to render as to what it will teach and prepare the
female student for.
2. Jayzam’s grandfather is dying and that he wanted his only grandson to be happily living
with someone for the rest of his life, and if he sees that Jayzam is not anymore lonely he
will then give him his trust fund. Then, Jayzam and Camille who is not known to him had
a contract to live together and be happy for a show without the benefit of marriage this is
to receive a consideration of money worth P1,000,000.
DISCUSSION:
This contract presents essential requisites for it to be a contract yet for it to be a contract
it can only be possible if it is not contrary to law, customs, morals, public order, and
public policy. In the above case, the contract of X and Y is INVALID because living
together without the benefit of marriage is immoral which makes the agreed contract to
be invalid since the object of the contract is contrary to morals.

Activity ILLUSTRATION

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Activity ILLUSTRATION

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Activity 1.Illustration.

What makes the contract valid?

OBJECT OR SUBJECT MATTER :

 Xyrah - Luxurious Car

OBJECT OR SUBJECT MATTER:

 Kathleen- high-end penthouse

What makes the contract valid?

OBJECT OR SUBJECT MATTER:

 Mr. A- his Toyota car

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