DISCUSSION

1. What may be the form of a contract?
2. If the law requires a contract to be in writing, will the contract be invalid if it is not in writing?
3. What is the reason why the law in certain cases permits a written instrument to be reformed or corrected?
4. In what way is reformation of written instrument distinguished from the annulment of a contract?
5. What should be followed in the interpretation of a contract, its terms or the intention of the parties? Explain
6. Suppose a stipulation or word in a written contract is susceptible of various interpretations, what interpretation or meaning should be given to it?
7. State the rule of interpretation where there are various stipulations of a contract.

PROBLEMS

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

1. S (seller) and B (buyer) entered into a contract of sale of a parcel of land. The sale is embodied only in private document and not in a public instrument because it was not acknowledged before a notary public as required by law. Is the sale valid? ( Art. 1358(1) )
2. In the same example, what rights, if any are acquired by the contracting parties? (Art.1357)
3. S sold his horse "X" to B under a written contract of sale. What B thought S was selling him is horse "Y". Can S ask for the reformation of the contract against the objection of B who is agreeable to the sale of horse "X" (Art. 1361)
4. Suppose in the same example, S was intending to sell his horse "Y". Give the three (3) case when he can ask for the reformation of the contract. (Art. 1362,1363,1364)
5. S sold to B his condominium unit "including all its contents." In the unit, there is an antique chair belonging to X which X agreed to sell to S. Is the chair to included in the sale of the unit? (Art.1372)
6. X, architect, designed and supervised the construction of the house of Y. The parties failed to agree beforehand the professional fee of X. How much is Y bound to pay X? (Art. 1371,1376)
7. Suppose in the same problem, the professional fee was agreed upon, but it is not clear from the written contract prepared by X upon the request of Y whether it should be the fixed amount of P 200,000.00 or 6% of the cost of construction. How much is Y liable to pay?(Art.1377)