Subj: Law of Obligation and Contracts

I. Definition Define or give the meaning of the following: 1. Consent 2. Acceptance 3. Natural elements 4. Option contract 5. Mistake of law II. Discussions 1. When is a contract voidable or annullable? 2. Is it always required that he who alleges fraud or mistake in entering into a contract, must prove his allegation? Explain. 3. Give the requisites in order that intimidation may vitiate or annual consent of a party to a contract. 4. May fraud be commuted by a party to a contract tough there is no misrepresentation on his part? Explain. 5. Will the acceptance of a business of a business advertisement of thing for sale procedure the perfection of a contract? Explain. III. Problems Explain or state briefly the rule or reason for your answer. 1. In a contract containing an option period, when is the offer not allowed to withdraw his offer even before acceptance by the offeree? When is the offerer allowed to 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 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 t 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?