Page 55 - Obligations & Contracts Module 1-2

Law requires Contract to be in some “form” for convenience

– (contract is valid and enforceable, needed only to bind 3rd parties)

- ex: public documents needed for the following:

1. contracts w/c object is creation, transmission/reformation of real rights over immovable

2. cession, repudiation, renunciation of hereditary rights/CPG

3. power to administer property for another

4. cession of action of rights proceeding from an act appearing in a public

5. all other docs where amount involved is in excess of P500

( must be written even private docs )

*REFORMATION OF CONTRACTS – remedy to conform to real intention of parties due to

mistake, fraud, inequitable conduct, accident

*CAUSES / GROUNDS FOR REFORMATION :

a. Mutual: instrument includes something w/c should not be there or omit what should be there:

mutual

mistake of fact

clear & convincing proof

causes failure of instrument to express true intention

b. Unilateral :

one party was mistaken

other either acted fraudulently or inequitably or knew but concealed

party in good faith may ask for reformation