The Vice is Right

1. Error or Mistake (already discussed)

A. Violence and Intimidation (Art. 1335)

1st word clue: involves physical force
2nd word clue: involves a reasonable and well-grounded fear of imminent and grave evil
External : Violence = Internal: Intimidation
Violence: Requisites:
o Serious or Irresistible
Intimidation: Requisites:
o Reasonable and well-grounded fear of an evil
o Imminent and grave evil
o Evil upon person, property or others
o Reason for entering into the contract
Intimidation: Degree: Factors
o Circumstances
o Age
o Sex
o Condition
Threat to enforce legal claim (to sue)
o VALID
Violence or Intimidation employed by a 3rd person: contract is VOIDABLE as long as it
has all the requisites

B. Simulation
clue: it is the agreement between two or more persons to give one thing the appearance
of another
Absolute Stimulation:
o Agreement made between two parties to deceive third persons to gain any
benefits as if there was a genuine and true underlying agreement between
the two parties
o Contract does not really exist and the parties do not intend to be bound at all
o Contract is VOID
Relative Stimulation
o Contract entered into by the parties is different from their real agreement
o Agreement concluded between the parties with the intention to conceal the
real agreement
o Binding to the REAL agreement of the parties

C. Undue Influence
clue: improper advantage of power to deprive another his freedom of choice
There is coercive persuasion beyond giving friendly advice
Persuasion must amount to excessive pressure that affects a persons freedom of
choice to lead to undue influence
Abuse of the victims trust and confidence
Circumstances:
o Relationship between the parties i.e. husband-wife, doctor-patient
o Mental Weakness i.e. Dementia, traumatic experiences like death of a loved
one
o Ignorance
 o Financial Distress

D. Fraud (Causal)
Clue: Through the insidious words or machinations of one party, the other is induced to
enter into a contract
Incidental Fraud:
o Committed in the performance of the Obligation
o Leads only to liability for damages
Causal Fraud:
o Employed in the execution of the contract
o makes the contract voidable
Requisites to Make a contract voidable in the grounds of Causal Fraud:
o Misrepresentation or concealment of material fact
o Serious
o Employed by only ONE of the contracting parties and the other must not know
If made by BOTH parties, the fraud of one neutralizes the fraud of the
other, making the contract valid
o Bad Faith
If done in good faith, it constitutes to error or mistake
o Induced the consent of the other contracting party
o Alleged and Proved by clear and convincing evidence
Concealment:
o Intentional failure to reveal information which someone knows and is aware
that in good faith he/she SHOULD communicate to another.
Exaggerations in Trade (Puffery):
o NOT FRAUDULENT when the other party had an opportunity to know the facts
Expression of an Opinion:
o Does NOT make a contract voidable
o Exception:
Made by an expert
The other contracting party RELIED on the experts opinion
Experts Opinion is false
Third Person:
o Misrepresentation: not fraudulent
o Exception:
Substantial Mistake
Affects both parties
If one of the parties is in connivance with the 3 rd person, it is as
if fraud has been committed by such party