What is the status of a contract entered into during a state of drunkenness?

Contract entered into a state of drunkenness or during a hypnotic spell is

A. Void

B. Valid

C. Rescissible

D. Voidable

ANSWER: D

FIRST: Simulation of a contract can only be relative.

SECOND: Intimidation involves the employment of serious or irresistible force

to obtain consent.

A. Only the FIRST is true.

B. Only the SECOND is true.

C. Both are true.

D. Both are false.

ANSWER: D

FIRST: A contract entered into by an insane person during a lucid interval is

valid.

SECOND: Lucid interval is a permanent period of sanity.

A. Only the FIRST is true.

B. Only the SECOND is true.

C. Both are true.

D. Both are false.

ANSWER: A

James and Jack entered into a contract whereby James sold his car to Jack for

P100,000. Base on the foregoing, which of the following statements is

incorrect?

A. The contract is rescissible if the time of the sale, the car was a subject

of litigation brought by Brent against James to recover the car, and the

court and Brent did not give their authority to the sale.

B. The contract is unenforceable if James is 17 and Jack is insane.

C. The contract is voidable if James is 17 years old and Jack is 25 years

old.

D. The contract is void if Jack a 25 - year old, compelled James a thirty –

year old to sign a deed of sale by threatening to burn the house of

James.

ANSWER: D

Roy and John are bound into a contract stating that Roy is obliged to deliver

15 bags of flour to John 5 days after the execution of their agreement. On

due date, Roy delivered to John 5 bags of flour with the mixture of chalk in it.

A. The contract is void because of the fraud employed by Roy in the

performance of his obligation.

The incapacity declared in Article 1327 is subject to the modifications determined by law, and is understood to be without prejudice to special disqualifications established in the laws. (1264)

Ang kawalang-kakayahan na nakasaad sa Article 1327 ay sumasailalim sa pagbabagong naayos sa batas, at naiiintindihang hindi makakasama sa espesyal na mga diskwalipikasyong tinatag ng mga batas.

Discussion:

The persons enumerated under Article 1327 incapacitated to give consent to contracts due to their lack of mental capacity to do so.  They are either deaf-mutes, insane or demented.

On the other hand, the special disqualifications mentioned in Article 1329 refer to those explicitly disqualified by law from entering certain contracts:

1. Persons enumerated in Article 1491 due to fiduciary relationship or dur to public policy;
2. Husband and wife cannot enter into contract of donation, sale or lease with each other because they are not allowed to donate, sell or lease properties to one another.  This includes those who live as husband and wife without the benefit of marriage;
3. Insolvents until they are discharged;
4. Non-Christians inhabitants of Mindanao and Sulu cannot enter into contract involving real estate without the approval of the chairman of the Commission on National Integration.

Incompetents who may be placed under judicial guardianship (under Rule 92, Section 2 of the Revised Rules of Court):

1. those suffering the penalty of civil interdiction;
2. hospitalized lepers;
3. prodigals;
4. deaf and dumb who are unable to read and write;
5. those of unsound mind even though they have lucid intervals;
6. those who by reason of age, disease, weak mind, and other similar causes, cannot without outside aid, take care of themselves and manage their property, becoming thereby an easy prey for deceit and exploitation.

Incapacity to give consent to contracts and special disqualifications distinguished:

Those who are incapacitated to give consent to contracts are not prohibited to to exercise their right to enter into a contract.  They can still do so through a guardian with the approval of the court.

Those who are specially discqualified are prohibited whether or not they have representation.  They are absolutely disqualified from entering into a contract.

What is the status of a contract agreed to in a state of drunkenness or during a hypnotic spell?

What are the consequences of a contract entered into by an insane person?