Article 1337

Article 1337

There is undue influence when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice. The following circumstances shall be considered: the confidential, family, spiritual and other relations between the parties, or the fact that the person alleged to have been unduly influenced was suffering from mental weakness, or was ignorant or in financial distress. 

Mayroong labis labis na impluwensiya kapag ang isang tao ay gumagawa ng hindi wastong kalamangan gamit ang kanyang kapangyarihan sa isang tao, na nagdudulot ng pagkakaalis mula sa isang ng kanyang kakayahang mamili nang malaya. 

Ang mga sumusunod na sitwasyon ang maisasaalang-alang: ang confidential, pamilya, espiritwal, at iba pang relasyon sa pagitan ng baway partido, o di kaya ang katotohanan na ang taong labis na naiimpluwensiyahan ay mahina ang pag-iisip, o walang alam, o may matinding pangangailangang pinansyal.

UNDUE INLUENCE

WHAT IT IS:

Undue influence occurs when one party to a transaction is able to influence the decisions of another party to the transaction.

HOW IT WORKS (EXAMPLE):

Anybody who's ever had a pushy girlfriend or boyfriend knows what undue influence feels like. Let's say Raj for whatever reason lands in jail for a night. He calls his girlfriend, Rinrin , to bail him out. She does so only on the condition that Raj signs a contract agreeing to purchase 40% of her pizza parlor business for P100,000. Raj, wanting to get out of jail and not lose Rinrin's affections, signs the contract. He does not do so with reasonable care because he is being pressured by the other party, which happens to have the upper hand over Raj.

Undue influence is often claimed in estate disputes; disappointed heirs often argue that the deceased wrote a will or created a trust under undue influence from a beneficiary of the will or trust.

WHY IT MATTERS:

Undue influence gives one party an advantage over another. In some cases, a party that is the victim of undue influence may be able to void a contract he or she signed while under the effects of that influence.

While in INTIMIDATION there must be an unlawful or unjust act which is threatened and which is consent to be given.

Illustration:

If you will not sell your share of stocks to me I will do harm to your family and to everyone who is close to you.

Here the safety of his family is put at risk if he won't sell his shares, leaving him no choice but to give in to what the other party wants. There is a moral coercion.

Contract of Adhesion - A contract of adhesion, wherein one party imposes a ready-made form of contract on the other, is not strictly against the law. A contract of adhesion is as binding as ordinary contracts, the reason being that the party who adheres to the contract is free to reject it entirely. 

Illustration:

You need to borrow money from a bank. After you fill out many different forms and paperwork, the bank is ready to give you a loan. You receive a loan document which includes your responsibilities and the bank's responsibilities with respect to borrowing the money. 

This document is a standard form and you simply review the material and sign where necessary. This type of contract is called an adhesion contract.

Case Digest

Sweetlines

vs.

Teves

FACTS:

Atty. Leovigildo Tandog and Rogelio Teves bought tickets for Tagbilaran City via the port of Cebu. Since many passengers were bound for Surigao, M/S "Sweet Hope would not be proceeding to Bohol. They went to the proper branch office and was relocated to M/S "Sweet Town" where they were forced to agree "to hide at the cargo section to avoid inspection of the officers of the Philippine Coastguard." and they were exposed to the scorching heat of the sun and the dust coming from the ship's cargo of corn grits and their tickets were not honored so they had to purchase a new one. They sued Sweet Lines for damages and for breach of contract of carriage before the Court of First Instance of Misamis Oriental who dismissed the complaint for improper venue. A motion was premised on the condition printed at the back of the tickets –dismissed instant petition for prohibition for preliminary injunction.

ISSUE: W/N a common carrier engaged in inter-island shipping stipulate thru condition printed at the back of passage tickets to its vessels that any and all actions arising out of the contract of carriage should be filed only in a particular province or city

HELD: NO. petition for prohibition is DISMISSED. Restraining order LIFTED and SET ASIDE. Contract of adhesion is not that kind of a contract where the parties sit down to deliberate, discuss and agree specifically on all its terms, but rather, one which respondents took no part at all in preparing just imposed upon them when they paid for the fare for the freight they wanted to ship.

A: What is a Contract of Adhesion?

Q: It is a ready-made contract that is made by the party whose in power to give the terms & condition, leaving the weaker party to " take it or leave it ".