CHAPTER II

DECLARATION OF INTENTION

Section 154.- A declaration of intention is not void on the ground that the declaring in the recesses of his mind does not intend to be bound by his expressed intention, unless this hidden intention was known to the other party.

 

Section 155.- A declaration of intention made with the connivance of the other party which is fictitious is void, but its invalidity cannot be set up against third persons injured by the fictitious declaration of intention and acting in good faith.

If a declaration of fictitious intention under paragraph one is made to conceal another juristic act, the provisions of law relating to the concealed act shall apply.

 

Section 156.- A declaration of intention is void if made under a mistake as to an essential element of the juristic act.

The mistake as to an essential element of the juristic act under paragraph one are for instance a mistake as to a character of the juristic act, a mistake as to a person to be a partner of the juristic act and a mistake as to a property being an object of the juristic act.

 

Section 157.- A declaration of intention is voidable if made under a mistake as to a quality of the person.

The mistake under paragraph one must be a mistake as to the quality of the person which is considered as essential in the ordinary dealings, and without which such juristic act would not have been made.

 

Section 158.- If the mistake under Section 156 or Section 157 was due to the gross negligence of person making such declaration, he cannot avail of such invalidity.

 

Section 159.- A declaration of intention procured by fraud is voidable.

An act under paragraph one is voidable on account of fraud only when it is such that without which such juristic act would not have been made.

When a party has made a declaration of intention owing to a fraud committed by a third person, the act is voidable only if the other party knew or ought to have known of the fraud.

 

Section 160.- The avoidance of a declaration of intention procured by fraud cannot be set up against a third person acting in good faith.

 

Section 161.- If the fraud is only incidental that is to say it has merely induced a party to accept more onerous terms that he would otherwise have done, such party can only claim compensation for damage resulting from such fraud.

 

Section 162.- In bilateral juristic acts, the intentional silence of one of the parties in respect to a fact or quality of which the other party is ignorant, is deemed to be a fraud if it is proved that, without it, the act would not have been made.