Article 1323

Article 1323. An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is conveyed.

---

Artikulo 1323. Ang alok ay mawawalan ng saysay sa pagkamatay, pagbabawal na sibil, pagkasira ng pag-iisip, kawalan ng ibabayad ng partido bago pa man nya tanggapin ang bagay.

---

WHEN OFFER BECOMES INEFFECTIVE

An offer may be withdrawn before it is accepted. After acceptance, the contract is already perfected.

Under Article 1323, even if the offer is not withdrawn, its acceptance will not produce a meeting of the minds in case the offer has already become ineffective because of the death, civil interdiction, insanity, or insolvency of either party before the conveyance of the acceptance to the offeror.

OTHER GROUNDS WHICH RENDER OFFER INEFFECTIVE

The above grounds are not exclusive. Thus, failure to comply with the condition of the offer as to the time, place, and the manner of payment, the expiration of the period fixed in the offer for acceptance, the destruction of the thing due before acceptance, rejection of the offer, etc. will also render then offer ineffective and prevent the juridical tie from being formed.

ILLUSTRATION

Death: Feona offer to sell her beach resort to Shrek for the amount of 1.5 millon pesos but before the day that they are going to meet up for the payment and their contract will be made, Feona died therefore the meeting of the mind of the two parties became ineffective because of the death of Feona.

Civil Interdiction: In the preceding illustration, supposing that Feona was sentenced for life imprisonment because she was found guilty in murder case and there is no acceptance had been conveyed by Shrek before the sale, therefore the offer made by Feona became ineffective because her sentenced carried with civil interdiction.

Insanity: Same as the above illustration if Feona became insane before Shrek accepted her offer the contract became ineffective because an insane person cannot give consent to a contract. 

Insolvency: Also, if Feona was declared by the court as an insolvent person due to her inability or lack of means to pay one’s debt before Shrek accepted the offer therefore the meeting of the minds of the parties is not valid because of the insolvency of the offeror.