Discussion On: Voidable Contracts
Discussion On: Voidable Contracts
a. Rhen Escaňo, a minor, sold a property to Cindy Miranda. Later, the sale is annulled on
the ground of minority of Rhen Escaňo. Is Rhen Escaṅo bound to return the price
received by him?
Rhen is bound to return the price he received from Cindy. Rhen is only
obliged to make restitution only to the extent that he was benefited by
the price he received.
Article 1399 states that “when the defect of the contract consists in the
incapacity of one of the parties, the incapacitated person is not obliged to
make any restitution except insofar as he has been benefited by the thing
or price received by him.
b. In the same problem, suppose Rhen Escaňo, upon reaching the age of majority, decided
to ratify or respect the contract. Has Cindy Miranda the right to refuse the ratification
and demand mutual restitution of the property and the price?
Article 1395 states that “ratification does not require the conformity of
the contracting party who has no right to bring the action for annulment.
Cindy has the right to refuse ratification and demand mutual restitution
of the property and the price. Since Rhen agreed to the contract while
being a minor, he waives his rights in case of defects occurring to the
contract. Because of this, Cindy can conveniently disregard the demands
of Rhen to honor the contract even though he reaches the age of
maturity.
c. Again, in the same problem, suppose the sale was annulled by the court, what are the
rights of the parties if the property was lost or destroyed?
Article 1400 states that “whenever the person obliged by the decree of
annulment to return the thing can not do so because it has been lost
though his fault, he shall return the fruits received and the value of the
thing at the time of the loss, with interest from the same date.”
aa. Without the fault of Cindy Miranda?
There is no more obligation to return the thing which is the subject
matter of the contract if the property was lost or destroyed without the
fault of Cindy.
bb. Through the fault of Cindy Miranda?
Her obligation is not extinguished but she is liable for damages if the
property was lost or destroyed through the fault of Cindy. She must pay
damages consisting of the value of the thing at the time of the loss with
interest from the same date.