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Contracts - Chapter 7

This document provides definitions and discusses concepts related to voidable contracts, annulment, and ratification according to Philippine law. It defines voidable contracts as those possessing the essential elements of a valid contract except one party is incapable of consent or consent is impaired. Annulment restores parties to their original positions before a contract. Ratification approves a defective contract, making it binding. The document also outlines requisites for ratification and who can bring an annulment action, and provides examples of rights in various situations involving a minor's sale of property.

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Leinard Agcaoili
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700 views

Contracts - Chapter 7

This document provides definitions and discusses concepts related to voidable contracts, annulment, and ratification according to Philippine law. It defines voidable contracts as those possessing the essential elements of a valid contract except one party is incapable of consent or consent is impaired. Annulment restores parties to their original positions before a contract. Ratification approves a defective contract, making it binding. The document also outlines requisites for ratification and who can bring an annulment action, and provides examples of rights in various situations involving a minor's sale of property.

Uploaded by

Leinard Agcaoili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 7

STUDY GUIDE

I. Definitions
Define or give the meaning of the following:
1. Voidable contract
- Contracts which possess all the essential requisites of a valid contract but one
of the parties is incapable of giving consent, or consent is vitiated by mistake,
violence, intimidation, undue influence, or fraud.
2. Annulment
- It is a remedy provided by law, for reason of public interest for the declaration
of the inefficiency of a contract based on a defect or vice in the consent of one
of the contracting parties in order to restore them to their original position in
which they were before the contract was executed.
3. Ratification
- It means that one voluntarily adopts or approves some defective or
unauthorized act or contract which, without his subsequent approval or
consent, would not be binding on him.
II. Discussions
1. Give the requisites for the ratification of a voidable contract.
- 1) The requisites for implied ratification are the following: a) There must be
knowledge of the reason which renders the contract voidable b) Such reason
must have ceased c) The injured party must have executed an act which
necessarily implies an intention to waive his right. 2) The requisites for
express ratification are the same as those for implied ratification except that
the former is affected expressly.
2. State the rule on the right of strangers to a contract to bring an action for it
annulment.
- Under Article 1397, strangers, therefore, are without right or personality to
bring the action for they are not obliged by the contract, principally or
subsidiarily, unless they can show detriment which would positively result
them from the contract in which they no intervention or participation.
3. Under the law, what contracts are voidable or annullable?
- Under Article 1390, 1) Those where one of the parties is incapable of giving
consent to a contract 2) Those where the consent is vitiated by mistake,
violence, intimidation, undue influence or fraud. These contracts are binding
unless they are annulled by a proper action in court. They are susceptible or
ratification.
III. Problems
Explain or state briefly the rule or reason for your answer.
1. S, a minor, sold a property to B. Later, the sale is annulled on the ground of the
minority of S. Is S bound to return the price received by him?
- Yes, because he is minor but is not obliged to make any restitution. (Article
1399)
2. In the same problem, suppose S, upon reaching the age of majority, decided to
ratify or respect the contract. Has B the right to refuse the ratification and demand
mutual restitution of the property and the price?
- No, because in Article 1395 he has no right to bring the action for annulment.
3. 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?
a. Without the fault of B?
 There is no more obligation to return such thing.
b. Through the fault of B?
 His obligation is not extinguished but is converted into an indemnity
for damages consisting of the value of the thing at the time of the loss
with interest from the same date and the fruits received from the time
the thing was given to him to the time of its loss.

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