UNENFORCEABLE CONTRACTS,

VOID/INEXISTENT CONTRACTS
AND NATURAL OBLIGATIONS

SUNKISSED LOLO
UNENFORCEABLE
Article 1403
to
Article 1408

CONTRACTS
ART. 1403
The following contracts are unenforceable, unless they are ratified:

1. Those entered into the name of another person by one who has been
given no authority or legal representation, or who has acted beyond
his powers;
2. Those that do not comply with the Statute of Frauds as set forth in
this number. In the following cases an agreement hereafter made
shall be unenforceable by action, unless the same, or some note or
memorandum thereof, be in writing, and subscribed by the party
charged, or by his agent; evidence, therefore, of the agreement
cannot be received without the writing, or a secondary evidence of
its contents:

ART. 1403
(a) An agreement that by its terms is not to be performed within a year from
the making thereof;

(b) A special promise to answer for the debt, default, or miscarriage of

another;

(c) An agreement made in consideration of marriage, other than a mutual

promise to marry;

ART. 1403
(d) An agreement for the sale of goods, chattels, or things in action, at a
price not less than Five hundred pesos, unless the buyer accept and receive
part of such goods and chattels, or the evidences, or some of them, of such
things in action, or pay at the time some part of the purchase money; but
when a sale is made by auction and entry is made by the auctioneer in his
sales book, at the time of the sale, of the amount and kind of property sold,
terms of sale, price, names of the purchasers and person on whose account
the sale is made, it is a sufficient memorandum;
(e) An agreement for the leasing for a longer period than one year, or for the
sale of real property or of an interest therein;
(f) A representation as to the credit of a third person.

3. Those where both parties are incapable of giving consent to a contract

.
ART. 1403
Unenforceable contracts are those that cannot be enforced in court or sued
upon by reason of defects provided by law until and unless they are ratified
according to law.

Unauthorized contracts are those entered into in the name of another

person by one who has been given no authority or legal representation, or
who has acted beyond his powers.

Statute of Frauds requires that covered transactions must be reduced in

writing, otherwise the same would be unenforceable by action.

REFERENCE
https://lawphil.net/judjuris/juri2019/jul2019/gr_226065_2019.html#:~:text=Article%201
403(2)%20of%20the,would%20be%20unenforceable%20by%20action.
ILLUSTRATION
1. Miles is a salesperson working
for Miguel, and they enter into a
contract to sell a car on behalf of
Miguel to Peter. However, Miles
does not have the authority or legal
representation to act on behalf of
Miguel in such transactions. In
other words, Miles is not
authorized to sell the car on behalf
of the company. As a result, the
contract between Miles and Peter
for the sale of the car would be
considered unenforceable under
Article 1403. Since Miles acted
without proper authority, the
contract lacks the necessary legal
validity.
ILLUSTRATION
2. a.) On December 1, 2022, Gwen
entered into an oral contract with
Hobie for the construction of
Gwen’s house to begin on
December 10, 2022. The contract
must be in writing to be
enforceable. Since the contract
between Gwen and Hobie was oral
and not in writing, it may be
considered unenforceable under
the Statute of Frauds.
ILLUSTRATION
3. Gwen and Miles, who are both
minors and under the legal age of
consent. They decide to enter into
a contract to purchase a piece of
property together. However, due to
their status as minors, they lack
the legal capacity to give consent to
the contract. In this case, the
contract between Gwen and Miles
would fall under Article 1403 of
the Civil Code, rendering it
unenforceable. Since both parties
are incapable of giving consent,
the contract cannot be legally
enforced by either of them.
ART. 1404 Unauthorized contracts are governed by Article 1317 and the
principles of agency in Title X of this Book..

ART. 1405
Contracts infringing the Statute of Frauds, referred to in No. 2 of
Article 1403, are ratified by the failure to object to the presentation of
oral evidence to prove the same,or by the acceptance of benefits under
them.
ART. 1405
Modes of ratification under the Statute.

(1) by failure to object to the presentation of oral evidence

to prove the contract.
(2) by acceptance of benefits under the contract.
ART. 1406
When a contract is enforceable under the Statute of Frauds, and a public
document is necessary for its registration in the Registry of Deeds, the
parties may avail themselves of the right under Article 1357.

For the application of this provision, there must be a valid agreement and
the agreement must not infringe the Statute of Frauds.
(1) Accordingly, a party to an oral sale of real property cannot compel the
other to put the contract in a public document for purposes of registration
because it is unenforceable (Art. 1403[2, e].) unless, of course, it has been
ratified. (Art. 1405.)
(2) Similarly, the right of one party to have the other execute a public
document is not available in a donation of realty when it is in a private
instrument because the donation is void. (Art. 1356.)

ART. 1407
In a contract where both parties are incapable of giving
consent, express or implied ratification by the parent, or
guardian, as the case may be, of one of the contracting parties
shall give the contract the same effect as if only one of them
were incapacitated.
If ratification is made by the parents or guardians, as the case
may be, of both contracting parties, the contract shall be
validated from the inception.

ILLUSTRATION
Superboy’s father, Superman,
becomes aware of the contract
between Superboy and Robin.
Superman, as Superboy’s father
and legal guardian, decides to
ratify the contract. By doing so,
Superman gives the contract the
same effect as if only Superboy
were incapacitated. The contract
becomes enforceable between
Superboy and Robin, and they are
bound by the rights and
obligations outlined in the
contract.
ART. 1408
Unenforceable contracts cannot be assailed
by third persons.

Assail - make a concerted or violent attack on.

ILLUSTRATION

Wanda sells a parcel of land to

Strange. The contract is oral.
Wong binds himself in writing for
the performance by Strange of his
obligation. In an action by Wanda
to recover the purchase price,
Wong cannot assail that the
contract between Wanda and
Strange for being unenforceable
under the Statute of Frauds. Wong
is a stranger to the contract.
VOID AND INEXISTENT
Article 1409
to
Article 1422

CONTRACTS
 ART. 1409
The following contracts are inexistent and void from the beginning:

1. Those whose cause, object or purpose is contrary to law, morals, good

customs, public order or public policy;
2. Those which are absolutely simulated or fictitious;
3. Those whose cause or object did not exist at the time of the transaction;
4. Those whose object is outside the commerce of men;
5. Those which contemplate an impossible service;
6. Those where the intention of the parties relative to the principal object
of the contract cannot be ascertained;
7. Those expressly prohibited or declared void by law.
These contracts cannot be ratified. Neither can the right to set up the
defense of illegality be waived.
 ART. 1409
Void contracts are those which, because of certain defects,
generally produce no effect at all.

Inexistent contracts refer to agreements which lack one or

some or all of the elements (i.e., consent, object, and cause) or
do not comply with the formalities which are essential for the
existence of a contract.
Characteristics of a void or inexistent contract.

They are as follows:

(1) Generally, it produces no effect whatsoever, being void or inexistent from the
beginning;
(2) It cannot be cured or validated either by time or ratification;
(3) The right to set up the defense of illegality, inexistence, or absolute nullity
cannot be waived;
(4) The action or defense for the declaration of its illegality, inexistence, or
absolute nullity does not prescribe;
(5) The defense of illegality, inexistence, or absolute nullity is not available to
third persons whose interests are not directly affected;
(6) It cannot give rise to a valid contract.; and
(7) Its invalidity can be questioned by anyone affected by it.
The above characteristics distinguish a void contract from the other defective
contracts.
ART. 1410
The action or defense for the declaration of the inexistence of a contract
does not prescribe.

Action or defense is imprescriptible

If a contract is void, a party thereto can always bring a court action to
declare it void or inexistent; and a party against whom a void contract is
sought to be enforced, can always raise the defense of nullity, despite the
passage of time.

 ART. 1411
When the nullity proceeds from the illegality of the cause or object of the
contract, and the act constitutes a criminal offense, both parties being in
pari delicto, they shall have no action against each other, and both shall
be prosecuted. Moreover, the provisions of the Penal Code relative to the
disposal of effects or instruments of a crime shall be applicable to the
things or the price of the contract.
This rule shall be applicable when only one of the parties is guilty; but
the innocent one may claim what he has given, and shall not be bound to
comply with his promise. (1305)

 ART. 1411
Rules where contract is illegal and the act constitutes a criminal
offense

(1) Where both parties are in pari delicto:

(a) The parties shall have no action against each other, or as stated in the legal
maxim;
(b) Both shall be prosecuted; and
(c) The things or the price of the contract, as the effects or instruments of the
crime, shall be confiscated in favor of the government.

(2) Where only one party is guilty - If only one party is guilty or both parties
are not equally guilty (in delicto, but not in pari delicto), the rule in paragraph 1
applies only to the guilty party or the more guilty party.
ILLUSTRATION

Green Goblin sold to Harry

contraband articles for P
(1) Where both parties are in pari delicto 10,000.00. Harry paid only
P1,000.00 and Green Goblin did
not deliver all the articles agreed
upon. In this case, neither party
has a right of action against each
other. Both shall be prosecuted
and the price and the articles shall
be confiscated.
ILLUSTRATION

In the previous example, if Harry

was in good faith, he can claim the
(2) Where only one party is guilty return of the price of P 1,000.00; or
if he has not yet paid Green
Goblin, he shall not be bound to
comply with his promise. Green
Goblin shall be prosecuted, and
the contraband articles sold by
him shall be confiscated.
ART. 1412
If the act in which the unlawful or forbidden cause consists does not
constitute a criminal offense, the following rules shall be observed:

(1) When the fault is on the part of both contracting parties, neither
may recover what he has given by virtue of the contract, or demand the
performance of the other’s undertaking;

(2) When only one of the contracting parties is at fault, he cannot

recover what he has given by reason of the contract, or ask for the
fulfillment of what has been promised him. The other, who is not at
fault, may demand the return of what he has given without any
obligation to comply with his promise.

ART. 1412
If the act in which the unlawful or forbidden cause consists does not
constitute a criminal offense, the following rules shall be observed:

(1) When the fault is on the part of both contracting parties,

neither may recover what he has given by virtue of the contract, or
demand the performance of the other’s undertaking;

(2) When only one of the contracting parties is at fault, he cannot

recover what he has given by reason of the contract, or ask for the
fulfillment of what has been promised him. The other, who is not at
fault, may demand the return of what he has given without any
obligation to comply with his promise.

 ILLUSTRATION

Pari Delicto - is a term used to

refer to parties who are equally at
fault with another, where the
cause or object of the contract is
unlawful and forbidden but
without criminal offense

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

Pari Delicto - is a term used to

refer to parties who are equally at
In this case, the promise of Hans
fault with another, where the
has for its consideration an
immoral act which does not cause or object of the contract is
constitute a crime. Hence, there unlawful and forbidden but
can be no recovery by one without criminal offense
against the other or they cannot
ask the fulfillment of others
promise.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1412
If the act in which the unlawful or forbidden cause consists does not
constitute a criminal offense, the following rules shall be observed:

(1) When the fault is on the part of both contracting parties, neither
may recover what he has given by virtue of the contract, or demand
the performance of the other’s undertaking;

(2) When only one of the contracting parties is at fault, he cannot

recover what he has given by reason of the contract, or ask for
the fulfillment of what has been promised him. The other, who is
not at fault, may demand the return of what he has given without
any obligation to comply with his promise.

 ILLUSTRATION

Anna was only a minor (16years old) at the time

of the contract and Hans was a married man of
mature years and experience.
Pari Delicto - is a term used to
refer to parties who are equally at
Hans cannot recover the land given by him nor fault with another, where the
demand the performance of Anna’s undertaking cause or object of the contract is
if the latter has not yet complied with her unlawful and forbidden but
promise. However, Anna may recover whatever without criminal offense
property she may have given by virtue of the
contract without any obligation to comply with
her promise.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1413
Interest paid in excess of the interest allowed by
the usury laws may be recovered by the debtor,
with interest thereon from the date of the
payment.

 TAKE NOTE

Usury - the illegal act of charging

for a loan at a higher rate of
This article basically explains that stipulation
interest than that which is
for the payment of usurious interest is void.
The person paying the usurious interest can allowed by law.
recover in an independent civil action not
only the interest in excess of that allowed by
the usury laws, but the whole interest paid.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1414
When money is paid or property delivered for an
illegal purpose, the contract may be repudiated by one
of the parties before the purpose has been
accomplished, or before any damage has been caused to
a third person. In such case, the courts may, if the
public interest will thus be subserved, allow the party
repudiating the contract to recover the money or
property.

 The following requisites shall be complied with:

A contract that is for an illegal purpose
The contract is repudiated before the
purpose has been accomplished OR before
any damage has caused to a third person
The court considers that public interest will Repudiation - Repudiation of a
be subserved by allowing recovery contract occurs when one party to
the contract demonstrates that it
is unwilling or unable to fulfill its
obligations under that contract.
REQUISITES

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

Repudiation - Repudiation of a
Kali is accused of murder. Blondie contract occurs when one party to
paid ₱10,000 to Frank to hide Kali. the contract demonstrates that it
Before Frank could hide Kali, is unwilling or unable to fulfill its
Blondie changed her mind. The obligations under that contract.
court may allow Blondie to recover
the ₱10,000 given to Frank.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1415
Where one of the parties to an illegal contract
is incapable of giving consent, the courts may,
if the interest of justice so demands, allow
recovery of money or property delivered by
the incapacitated person.

 This article accounts for the exception of Parli

Delicto in Article 1412 because in this article

Recovery can be allowed:

(1) if one of the parties is incapacitated and the
interest of justice so demands. Pari Delicto - is a term used to
refer to parties who are equally at
(2) It is not necessary that fault with another, where the
the illegal purpose has not cause or object of the contract is
TAKE NOTE been accomplished or that
unlawful and forbidden but
without criminal offense
no damage has been
caused to a third person.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

Beabadoobee, an insane but crazy

Pari Delicto - is a term used to
rich person and minor, paid Djo,
refer to parties who are equally at
$1 million dollars to hide Beyonce
fault with another, where the
who is currently accused of cause or object of the contract is
murder. Under Art. 1415, the unlawful and forbidden but
court may allow Beabadoobee to without criminal offense
recover the money paid by her if
the interest of justice so demands.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1416
When the agreement is not illegal per se but
is merely prohibited, and the prohibition by
the law is designed for the protection of the
plaintiff, he may, if public policy is thereby
enhanced, recover what he has paid or
delivered.

 TAKE NOTE

Recovery is permitted provided:

(1) The agreement is not illegal per se but is merely
prohibited;
(2) The prohibition is designed for the protection of
the plaintiff; and
(3) Public policy would be enhanced by allowing the
plaintiff to recover what he has paid or delivered.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

Potchi donated to Tootsie everything that she

(Potchi) possessed and owned, leaving nothing
for herself. This is prohibited but not illegal
per se. Since public policy is hereby enhanced,
Potchie will be allowed to recover, at least that
necessary for her own support and the support
of her relatives.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1417
When the price of any article or commodity
is determined by statute, or by authority of
law, any person paying any amount in
excess of the maximum price allowed may
recover such excess.

 TAKE NOTE

This usually applies to basic needs and during

an emergency or crisis. Prices of can goods,
noodles etc.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

A regulation was promulgated by the

government fixing the maximum price of a
particular brand of rice at 700.00 pesos per
cavan. Simba a buyer paid 1000 pesos per cavan
whether or not he knew the regulation he is
allowed to recover the excess of 300.00 which he
paid for the price of each cavan.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1418
When the law fixes, or authorizes the fixing
of the maximum number of hours of labor,
and a contract is entered into whereby a
laborer undertakes to work longer than the
maximum thus fixed, he may demand
additional compensation for service
rendered beyond the time limit.
 TAKE NOTE

In addition to this Article, The Labor code sets forth

the normal amount of hours of work of any employee
shall not exceed eight hours a day. (Article 1, Section
3, Code of Rules and Regulations to Implement the
Minimum Wage Law, as Amended.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

Nayeon works in Toshiba Company

in Canlubang, Laguna. She works
from Monday to Saturday from
8am to 5pm as the maximum

working hours. However, she works from Monday,

Wednesday, and Friday from 8am to 7pm exceeding two
hours beyond the maximum working hours, making
Nayeon to have the right for compensation.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1419
When the law sets, or authorizes the
setting of a minimum wage for laborers,
and a contract is agreed upon by which
a laborer accepts a lower wage, he shall
be entitled to recover the deficiency.

 TAKE NOTE

In continuation of the preceding article

about labor laws, Article 1419 only
states that laborers who have received
lower than the minimum wage set by
law, can recover the amount deficient
from the pay.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

“A” the owner of a candy factory in Manila executed a contract

with “B” as a laborer. When the pay day comes “B” reacted for
the sum of money that he received because the amount that he
received is only P380.00/day instead of P481.00, therefore “B”
can recover for the deficiency that he received from “A” which
stated on this art. that “When the law sets, or authorizes the
setting of a minimum wage for laborers, and a contract is
agreed upon by which a laborer accepts a lower wage, he shall
be entitled to recover the deficiency.”

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1420
In case of a divisible contract, if the
illegal terms can be separated from the
legal ones, the latter may be enforced.

 TAKE NOTE

Effect of illegality where contract is indivisible or divisible:

When the consideration is entire and single, the contract is

indivisible so that if the part of such consideration is illegal,
the whole contract is void and unenforceable. Where the
contract is divisible or severable, that is, the consideration is
made up of several parts, and the illegal ones can be separated
from the legal portions, the latter may be enforced. This rule,
however, is subject to the contrary intention of the parties.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
 ILLUSTRATION

Indivisible contract:
Javier sold to Pablo his car and shabu, a prohibited drug, for
200k. The contract is wholly void and unenforceable because
there is only one consideration for both the car and the shabu.

Divisible contract:
However, if the price of the car is 150K and if the shabu is 50k,
the contract, being divisible, is valid as to the sale of the car.

REFERENCE
https://jurisdoctor1a.wordpress.com/2019/04/29/chapter-9-void-and-inexistent-contracts/
ART. 1421
The defense of illegality of contracts is
not available to third persons whose
interests are not directly affected.

 TAKE NOTE

Third Persons are not entitled to make an

action to annul or assail a voidable or
unenforceable contract. However, if the
contract is deemed illegal or void, a third
person can avail for defense of illegality or set
up illegality as long as his interest is directly
affected by the contract.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
 ILLUSTRATION

Owen sold his property to his wife

Gwyneth. Under the law, husband, and
wife cannot sell property to each other,
and such sales shall be deemed illegal or
void.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1422
A contract which is the direct result of a
previous illegal contract, is also void and
inexistent.

 ILLUSTRATION

“A contract of repurchase is dependent on the

validity of the contract of sale.”.

If the latter is itself void because the seller is not the

owner, the former is also void because it presupposes
a valid contract of sale between the same parties.
One can repurchase only what he has previously
sold.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
NATURAL
Article 1423
to
Article 1430

OBLIGATIONS
ART. 1423
Obligations are civil or natural. Civil
obligations give a right of action to compel
their performance. Natural obligations, not
being based on positive law but on equity and
natural law, do not grant a right of action to
enforce their performance, but after voluntary
fulfillment by the obligor, they authorize the
retention of what has been delivered or
rendered by reason thereof
 DIFFERENCE OF CIVIL AND
NATURAL OBLIGATIONS
Civil obligations arising from law, contracts, quasi-
contracts, delicts, and quasi-delicts, while natural
obligations are based not on positive law but on equity
and natural law;

Civil obligations give a right of action in courts of

justice to compel their fulfillment or performance,
while natural obligations do not grant such right of
action to enforce their performance
REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1424
When a right to sue upon a civil obligation has
lapsed by extinctive prescription, the obligor
who voluntarily performs the contract cannot
recover what he has delivered or the value of
the service he has rendered.

 TAKE NOTE

By prescription, one acquires ownership

and other real rights through the lapse of
time in the manner and under the
conditions laid down by law. In the same
way, rights and actions are lost by
prescription.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
 ILLUSTRATION

Liam owes Eric P50,000.00 under a

written contract. After 15 years, the
debt of Liam prescribes for failure of
Eric to file the necessary action for the
recovery of the same.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1425
When without the knowledge or against the
will of the debtor, a third person pays a debt
which the obligor is not legally bound to pay
because the action thereon has prescribed, but
the debtor later voluntarily reimburses the
third person, the obligor cannot recover what
he has paid.

 TAKE NOTE

If a third person pays the prescribed debt

of the debtor without his knowledge or
against his will, the latter is not legally
bound to pay him. But the debtor cannot
recover what he has paid, in case he
voluntarily reimburses the third person.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
 ILLUSTRATION

If Arthur pays Eric after the debt has

prescribed without the knowledge or
consent of Liam, but Liam nevertheless
reimburses Arthur, Liam cannot
recover what he has paid.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1426
When a minor between eighteen and twentyone
years of age who has entered into a contract
without the consent of the parent or guardian,
after the annulment of the contract voluntarily
returns the whole thing or price received,
notwithstanding the fact that he has not been
benefited thereby, there is no right to demand
the thing or price thus returned.

 TAKE NOTE

Upon an annulment of a contract, a minor is

not required to make any restitution unless he
has profited in some way from the thing or
price. However, should he voluntarily return
the thing or price received although he has not
been benefited thereby, he cannot recover
what he has returned.
REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
 ILLUSTRATION

Andy, a minor 18 years old, sold his car

to Ray for P100,000.00 without
securing the consent of his parents. He
lost P20,000.00 to a pickpocket
although he was able to deposit the
P80,000.00 in a bank.
REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
 ILLUSTRATION

If the contract is annulled, Andy is

obliged to return only P80,000.00.
However, he has the natural obligation
to return P100,000.00. If he
voluntarily returns the whole amount,
there is no right to demand the same.
REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1427
When a minor between eighteen and twenty-
one years of age, who has entered into a
contract without the consent of the parent or
guardian, voluntarily pays a sum of money or
delivers a fungible thing in fulfillment of the
obligation, there shall be no right to recover the
same from the obligee who has spent or
consumed it in good faith.

 TAKE NOTE

Although Article 1427 speaks of “fungible

thing,” nevertheless it may also apply to things
that are non-consumable when they have been
lost without fault of the obligee or in case of
alienation by him to a third person who did
not act in bad faith.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1428
When, after an action to enforce a civil
obligation has failed, the defendant voluntarily
performs the obligation, he cannot demand the
return of what he has delivered or the payment
of the value of the service he has rendered.
 TAKE NOTE

Considers a situation where a debtor, who

failed to pay his obligation, issued by the
creditor instead of losing the case, he has won
it. The debtor voluntarily performs his
obligation, he cannot demand the return of
what he has delivered or the payment of the
value of the service he has rendered.
REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1429
When a testate or intestate heir voluntarily
pays a debt of the decedent exceeding the value
of the property which he received by will or by
the law of intestacy from the estate of the
deceased, the payment is valid and cannot be
rescinded by the payer

 TAKE NOTE

The heir is not personally liable beyond the

value of the property he received from the
decedent. But if he voluntarily pays the
difference, the payment is valid and cannot be
rescinded by him. An heir has a moral duty to
perform or pay obligations legally contracted
by his dead relatives
REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
ART. 1430
When a will is declared void because it has not
been executed in accordance with the
formalities required by law, but one of the
intestate heirs, after the settlement of the debts
of the deceased, pays a legacy in compliance
with a clause in the defective will, the payment
is effective and irrevocable
 Legacy - the act of disposition by the testator in separating
TAKE NOTE from the inheritance for definite purposes, things, rights, or
a definite portion of his property.

The purpose of a legacy is to reward

friends, servants, and others for services
they have rendered, to give alms, etc. If a
will is disallowed for non-compliance with
the formalities prescribed by law, the
legacy made in the will would also be void.

REFERENCE
https://www.academia.edu/43396598/Obligation_and_Contracts_with_commentary_by_De_Leon
UNENFORCEABLE CONTRACTS,
VOID/INEXISTENT CONTRACTS
AND NATURAL OBLIGATIONS

SUNKISSED LOLO