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Defective Contracts 2024

The document discusses different types of contracts under Philippine law: 1) Rescissible contracts are those that allow one party to rescind or cancel the contract if they suffered significant financial damages. 2) Voidable contracts are valid unless annulled by a court, and can be ratified. They involve situations where consent was not fully given, such as due to incapacity, mistake, or fraud. 3) Unenforceable contracts are not valid unless ratified. They include contracts made without proper authority or that do not comply with statutes of fraud. 4) Void contracts are invalid from the beginning if they violate law, morality, are fictitious, have no real

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34 views

Defective Contracts 2024

The document discusses different types of contracts under Philippine law: 1) Rescissible contracts are those that allow one party to rescind or cancel the contract if they suffered significant financial damages. 2) Voidable contracts are valid unless annulled by a court, and can be ratified. They involve situations where consent was not fully given, such as due to incapacity, mistake, or fraud. 3) Unenforceable contracts are not valid unless ratified. They include contracts made without proper authority or that do not comply with statutes of fraud. 4) Void contracts are invalid from the beginning if they violate law, morality, are fictitious, have no real

Uploaded by

maxinejouellegayon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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RESCISSIBLE CONTRACTS

ARTICLE 1381. The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards whom
they represent suffer lesion by more than one-fourth of the value of the
things which are the object thereof;

(2) Those agreed upon in representation of absentees, if the latter suffer


the lesion stated in the preceding number;

(3) Those undertaken in fraud of creditors when the latter cannot in any
other manner collect the claims due them;

(4) Those which refer to things under litigation if they have been entered
into by the defendant without the knowledge and approval of the litigants
or of competent judicial authority;

(5) All other contracts specially declared by law to be subject to rescission.

VOIDABLE CONTRACTS
ARTICLE 1390. The following contracts are voidable or annullable, even
though there may have been no damage to the contracting parties:

(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 of ratification. (n)
UNENFORCEABLE CONTRACTS
ARTICLE 1403. The following contracts are unenforceable, unless they
are ratified:

(1) 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;

(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:

(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;

(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.

Void or Inexistent Contracts


ARTICLE 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.

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