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Contracts 7

The document discusses voidable contracts and their annulment in court. Specifically, it outlines three types of voidable contracts: (1) those where one party cannot consent, (2) those where consent is obtained through mistake, violence, intimidation, undue influence or fraud. These contracts are valid unless annulled in court, and they can be ratified. The document then discusses the process and timeline for annulment actions, as well as the effects of ratification such as curing defects retroactively.

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13 views

Contracts 7

The document discusses voidable contracts and their annulment in court. Specifically, it outlines three types of voidable contracts: (1) those where one party cannot consent, (2) those where consent is obtained through mistake, violence, intimidation, undue influence or fraud. These contracts are valid unless annulled in court, and they can be ratified. The document then discusses the process and timeline for annulment actions, as well as the effects of ratification such as curing defects retroactively.

Uploaded by

ahmadabubakar91903
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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CHAPTER 7

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.

ARTICLE 1391. The action for annulment shall be brought within four years.

This period shall begin:

In cases of intimidation, violence or undue influence, from the time the defect of the consent ceases.

In case of mistake or fraud, from the time of the discovery of the same.

And when the action refers to contracts entered into by minors or other incapacitated persons, from the
time the guardianship ceases.

ARTICLE 1392. Ratification extinguishes the action to annul a voidable contract.

Confirmation, Ratification, Acknowledgment

1. Confirmation - It cures the defect in a voidable contract. (Art. 1396)

2. Ratification-It cures the defect of lack of authority in contracts entered into in behalf of another. (Arts.
1317. 1405)

3. Acknowledgment It remedies a deficiency of proof, ie, orat loan is put in writing: a private instrument
is made a public one,

,ARTICLE 1393. Ratification may be effected expressly or tacitly. It is understood that there is a tacit
ratification if, with knowledge of the reason which renders the contract voidable and such reason having
ceased, the person who has a right to invoke it should execute an act which necessarily implies an
intention to waive his right.

Kinds of Ratification

1. Express-oral or written
2. Tacit-implied ie, act implied as a waiver

ARTICLE 1394. Ratification may be effected by the guardian of the incapacitated person.

ARTICLE 1395. Ratification does not require the conformity of the contracting party who has no right to
bring the action for annulment.

ARTICLE 1396. Ratification cleanses the contract from all its defects from the moment it was constituted.

ARTICLE 1397. The action for the annulment of contracts may be instituted by all who are thereby
obliged principally or subsidiarily. However, persons who are capable cannot allege the incapacity of
those with whom they contracted; nor can those who exerted intimidation, violence, or undue
influence, or employed fraud, or caused mistake base their action upon these flaws of the contract.

ARTICLE 1398. An obligation having been annulled, the contracting parties shall restore to each other
the things which have been the subject matter of the contract, with their fruits, and the price with its
interest, except in cases provided by law.

In obligations to render service, the value thereof shall be the basis for damages.

ARTICLE 1399. 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.

ARTICLE 1400. Whenever the person obliged by the decree of annulment to return the thing can not do
so because it has been lost through 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.

ARTICLE 1401. The action for annulment of contracts shall be extinguished when the thing which is the
object thereof is lost through the fraud or fault of the person who has a right to institute the
proceedings.

If the right of action is based upon the incapacity of any one of the contracting parties, the loss of the
thing shall not be an obstacle to the success of the action, unless said loss took place through the fraud
or fault of the plaintiff.

ARTICLE 1402. As long as one of the contracting parties does not restore what in virtue of the decree of
annulment he is bound to return, the other cannot be compelled to comply with what is incumbent
upon him.

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