VOID OR

INEXISTENT
CONTRACTS
CHAPTER 9 I OBLIGATION AND
CONTRACTS
VOID CONTRACTS

Void Contracts are those, which,

because of certain defects, generally
produce no effect at all. They are
considered as inexistent from its
inception or from the very beginning.
SPECIAL CLASSIFICATIONS OF VOID CONTRACTS
INEXISTENT CONTRACTS
Refers to agreements which lack one or some of all the elements
or do not comply with the formalities which are essential for the
existence of the contract (formal contracts).

ILLEGAL OR ILLICIT CONTRACTS

An illegal contract may produce effects under certain
circumstances where the parties are not equal of guilt.
DISTINGUISGING VOID CONTRACTS FROM VOIDABLE
CONTRACTS

VOIDABLE VOID

May be rattified Cannot be ratified

Produces no effects until Generally, effects are not

annulled produced at all.

The defect here is that

Defect is due to incapacity or
ordinarily, public policy is
vitiated consent
millitated against.
DISTINGUISGING VOID CONTRACTS FROM VOIDABLE
CONTRACTS
Valid until annuled Void from the very beginning do
generally, no action is required to set it
aside, unless the contract has already
been performed.

May be cured by prescription Cannot be cured by prescription

Defense may be invoked only by Defense may be availed of by

the parties, or their successors anybody; whether he is a party to the
contract or not as long as his interest
is directly affected.

Referred to as relative or conditional Referred to as absolute nullity

nullity
 UNENFORCEABLE VOID

May be ratified Cannot be ratified

There is a contract but it cannot

There is no contract at all
be enforced by a court action

Cannot be assailed by third Can be assailed by anybody

parties directly affected

DISTINGUISHING VOID CONTRACTS FROM

UNENFORCEABLE CONTRACTS
CHARACTERISTICS
OF A VOID
CONTRACT
CHARACTERISTICS OF A VOID CONTRACT

(1) Generally, it produces

no force and effect
whatsoever
 CHARACTERISTICS OF A VOID CONTRACT

(2) It cannot be ratified

(par. 2, Art. 1409.)
RATIFICATION - Is a sign or give formal
consent to, making it officially valid.
 CHARACTERISTICS OF A VOID CONTRACT

DEFECTIVE
RESCISSIBLE VOIDABLE UNENFORCEABLE VOID
CONTRACTS

CAN BE MAY OR MAY

NO YES NO
RATIFIED? NOT
 CHARACTERISTICS OF A VOID CONTRACT

(3) The right to set up the defense

of illegality cannot be waived (Ibid.)

If you are the defendant or the person against

whom a void contract is being enforced, you
always have a defense, the illegality of the
contract and the defense cannot be waived
 CHARACTERISTICS OF A VOID CONTRACT

(4) The action or defense for the

declaration of its inexistence does not
prescribe (Art. 1410.)
VOID CONTRACT- party can always bring a court of action to
declare it void or inexistence despite the passage of time.

Since a void contract has no effect at all, is therefore,

unnecessary to bring an action to declare it void.

NOTE: Only the court can declare that the contract is null and
void.
 CHARACTERISTICS OF A VOID CONTRACT

DEFECTIVE
CONTRACTS
RESCISSIBLE VOIDABLE UNENFORCEABLE VOID

NO NO
PRESCRIPTION 4 YEARS 4 YEARS
PRESCRIPTION PRESCRIPTION
 CHARACTERISTICS OF A VOID CONTRACT

The right to set up the defense of illegality cannot be

waived but remember that it can be barred by LACHES.
failure or neglect for an unreasonable
time to file an action for declaration of
nullity of a contract.

ELEMENTS OF THE DOCTRINE OF LACHES

Delay must be unreasonable at the time of bringing the
matter
Negligence in asserting a claim or right
Knowledge of a claim by the petitioners in advance
 CHARACTERISTICS OF A VOID CONTRACT

EXAMPLE:
Alaska sells Bearbrand the Pagsanjan Falls and
Bearbrand gives Alaska the money. Is the contract void?
Why?

But suppose Alaska refuses to return to Bearbrand the

money, stating that there is nothing wrong with the
contract, what should Bearbrand do?
Title : Constantino vs. Estenzo
Case : G.R. No. L-40403
Ponente : MUÑOZ PALMA, J
Decision Date : Jul 31, 1975

A petitioner seeks the annulment of documents and

recovery of real property after discovering a simulated
extrajudicial settlement, leading to a legal battle over the
prescription of the action and the validity of the contracts
involved.
FACTS:
• Petitioner Ruperta Constantino filed a complaint against
respondents Numeriano Sadia, Esperanza Nicanor,
Valentin Dulce, and Elvira Dulce.
• The complaint sought the annulment of documents,
cancellation of the transfer certificate of title, and recovery
of real property with damages.
• Petitioner claimed to be the sole surviving legal heir of
Dionisia Caberos and Martin Constantino, who owned an
agricultural land in Ormoc City.
• Petitioner discovered that the property had been subject
to a simulated extrajudicial settlement and subsequent
sale. This resulted in the cancellation of the title in her
parents' names and the issuance of new titles to the
respondents.
• Petitioner argued that the extrajudicial settlement was
simulated and void, making the subsequent sales null and
void.
ISSUE:
Whether the respondent judge erred and gravely abused
his discretion in dismissing the petitioner's complaint on
the grounds of prescription without a trial on the merits.
RULING:
The Supreme Court set aside the dismissal of the complaint
and remanded the case to the trial court.
• The Court ruled that the action does not prescribe because it is
based on the claim that the deed of extrajudicial settlement was
simulated, void, and of no effect.
• According to Article 1410 of the Civil Code, the action or
defense for the declaration of the inexistence of a contract does
not prescribe.
• The Court also held that summary dismissal is not proper when
there are factual matters in dispute that require the presentation
and appreciation of evidence.
DECISION:
The Supreme Court ordered the remand of the case to the
trial court for a full trial on the merits after the respondents
surnamed Dulce had answered the complaint and a proper
pre-trial had been held. The court emphasized the
importance of giving litigants the opportunity to present their
evidence and secure a ruling on all issues, thus avoiding
"short-cuts" in judicial processes that impede the judicious
dispensation of justice.
 CHARACTERISTICS OF A VOID CONTRACT
(5) The defense of illegality is not available to
third persons whose interests are not directly
affected (Art. 1421.)
Persons entitled to raise defense of illegality
•Third persons are NOT allowed to bring an action to annul OR assail a
voidable and unenforceable contracts.

✓ HOWEVER, if the contract is illegal OR void, even a third person may avail
of the defense of illegality or set up its illegality as long as his interest is
directly affected by the contract
 CHARACTERISTICS OF A VOID CONTRACT

EXAMPLE:

Harold sold his parcel of land to his wife, Margarita. If Charlie,

a third person, became a creditor of Harold before the

transaction, does he has the right to question the sale of the

land? Why?
 Title : Cook vs. McMicking
Case : G.R. No. 8913
Ponente : MORELAND, J
Decision Date : Mar 3, 1914

FACTS:
•Creditor Nellie Louise Cook filed a lawsuit to set aside a transfer of real
estate made by her debtor, Edward Cook, to his wife in 1904.
•Nellie Louise Cook claims to be the absolute owner of a piece of land in the
district of Paco, Manila, which is registered under her name.
•In 1912, a judgment was entered against Edward Cook for the sum of
P10,000, and an execution was issued, levying upon the land owned by
Nellie Louise Cook.
•The property was advertised for sale, prompting Nellie Louise Cook to file for
an injunction to permanently prohibit the defendants from selling the land.
ISSUE:
Whether a creditor (Johnson) has the standing to
challenge the validity of a transfer of real estate made by
Edward Cook to his wife, Nellie Louise Cook, and
whether such transfer is subject to prohibition under
Article 1458 of the Civil Code.
RULING :
• The Court ruled in favor of Nellie Louise Cook and affirmed the
judgment of the lower court, permanently restraining the defendants
from selling the property.
•The creditor, who became such in 1911, had no standing to challenge
the validity of the transfer made in 1904. The prohibition under Article
1458 of the Civil Code, which restricts certain transfers between
spouses, can only be invoked by individuals who had a relationship to
the parties at the time of the transfer that would be affected by it. Since
the creditor had no such relationship when the transfer occurred, they
cannot attack its validity.
• Although transfers between spouses are restricted under Article
1458, this prohibition can only be used by parties who have rights
or interests in the property that the transfer interferes with. As
Johnson and other creditors had no rights or interests in 1904,
they cannot challenge the transfer.
• The property is owned by Nellie Louise Cook and is not subject
to levy and sale under the execution against Edward Cook.
DECISION:
The Supreme Court affirmed the judgment of the
Court of First Instance, continuing the injunction
against the sale of the property, and ruled with costs
against the appellants.
 CHARACTERISTICS OF A VOID CONTRACT

(6) It cannot give rise to a valid contract. (Art.

1422.)

"CONCEPT OF NOVATION"
Eeither change the object, subject or
conditions of a contract.
A void obligation cannot be novated because there is
nothing to novate. (ART. 1298)

REMEMBER: To give rise to a valid contract, the original original

contract must also be valid.
 CHARACTERISTICS OF A VOID CONTRACT

EXAMPLE:
Optimus sells a Yellow Chevrolet Camaro to Megatron. The
two parties also signed a repurchase contract wherein
Optimus has the right to buy back the car within two years.
It turned out that the Yellow Chevrolet Camaro was
rightfully owned by Bumblebee, and not by Optimus. What
is the nature of the repurchase contract? Why?
INSTANCES OF VOID
AND INEXISTENT
CONTRACTS
Article 1409: Instances of Void and Inexistent Contracts

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

customs, public order or public policy;
Contrary to:
Law - (1306) acts executed against the provisions of mandatory or
prohibitory laws.
Morals - (1306) those contrary to norms of good and right conduct
evolved in a community.
Good customs- (1306) habits and practices which through long usage
have been followed and enforced by society.
Public order - actions that disrupt public peace or safety.
Public policy - actions that are injurious to the public or against the
public good.
Ex. Contract for Immoral Acts
Emma agrees to pay Frank 2,000 to break up a marriage by
seducing one of the spouses.

Question:
Is the agreement between Emma and Frank legally binding?
Ex: Contract Contrary to Public Policy
Claire agrees to pay Dave 5,000 to make false statements about
a rival company to damage its reputation.

Question:
Can Claire legally enforce the contract with Dave?
(2) Those which are absolutely simulated or fictitious;

Absolute simulation – (1346) When the contract does not really

exist and the parties do not intend to be bound by the contract.
Title: Case of Tan vs. Court of Appeals
Case: G.R. No. 48043,
Decision Date: August 27,2007

Facts:
• Tan sold a parcel of land to Chua, but both parties had a
secret agreement that the sale was not real and that Chua
would not pay for the land, nor would Tan transfer ownership.
• The contract was executed to deceive Tan’s creditor by
making it appear that Tan had fewer assets than he actually
did.
Title: Case of Tan vs. Court of Appeals
Case: G.R. No. 48043,
Decision Date: August 27,2007

Ruling:
• The supreme court found that the contract was an absolute
simulation. Both parties had no intention to perform their
respective obligations under the contract.
• Since the contract was a sham, it was declared void and
without legal effect.
Title: Case of Tan vs. Court of Appeals
Case: G.R. No. 48043,
Decision Date: August 27,2007

Legal Principle:
• Absolute simulation contracts are void because they lack the
true consent necessary for a valid contract.
• The intent to create legal obligations is absent, which is a
fundamental requirement for the enforceability of a contract.
(3) Those whose cause or object did
not exist at the time of the
transaction;
Example: Non-Existent Subject Matter

Suppose Person A agrees to sell a specific antique vase

to Person B. Unknown to both parties, the vase was
destroyed in a fire the day before the contract was
made. Because the object of the contract (the vase) did
not exist at the time the agreement was made, the
contract is void.
(4) Those whose object is outside the
commerce of men;

Object outside the commerce of men

(1) those things - which are such by their very nature [sacred
things, res nullius [nobody's property
(2) those which are made such by special prohibitions established
by law,
(3) those rights which - are intransmissible because either they
are purely personal in character,
Title: DACANAY, Jr. vs. ASISTIO
Case: G.R. No. 93654
Decision Date: May 6, 1992
FACTS:
Petitioner Francisco U. Dacanay sought to compel city
officials, Mayor Macario Asistio, Jr. and City Engineer
Luciano Sarne, Jr., to remove illegal market stalls from
public streets in Caloocan City.
The petitioner argued that the city officials were leasing
portions of the public streets to market stallholders, which
was contrary to the law.
The trial court found that the disputed areas were public
streets and therefore outside the commerce of man.
FACTS:
The court ruled that the leases or licenses given to the
stallholders were null and void.
The court also held that the Executive Order issued by Acting
Mayor Robles, authorizing the use of a public street as a
vending area, contravened the general law that reserves city
streets for public use.
The court ordered the city officials to clear the streets and
restore them to their public purpose. The court emphasized that
the public's right to use the city streets should not be bargained
away through contracts.
The court noted that the city officials had ample time to find
alternative sites for the flea markets.
ISSUE:
May public streets or thoroughfares be leased or licensed to market
stallholders by virtue of a city ordinance or resolution of the Metro
Manila Commission?

RULING:
The leases or licenses given to the stallholders are null and void.
The Executive Order authorizing the use of a public street as a
vending area is invalid.
The city officials are ordered to clear the streets and restore
them to their public purpose
(5) Those which contemplate an impossible service;

ABSOLUTE IMPOSSIBILITY RELATIVE IMPOSSIBILITY

which arises from the circumstances or

which arises from the very nature or essence qualifications of the obligor rendering him
of the act or service itself, renders the contract incapable of executing the act or service,allows
void the perfection of the contract, - although the
fulfillment thereof is hardly probable

Thus, as a consequence, in a contract of

When the impossibility is permanent, however,
partnership where one of the partners obligates
as in the case of a person who is unable to
himself to contribute to the common fund an
perform the service which he has contracted
amount which is beyond his means, the
because of total blindness, the contract is
contract is not void because the impossibility
void.
may disappear.
Example:

Mark, a professional musician, signs a contract with a concert promoter to

perform at a series of concerts across the country over the next year. The
contract specifies that Mark will perform solo violin concerts at various
venues, and the promoter will pay him a fixed fee for each performance.

However, shortly after signing the contract, Mark suffers a severe injury to
his hand in a car accident, causing permanent damage that affects his
ability to play the violin at a professional level.Is the contract between
Mark and the concert promoter enforceable?
(6) Those the intention of the parties
relative to the principal object of the
contract cannot be ascertained;
EXAMPLE:
Anna sold his land to Ben. Anna has many lands. It
cannot be determined which land was intended by the
parties to be the subject of the sale.

Therefore, the contract shall be null and void and it is as

if the parties have not entered into any contract at all.
(7) Those expressly prohibited or
declared void by law.
CASE:
(EPG Construction Co. vs. Vigilar, 354 SCRA 566 [2001]; Dept. of Health vs.
C.V. Cachuela, 475 SCRA 218 [2006]; see Art. 1416.)
G.R. No. 131544

FACTS:
In "EPG Construction Co. v. Vigilar," petitioners, a group of construction
companies represented by Marcelo D. Foronda, sought to reverse the
decision of the Regional Trial Court of Quezon City, Branch 226.
The lower court dismissed their Petition for Mandamus against Hon.
Gregorio R. Vigilar, Secretary of the Department of Public Works and
Highways (DPWH).
The case originated from a 1983 housing project by the Ministry of Human
Settlement through the BLISS Development Corporation on government
property along the east bank of the Manggahan Floodway in Pasig City.
A Memorandum of Agreement (MOA) was signed between the Ministry of
Human Settlement and the Ministry of Public Works and Highways to
develop the site and construct 145 housing units.
DPWH contracted the petitioners to construct around two-thirds of each
housing unit.
Following verbal requests and assurances from DPWH Undersecretary Aber
Canlas, the petitioners undertook additional constructions to complete the
housing units without written contracts or appropriations.
Petitioners received payment for the initial work but were left
with an unpaid balance of P5,918,315.63 for the additional
constructions.
Despite favorable recommendations and the release of funds
by the Department of Budget and Management, DPWH
Secretary Gregorio Vigilar denied the payment claims.
Petitioners filed a Petition for Mandamus, which was dismissed
by the lower court on November 7, 1997.
ISSUE:
Are the petitioners-contractors entitled to compensation
for the additional constructions on the public works
housing project despite the absence of written contracts
and appropriations?
Does the principle of State immunity from suit apply in this
case to bar the petitioners' claims?
RULING:
Yes, the petitioners-contractors are entitled to
compensation for the additional constructions on the
public works housing project based on the principle of
quantum meruit.
No, the principle of State immunity from suit does not
apply in this case to bar the petitioners' claims.
 LEGAL
IMPLICATIONS AND
CONSEQUENCES
Pari Delecto

Is to which both of the parties are guilty

and neither will be able to claim action
against each other as both placed and
made erroneous actions in the contract
and will be prosecuted instead.
In Delecto

Is to which only one party is guilty or there

is a less guilty party, the innocent or the
less guilty party is able to collect returns
on what he/she has complied beforehand
and is not bound to complete the
arrangement of the contract.
Example

Anilov sold an illegally modified laptop to

Abad amounting to P20, 000. Abad only
paid P15, 000 and Anilov delivered merely
the laptop without the installation of the
operating system. Which party has an
action against the other?
EXCEPTIONS
AND SPECIAL
RULES
RECOVERY
Recovery of usurious interest. (1413)
Any rate of interest in excess of the maximum allowed under the
Usury Law is usurious and if paid, may be recovered together with
interest thereon from the date of payment in a proper action for the
same.

Usury Law (R.A. 2655) - are regulations governing the amount of

interest that can be charged on a loan. It has provided the legal rate
of interest for the loan or forbearance of any money, goods or
credits, where such loan or renewal or forbearance is secured in
whole or in part by a mortgage upon real estate the title to which is
duly registered, in the absence of express contract as to such rate of
interest, shall be 12% per annum.
 The whole interest paid may be recovered, not only the interest in
excess of those allowed by the usury law.
The rate of interest and other charges on a loan or forbearance of
money, goods or credit shall no longer be subject to any ceiling
prescribed by the Usury Law.

EXAMPLE: On January 1, 2024, Dino is indebted to Bing for Php 5,000

with an interest of 20% instead of 10% per month, and it was contracted
that Dino is required to pay the principal and interest of the debt on
June 30, 2024. On the maturity date, Dino paid the principal and the
interest that Bing demanded. 2 months after the payment, Dino knew
that the interest he paid was excessive to the interest that the usury law
allows. Could Dino now reimburse the excess he paid to Bing?
Title: Sanchez vs. Buenviaje
Case: G.R. No. L-57314
Decision Date: Nov 29, 1983

FACTS:
Teodoro Sanchez appealed a decision ordering him to pay his indebtedness to
Alejo Sanchez.
The dispute arises from a loan with usurious interest.
Teodoro argues that both the loan and the usurious interest are void.
The loan was made on August 25, 1976, and Alejo sued Teodoro in the Municipal
Court of Bato, Camarines Sur for the recovery of P2,000.00.
The notes contained stipulations for interest at the rate of 10% per month.
The Municipal Court ordered Teodoro to pay Alejo P2,000.00 plus interest at the
legal rate from the filing of the complaint.
Teodoro appealed to the Court of First Instance of Camarines Sur, which affirmed
the judgment with modification as to costs.
ISSUE:
Whether in loan contracts where it is found that the interest is usurious renders
the entire contract void, i.e., both the principal and the interest.

HELD:
No, only with respect to interest, in that case, legal interest rate shall apply. It is
now well-settled that: "the Usury Law (Act No. 2655), by its letter and spirit,
does not deprive the lender of his right to recover of the borrower the money
actually loaned this only in the case that the interest collected is usurious. The
law, as it is now, does not provide for the forfeiture of the capital in favor of the
debtor in usurious contract ... (Lopez and Javelona vs. El Hogar Filipino, 47 Phil.
249, 275 (1925].)
2. Recovery where contract for an illegal purpose.
(1414)

Requisites:
1. The contract is for an illegal purpose
2. The contract is repudiated before the purpose has been
accomplished or before any damage has been caused to a
third person
3. The court considers that public interest will be subserved by
allowing recovery.
EXAMPLE:

Tom agreed to invest his money worth 1 million pesos

in the buy and sell business of his friend. Subsequently,
Tom discovered that it was rather a swindling
syndicate. He then wants to get his money back from
his friend. Can Tom recover his money from his friend?
3. Recovery by an incapacitated person (1415)
Recovery can be allowed if one of the parties is
incapacitated and the interest of justice so demands.
It is not necessary that the illegal purpose has not been
accomplished or that no damage has been caused to a
third person.
EXAMPLE:

Jose, who is 17 years old, entered a contract with Panganiban, an

adult, to buy a smuggled bike for him to use. Now, Panganiban
took advantage of Jose’s age as he was a minor and would not be
charged heavily if he signed into the illegal contract. Jose then
recalls his mistakes and wants to get his money back as he was
getting scammed by Panganiban. Jose immediately filed an action
to the court to recover the money he paid to Panganiban.
4. Recovery where the contract is not illegal per se. (1416)
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;
3. Public policy would be enhanced by allowing the plaintiff
to recover what he has paid or delivered.
EXAMPLE:
Darwin donated to Peter everything he possessed
and owned, leaving nothing for himself. Can Darwin
recover anything from Peter?
Title: Guiang vs. Kintanar Case: G.R. No. 49634-36
Decision Date: July 25, 1981

FACTS
The case involves three related cases between the petitioners (Benjamin V.
Guiang and Natividad H. Guiang; Aurelio B. Hiquiana and Pastora O. Hiquiana) and
the private respondents (Filomeno C. Kintanar and Corazon B. Kintanar; Cora Ann
B. Kintanar, Cora Lou B. Kintanar, Fil Roger B. Kintanar).
A judgment based on a compromise agreement was issued by the trial court in
1975.
Three years later, the private respondents sought execution of the judgment,
alleging that the petitioners failed to execute the corresponding deeds of sale
over the remaining lots.
FACTS:
The petitioners opposed the execution, arguing that the compromise
agreement violated the 1973 Constitution and the Public Land Act.

ISSUES:
Is the act illegal per se?
RULING:
Judgment is rendered granting the petition. The disputed
compromise agreement is contrary to the public policy embodied in
our Constitution and the Public Land Act as amended by the former
since January 17, 1973, but it is not illegal per se.
5. Recovery of amount paid in excess of ceiling
price (1417)

Recovery of any amount paid in excess of the ceiling

price is allowed to curb the evils of profiteering or
black marketing. (Void payment as to the excess)
EXAMPLE:
Suppose by the executive order of the President,
the price per kilo of tomato has been fixed at
P100.00. Sophie buys one kilo of tomato to Hanna
for P150.00. Can Sophie recover her P50.00 from
Hanna?
6. Recovery of additional compensation for service rendered beyond time limit.
(1418)
The normal hours of work of any employee shall not exceed eight (8) hours a day. (Presidential
Decree No. 422 aka Labor Code)
This applies to employees in all establishments and undertaking whether for profit or not, but not
to:
1. Government employees
2. Managerial employees
3. Field personnel
4. Members of the family of the employee who are dependent upon him for support
5. Domestic helpers
6. Persons in the personal service of another
7. Workers who are paid by results
EXAMPLE:
Linda works in Toshiba Company in Canlubang, Laguna. She works
from Monday to Saturday from 8 am 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. Can Linda demand additional compensation for her two hours
overtime beyond the time limit?
Title: Saladas vs. Franklin Baker Co.
Case: G.R. No. L-13419
Decision Date: May 30, 1960

Facts
Casiano Saladas was an employee of Franklin Baker Company from December 7,
1949, to June 2, 1952.
Saladas filed a claim for overtime services with the Wage Administration Service of
the Department of Labor and was found entitled to collect P3,799.52.
Saladas filed a case in the Court of First Instance of Rizal to recover the amount,
but the case was dismissed without prejudice due to a motion for continuance
filed by Saladas.
A year and a half later, Saladas filed the present action to recover the same
overtime compensation.
Issue:
Whether or not petitioner is entitled to the overtime
compensation.

Held:
Yes, Under the Commonwealth Act No. 444 or otherwise known as
the Eight Hour Labor Law, employees are entitled to additional
compensation for services rendered beyond the eight-hour limit.
7. Recovery of amount of wage less than minimum fixed
If the employee or worker receives less than the minimum
wage rate, he can still recover the deficiency with legal interest
and the employer shall be criminally liable.
EXAMPLE:
Bryle the owner of a Shoe Factory in Manila executed a contract
with James as a laborer. When the pay day comes, James reacted
for the sum of money that he received because the amount that
he received is P580.00/day instead of P680.00. Can James
recover the deficiency? How much James can recover for the
deficiency?
THANK
YOU !