VOID OR INEXISTENT 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;
(1306)

(2) Those which are absolutely simulated or fictitious;

(create the appearance of legal agreement but with no real intention to be bound in terms, pretending to contract
without genuinely legal obligations)

(3) Those whose cause or object did not exist at the time of the transaction;

(Sandra sells to Ben a parcel of land. In the deed of sale, P100,000.00 is stated as the price of the land. If this statement
is false, then there is no contract of sale..)

(4) Those whose object is outside the commerce of men; (such as sidewalk, A sell the side walk to B whichs void ,

(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;-
the primary object is not unsure or uncertain, example A sell his land to B the contract is void kase hindi tiyak kung
anong object , kung ano or saang land)

(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.

VOID CONTRACTS- are those which are deemed never to have existed from the very start and generally have no effect
at all as they contain defects, or are tainted with illegality.

INEXISTENT CONTRACTS- 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

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.

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.

It also cannot be ratified, neither can the right to set up the defense of illegality be waived. accordingly, there is no need
for an action to set aside a void or inexistent contract.

(ni hindi rin maaaring iwaive ang karapatan na ipagtanggol ang ilegalidad. kaya't, walang pangangailangan para sa isang
aksyon upang pawalang-bisa ang isang walang bisa o hindi umiiral na kontrata)

ART. 1410. The action or defense for the declaration of the inexistence of a contract does not prescribe. (Ang aksyon o
depensa para sa deklarasyon ng kawalan ng bisa ng isang kontrata ay hindi naglilimita ng panahon.)

Prescription- taning para maghain ng kaso sa korte

The defect of inexistent of contract –is permanent and incurable, hence it cannot be cured either by the ratification or
by prescription Other term: No time limit: Because the defect is incurable, an action to declare the inexistence of a void
contract does not have a prescription period, meaning a person can file a lawsuit to declare it void at any time.
EX: X and Y are the aunts of Z , they are both spinsters ( mamatandang dalaga) ang kabuhayan nila is magburda at
magtahi ,hindi nakapag aral ng English but able to read and write in tagalog. Yung kabuhayan nila mostly sa bahay lang.
Nanaghiram si X and Y ng 2,000 sa mag asawa na si Z and Q para ang repair sa sirang rooftop. A month later, ang
magkapatid na si Z and V ay bumisita sila sa kanilang tita kasama ang kanilang document na written in English, X and Y
ask about document and Z answered it just a debt amounting to 2,000, then X and Y assigned the documents . tapos si Z
asked to x and y to vacant the land claiming na sila n a ang may ari ng bahay.

Supreme court: A contract of purchase and sale is null and void and produces no effects whatsoever where the
same is without cause or consideration in that purchase price which appears thereon as paid has in fact never been paid
by the purchase to vendor.

- A party to a void contract can always bring an action in court to declare it nullity or inexistence.
- In same way, a party against whom a void contract is being enforced can also always claim the defense of nullity
since the defect is permanent and incurable.
Google translate: (walang lunas or , thus the action or defense does not prescribe despite the passage
of time.( Sa parehong paraan, ang isang partido na laban sa kanya ay pinapatupad ang isang walang bisa na
kontrata ay maaari ring palaging mag-claim ng depensa ng kawalang-bisa dahil ang depekto ay permanente at
hindi mapapagaling, kaya ang aksyon o depensa ay hindi nawawalan ng bisa sa kabila ng paglipas ng panahon.)

Imprescriptible: This means something that cannot be taken away or acquired by prescription. For example, an
imprescriptible right is a right that cannot be lost or taken away. (Imprescriptible: Ito ay nangangahulugang isang bagay
na hindi maaaring mawala o makuha sa pamamagitan ng prescription. Halimbawa, ang imprescriptible na karapatan ay
isang karapatan na hindi maaaring mawala o alisin.)

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 (The things or the price of the stipulated contract as the
effect or instrument of the crime shall be confiscated in favor of the government.) 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)

In pari delicto is “a universal doctrine which holds that no action arises, in equity or at law, from an illegal contract; no
suit can be maintained for its specific performance, or to recover the property agreed to be sold or delivered, or money
agreed to be paid, or damages for its violation; and where the parties are in pari delicto, no affirmative relief of any kind
will be given to one against the other.’’( is a legal request for compensation or other help from a court.)

Indeed, one who seeks equity and justice must come to court with clear hands. Art. 1411 VOID OR INEXISTENT
CONTRACTS 798 CONTRACTS This rule, however, is subject to exceptions (Arts. 1411-1419.) that permit the return of
that which may have been given under a void contract.

What will be the result if both parties are in pari delicto?

a) The parties shall have no action against each other;

b) Both shall be prosecuted;

c) The things or the price of the stipulated contract as the effect or instrument of the crime shall be confiscated in
favor of the government.
  Kung ang kontrata ay nasa yugto pa ng pagpapatupad, hindi nila maipipilit ang isa't isa na tuparin ang kani-
kanilang mga pangako; at
 Kung ang kontrata ay naipatupad na, hindi na nila maibabalik ang mga binayaran o naipadala na nila sa isa't isa.
Ang batas ay iiwan sila kung nasaan sila.

Principle of in pari delicto – Void agreement cannot expect the aid of the law, the court leave them as they are , Neither
court of laws or equity will interpose( Makialam) to grant relief to the parties, when an illegal agreement has been
made , and both parties stand in pari delicto.

Pari delicto (in equal fault)- Two or more people are at fault or are guilty of a crime. Ex illegal na sugalan

GENERAL RULE: IN PARI DELICTO

Generally, if both parties are equally guilty or in pari delicto, the courts will just leave them as they are.

REASON: One who seeks equity and justice must come to court with clear hands.

TWO KINDS OF ILLEGAL CONTRACTS

A.With a criminal offense; b. Without a criminal offense.

TWO KINDS OF ILLEGAL AND CRIMINAL CONTRACTS

a. Both parties are guilty (in pari delicto);

b. Only one is guilty and the other is innocent.

1. What will be the result if both parties are in pari delicto?

a) The parties shall have no action against each other;

b) Both shall be prosecuted;

c) The things or the price of the stipulated contract as the effect or instrument of the crime shall be confiscated in favor
of the government.

2. Where only one party is guilty(DELICTO) . — 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. The innocent one
or the less guilty may claim what he has given and shall not be bound to comply with his promise. (par. 2.)( Ang walang
sala o ang hindi gaanong nagkasala ay maaaring bawiin ang kanyang ibinigay at hindi obligado na tuparin ang kanyang
pangako.)

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. (1306)