RESCISSIBLE CONTRACTS
CONTRACTS
 Valid and enforceable until
rescinded by court.
 Rescission under art. 1381 is
a subsidiary action ( there is
no other remedy available)
limited to cases enumerated
therein
 While they are valid, they
cause pecuniary lesion or
prejudice to one of the
contracting parties.
 It cannot be ratified and
attack collaterally.
 The party demanding
rescission must be able to
return what he may be
obliged to restore if rescission
is granted
 Action for rescission must be
filed within 4 years from
accrual of the right of action.
VOIDABLE CONTRACTS UNENFORCEABLE VOID CONTRACTS
 All the essential requisites of  Unenforceable contracts  Produces no legal effect
a valid contract are present cannot be enforced or sued whatsoever to anyone
but the element of consent is upon in court by proper court  Not susceptible of ratification
defective. action unless they are ratified.  The right to set up the
 Valid and binding until set  They are susceptible to defence of inexistence or
aside by a final judgement of ratification and will remain as absolute nullity cannot be
a competent court. unenforceable until ratified. waived
 In case of intimidation,  Action or defence of nullity
violence or undue influence, of contract does not
four years from the defect of prescribed.
the contract ceases.
 In case of mistake or fraud,
four years from the time of
discovery.
 In case of incapacity to give
consent, 4 years from the
time incapacity ceases.
 Ratification extinguishes the
action.
 May be instituted by persons
who are principally or
subsidiarity liable thereto.
 Having been annulled, the
parties are required to restore
to each other which may have
been the SM of the contract
or its value. ( in case of
incapacitated person, to
return only insofar as he may
have been benefited)
 1. Those entered by guardians
whenever the wards whom
they represent suffer lesion
by more than 1/4 of the
value of the things.
Not when approved by the court
even if ward suffers lesion.
Sale of RP of ward without court
authority ( not included in its
general powers) is VOID even when
no damage is caused
1. Those were one of the
contracting parties is
incapable of giving consent.
 Minor
 Insane or demented persons
 Deaf mutes who do not know
how to read or write
 Person suffering from civil
interdiction
 Incompetent under
guardianship.
1. Those entered into in the 1. Those whose object, cause
name of another by one or purpose is contrary to
who has been given no law, morals, good customs,
authority or legal public order or public
representation, or who has policy.
acted beyond his powers.
 Unenforceable until ratified
by the person on whose
behalf it has been executed,
before it is revoked by the
other contracting party.
 NOTE: sale or encumbrance
of real property of ward or
absentee by guardian without
authority of court is void, not
merely unenforceable. (rule
95)

2. Those entered into by the
representative of an
absentee, if the latter suffer
lesion by more than 1/4 of
the value of the thing.
Not when approved by the court;
disposition or encumbrance of RP
without authority is void too.
2. Those were the consent is
vitiated by mistake,
violence, intimidation,
undue influence or fraud.
2. Those that do not comply
with statute of frauds
2. Those which are absolutely
simulated or fictitious
 Lack valid consent. It is
when the parties had no
intentions to be bound at all
to the contract.
 3. Contracts entered into in
FRAUD of creditors.
Rescissory action to set aside
contracts in fraud of creditors is
known as accion pauliana.
3. Those were both of the 3. Those whose cause, or
contracting parties are object does not exist at the
incapable of giving consent. time of the transaction


When debtor alienates property by

gratuitous title where debtor failed
to reserved sufficient property to
pay its debts OR when by onerous
title, made by a debtor against
whom some judgement has been
rendered or some writ of attachment
has been issued.

A contract of sale in violation of

right of first refusal is rescissible
because it is a contract in fraud of
creditor ( if the buyer acted in bad
faith)

4. Contracts relating to things 4. Those whose object is

under litigation outside the commerce of
men
If they have been entered into by the
defendant without knowledge and  Not susceptible of
approval of the litigants or of the appropriation
competent authority.

5. Payments made in a state of 5. Those which contemplate

insolvency impossible service
For obligations which the debtor
cannot be compelled at the time
they were effected.
 Absolute impossibility: when
no one can perform it
 Relative impossibility: when
due to special conditions or
qualification of the debtor, it
cannot be performed. ( if
permanent, nullifies the
contract)

6. Those whose intention of

the parties relative to the
principal object of the
contract cannot be
ascertained

Those expressly prohibited or

declared void by law.
As a rule: contracts are obligatory in whatever form they may have been entered into, provided all the essential requisites for their validity are present.

WHERE FORM IS ABSOLUTE AND WHERE IT MUST BE IN SOME FORM TO CONTRACTS WHICH REQUIRE FORM
NECESSARY FOR ITS VALIDITY BE ENFORCEABLE ONLY FOR CONVENIENCE (ART. 1357)

1. DONATION OF PERSONAL 1. CONTRACTS WHICH ARE NOT TO 1. ACTS AND CONTRACTS WHICH
PROPERTY WHERE THE VALUE BE PERFORMED WITHIN 1 YEAR HAVE FOR THEIR OBJECT THE
EXCEEDS 5000 (Art. 748) CREATION, MODIFICATION AND
EXTINGUISHMENT OF REAL RIGHT
OVER IMMOVABLE PROPERTY ( but
sale of real property or interest therein is
governed by statute of frauds)

2. DONATION OF REAL PROPERTY (Art. 2. SPECIAL PROMISE TO ANSWER DOR 3. CESSION, REPUDIATIONOR
749) THE DEBT, DEFAULT, OR RENUNCIARTION OF HEREDITARY
MISCARRAIGE OF ANOTHER RIGHTS OR OF CONJUGAL
PARTNERSHIP OF GAINS.

3. DONATION PROPERTER NUPTIAS( 3. AGREEMENT IN CONSIDERATION 4. POWER TO ADMINISTER

Art. 82 FC) OF MARRIAGE PROPERTIES

5. CONTRACT OF PARTNERSHIP 4. SALE OF GOODS, CHATTEL, OR REMEDY: compel the other party to observe the
WHERE REAL PROPERTY IS THINGS IN ACTION AT PRICE LESS form
CONTRIBUTED AS CAPITAL ( Art. THAN 500
1773)

5. AGENCY TO SELL PARCEL OF LAND 5. LEASE OF REAL PROPERTY FOR

OR ANY INTEREST THEREIN (Art. MORE THAN 1 YEAR AND SALE OF
1874) REAL PROPERTY OR AN INTEREST
THEREIN
6. STIPULATION LIMITING COMMON 6. REPRESENTATION AS TO THE
CARRIER’S LIABILITY IN THE CREDIT OF ANOTHER.
CARRIAGE OF GOODS (Art. 1744)

7. CONTRACT OF ANTICHRESIS (Art.

2134)

8. SALE OF LARGE CATTLE

9. CHATTEL MORTGAGE