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RESCISSIBLE CONTRACS VOIDABLE CONTRACTS
MEANING  Contracts validly agreed
upon may be rescinded
in the cases established
by law
 Defect economic damage
 Valid and enforceable
until rescinded; there is a
sort of extrinsic defect
consisting of economic
damage or lesion
REQUISITES  The contract must be
valid and agreed upon
 Lesion to one parties or
to third parties
 Rescission must be
based on provided by law
UNENFORCEABLE
 Valid and enforceable
until annulled; The defect
is more or less ; The
defect is more or less
intrinsic
 - legal incapacity of one
party; or - vitiation of
consent
 These contracts are
binding,unless the are
annulled by a proper
action in court
 Can be ratified, they
become absolutely valid
and can no longer be
annulled
 Requisites of ratification,
Implied ratification
VOID OR INEXISTENT
CONTARCTS
 valid but cannot compel
its execution unless
ratified; extrinsic defect;
produce legal efefcts only
after ratified
 Unauthorized/No
sufficient authority –
entered into in the name
of another when: a. no
authority conferred b. in
excess of authority
conferred ( ultra vires )
 Both parties incapable of
giving consent -2 minor
or 2 insane persons
 Failure to comply with
Statute of Frauds
 a. Agreement to be
performed within a year
after making contract
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CONTARCTS
 No legal effect
 It produces no effect
whatsoever either against
or in favor of anyone
 b. There is no action for
annulment necessary as
such is ipso jure. A
judicial declaration to that
effect is merely a
declaration
 c. It cannot be confirmed,
ratified or cured
 d. If performed,
restoration is in order,
except if pari delicto will
apply
 e. The right to set up the
defense of nullity cannot
be waived f.
Imprescriptible
 g. Anyone may invoke
the nullity of the contract
whenever its juridical
effects are asserted
against him

 contracts which are
object or purpose is
contrary to law
 contracts which are
absolutely simulated or
fictitious
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  No legal remedy to do a) There must be
the reparation of the knowledge of the
damages reason which renders
 The party must able to the contract voidable.
give or return on what he b) Such reason must
is obliged to restore by have executed an act
the reason of contract which necessarily
 The object or the contarct implies an intention to
must not be in the waive his right
possession of the third
person  In personal obligation
 The period of filling the where the service had
action for rescission must already been rendered,
the value of interest,
not have prescribed
basis of damages,
recoverable from the
party benefited by the
service
 RATIFICTION or the
sanction of the contracts,
such reason having
ceased the person who
has a right to invoke it
should execute an act
and implies the intention
to waive his right.
REMEDIES  Those agreed upon in  voidable contracts may
representation of be annullable even if
absentees there is no damage to
 Entered into by guardian parties; types of voidable
whenever ward suffers contracts; binding
damage by more than 1/4 character unless
of value of object annulled; susceptibility to
ratification
 REQUISITES:
 b. Special promise to
answer for debt, default
or miscarriage of another
 c. Agreement made in
consideration of promise
to marry
 d. Agreement for sale of
goods, chattels or things
in action at price not less
than 500; exception:
auction when recorded
sale in sales book
 e. Agreement for lease of
property for more than 1
year & sale of real
property regardless of
price
 f. Representation as to
credit of another
 An agreement that by its
terms is not to be
performed within a year
from the making
 A special promise to
answer for the debt,
default or miscarriage
 An agreement made in
consideration of
 contracts without cause
or object
 contracts whose object
the commerce of men
 contracts which
contemplate aqn
impossible service
 contracts where
contemplate an
impossible service
 contracts where the
intention of the parties
relative to the object
cannot be ascertained
 contracts expressly
prohibited or declared
void by law
 It produces no effect
whatsoever either against
or in favor of anyone
 b. There is no action for
annulment necessary as
such is ipso jure. A
judicial declaration to that
effect is merely a
declaration
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CAUSE  Causes: injury or damage
to one of the parties or to
third persons
Cured by prescription
Need not be ratified
 1. Refers to the subject of
the thing which is the
object of the contract
 2. Refers to the nature of
the contract
 3. Refers to the principal
conditions in an
agreement
 4. Error as to person -
when it is the principal
consideration of the
contract
 loss of the thing through
fault/fraud of party
obliged to return the thing
but has no right to
institute proceeding, he
shall return the fruits and
the value of the thing
 loss of the thing through
fault/fraud of the person
who may institute the
proceeding (action for
annulment is
extinguished)
 one does not restore –
the other cannot be
compelled to comply
Can be ratified
marriage, other than a  c. It cannot be confirmed, Formatted: Font: (Default) Arial
mutual promise to marry ratified or cured
 An agreement of sale of  d. If performed, Formatted: Font: (Default) Arial
goods, chattels, or things restoration is in order,
in action, at a price not except if pari delicto will
less than 500 pesos. apply
 An agreement for the  e. The right to set up the Formatted: Font: (Default) Arial
leasing for a longer defense of nullity cannot
period than one year or be waived
property with interest  f. Imprescriptible Formatted: Font: (Default) Arial
 A representation as to  g. Anyone may invoke Formatted: Font: (Default) Arial
the credit of a third the nullity of the contract
person whenever its juridical Formatted: Font: (Default) Arial
 Those where both parties effects are asserted
are incapable of giving against him
consent to a contract Formatted: Font: (Default) Arial
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Curable by Formatted: Centered
ACKNOWLEDGEMENT Formatted: Centered
 2 ways of curing
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  Failure of defendant to Formatted: Font: (Default) Arial
object in time, to the
presentation of parole
evidence in court, the
defect of unenforceability
is cured
 Acceptance of benefits
under the contract. If
there is performance in
either part and there is
acceptance of
performance, it takes it
out of unenforceable
contracts; also estoppel
sets in by accepting
performance, the defect
is waived Formatted: Font: (Default) Arial
cases  Contracts entered into in Formatted: Font: (Default) Arial
behalf of wards
 Contracts agreed upon in Formatted: Centered
representation of Formatted: List Paragraph, Left, Bulleted + Level: 1 +
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 Contracts undertaken in Formatted: Centered
fraud of creditors
 Contracts which refer to
things under litigation
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 Contracts approved by Formatted: Centered
court- rescission cannot
take place because it is Formatted: Font: (Default) Arial
valid whether there is Formatted: List Paragraph, Left, Bulleted + Level: 1 +
lesion or not Aligned at: 0.25" + Indent at: 0.5"
 Those which refer to Formatted: Centered
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;
 All other contracts
specially declared by law
to be subject to
rescission
Void (1)minors ( below 18 )  Those lacking in Formatted: Font: (Default) Arial
(2) insane unless acted in lucid essential elements: no
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(3) deaf mute who can’t read or cause (inexistent ones) –
write essential formalities are
(4) persons specially not complied with ( ex:
disqualified: civil interdiction donation propter nuptias
(5) in state of drunkenness – should conform to
(6) in state of hypnotic spell formalities of a donation
to be valid
 Prohibited by law Those
expressly prohibited or
declared void by law -
Contracts w/c violate any
legal provision, whether it
amounts to a crime or not
 Illegal/Illicit ones – Those
whose cause, object or
purpose is contrary to
law, morals, good
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customs, public order or
public policy ; Ex: Formatted: List Paragraph, Left
Contract to sell marijuana Formatted: Centered
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