Justin V.

Torres 1G

DEFECTIVE CONTRACTS

RESCISSIB VOIDABLE UNENFORCEAB VOID

LE LE
DEFINITION Those Those which Those which Those which
which are possess all cannot be lack
valid but the enforced by absolutely
are essential proper action in either in fact
defective elements court unless or in law one
because of for validity they are ratified or some of
injury or but the because either: the elements
damage to consent is (1) they are essential for
either of vitiated entered into its validity.
the either by without or in
contracting lack of legal excess of
parties or to capacity of authority; (2)
third one of the they do not
persons, as contracting comply with the
a parties, or statute of
consequenc by mistake, frauds; (3) Both
e of which it violence, contracting
may be intimidation parties do not
rescinded , undue possess the
by means influence, required legal
of a proper or fraud capacity.
action for even
rescission. though
there may
have been
no damage
to the
contracting
parties.
ARTICLES IN Art. 1380- Art. 1390- Art. 1403- 1408 Art. 1409-
THE CIVIL 1389 1402 1422
CODE
DEFECT/S Defect is Defect is Defect is caused Defect is
caused by caused by by lack of form, caused by
injury/ vice of authority, or lack of
damage consent. capacity of both essential
either to parties not elements or
 one of the cured by illegality.
parties or to prescription.
a third
person.
EFFECT/S Valid and Valid and Cannot be Do not, as a
enforceable enforceable enforced by a general rule
until until proper action in produce any
rescinded annulled by court. legal effect.
by a a
competent competent
court. court.
PRESCRIPTI Action for Action for Corresponding Action for the
ON OF rescission annulment action for declaration or
ACTION OR may or defense recovery, if nullity or
DEFENSE prescribe. or there was total inexistence or
annulability or partial defense of
may performance or nullity or
prescribe. the inexistence
unenforceable does not
contract under prescribe.
No.1 or 3 of Art.
1403 may
prescribe.
EFFECT OF Cured by Cured by Not cured by Not cured by
PRESCRIPTI prescription prescription prescription prescription
ON
RATIFICATIO Need not be Can be Can be ratified Cannot be
N ratified ratified ratified
ASSAILABILI Assailed by Assailed Assailed only by Assailed by a
TY a only by a a contacting contracting
contracting contracting party. party and a
party and a party. third person
third person whose
who is interest is
prejudiced directly
or damaged affected.
by the
contract.
HOW Assailed Assailed Assailed directly Assailed
CONTRACTS directly directly or or collaterally. directly or
MAY BE only. collaterally. collaterally.
ASSAILED
REMEDY Rescission Annulment, Ratification Declaration of
Ratification Absolute
Nullity or
 Inexistence

EXAMPLES (1) Those (1) Those (1) Those (1) Those

which are where one entered into the whose cause,
entered of the name of another object or
into by parties is person by one purpose is
guardians incapable of who has been contrary to
whenever giving given no law, morals,
the wards consent to a authority of good
whom they contract; legal customs,
represent (2) Those representation public order
suffer lesion where the or who has or public
by more consent is acted beyond policy;
than ¼ of vitiated by his powers; (2) Those
the value of mistake, (2) Those that so which are
the things violence, not comply with absolutely
which are intimidation the Statute of simulated or
the object undue Frauds. The fictitious;
thereof; influence or following cases (3) Those
(2)Those fraud. (Art an agreement whose cause
agreed 1390) hereafter made or object did
upon in shall be not exist at
representati unenforceable the time of
on of by action, unless the
absentees, the same or transaction;
if the latter some note or (4) Those
suffer the memorandum whose object
lesion thereof, be in is outside the
stated in writing, and commerce of
the subscribed by men;
preceding the party (5) Those
number; charged, or by which
(3)Those his agent: a) An contemplate
undertaken agreement that an impossible
in fraud of by its terms is service;
creditors not to be (6) Those
when the performed w/in where the
latter a year from the intention of
cannot in making thereof; the parties
any other b) A special relative to the
manner promise to principal
collect the answer for the object of the
claims due debt, default or contract
them; miscarriage of cannot be
(4) Those another; c) An ascertained;
which refer agreement (7) Those
to things made in expressly
under consideration of prohibited or
litigation if marriage, other declared void
they have than a mutual by law;
been promise to (Art 1409)
entered marry; d) An
into by the agreement for
defendant the sale of
w/o the goods, chattels
knowledge or things in
and action at a price
approval of less than P500,
the litigants unless the buyer
or of accept and
competent receive part if
judicial such goods and
authority; chattels, or the
(5) All other evidences or
contracts some of them,
especially but when a sale
declared by is made by
law to be auction and
subject to entry is made by
rescission. the auctioneer in
(Art 1381) his sales book, it
is a sufficient
memorandum;
e) An agreement
for the leasing
for a longer
period than 1
year or for the
sale of real
property or of an
interest therein;
f) A
representation
as to the credit
of third person.
(3) Those where
both parties are
incapable of
giving consent
to a contract.
(Art 1403)