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4 Kinds of Defective Contracts
4 Kinds of Defective Contracts
1. RESCISSIBLE – valid until rescinded; has ALL essential requisites but because of injury/damage to one
of the parties, the contract may be rescinded.
2. VOIDABLE – valid until annulled; has ALL essential requisites but because of defect in consent,
contract may be annulled.
3. UNENFORCEABLE – cannot be sued/enforced unless ratified; no effect NOW but may take effect
upon ratification.
5 RESCISSIBLE CONTRACTS
1. Those entered by guardians & suffered LESION by more than ¼ of value of the value that is the
OBJECT.
3. Those undertaken in FRAUD of creditors when the creditors cannot further claim.
3 VOIDABLE CONTRACTS
3 UNENFORCEABLE CONTRACTS
1. Those entered in name of other person, or who acted BEYOND his powers.
7 VOID/INEXISTENT CONTRACTS
5. Those whose CAUSE/OBJECT/PURPOSE is contrary to law, morals, good customs, public order, or
public policy.