Good evening everyone we are group 9, and this evening we will be

discussing about Chapter 8, Unenforceable contracts, articles 1403 –

1408 .

Unenforceable contracts are those that cannot be enforced in court by

reason of defects provided by law until and unless they are ratified
according to law.
Being ratified or ratification means the action of signing or giving
formal consent to a treaty, contract, or agreement, making it officially
valid. The one who will ratify is the principal.

While rescissible and voidable contracts are valid and enforceable unless
they are rescinded or annulled, unenforceable contracts, however,
although valid, are unenforceable unless they are ratified. The mere
lapse of time cannot give effect to such a contract. The defect is of a
permanent nature and will exist as long as the unenforceable contract is
not duly ratified by the person in whose name the contract was executed.
Also when compared to rescissible contracts, these contracts have legal
effects but they can still be annulled ( mapawalan ng bisa ) and/ or
recission is a relief or remedy that the law grants to both the contracting
parties or even to 3rd parties to protect them form all injury and damage
the contract may cause. Rescind is to declare the contract void in its
inception and to put an end to it as if it was never there.
Before ratification the contract has no effect but after, it is now
considered valid and will have its effects.

Unauthorized contracts – Example :

without the authority or consent from Irish , JV sold land in the name of
Irish to Homer. Ratification can either be expressed ( expressly ratifies
in writing or verbally ) or implied ( based on conduct of the principal
which is inconsistent with any position other than a confirmation of the
act done in his behalf. )
Take note that unauthorized contracts can still be unenforceable even
with authorization, because the person authorized acted beyond the
power of the authority.
Example : You were on authorized to mortgage the land but instead you
sold it.
Why does law require that a contract be in some form ?
Generally, contracts are obligatory, in what ever form such contracts
may have been entered into, provided all the requisites for their validity
are present. When however the law requires that a contract be in some
form for it to be valid or enforceable, that requirement must be complied
with.
A certain form may be prescribed by law for any of the following
purposes: for validity and enforceability of the contract.
The term “statute of frauds’’ is descriptive of statutes which require
certain classes of contracts to be in writing. This statute does not deprive
the parties of the right to contract with respect to the matters therein
involved, but merely regulates the formalities of the contract necessary
to render it enforceable. The effect of non-compliance is simply that no
action can proved unless the requirement is complied with.
Only applies only to executory contracts those where no performance
has not yet been made. Even if there is partial performance this statutes
can not be applied anymore.
Purpose
The Statute of Frauds has been enacted not only to prevent fraud and
perjury in the enforcement of obligations depending for their evidence
on the unassisted memory of witness but also to guard against the
mistakes of honest men by requiring that certain agreements specified
(Art. 1403, must be in writing signed by the party to be charged;
otherwise, they are unenforceable by action in court.
These are the contracts required by the statute of frauds to be in writing.
1. Agreement not to be performed within one year from
the making thereof.
In order that this provision be applicable, it must appear that the parties
intended when they made the contract that it should not be performed
within a year.
Example: On Dec 1, 2022 Kazuki sold to Red verbally a specific type of
shoe for 5,000 pesos the parties agreed that the delivery and payment
shall be on Dec, 25, 2023. This contract was entered into verbally so it is
unenforceable, but when written it is.
2. Promise to answer for the debt, default, or miscarriage
of another.
In a guaranty, the promise is merely subsidiary or collateral
to the
promise of another (the original or principal debtor).
EX: Mang Kanor owes Kulas P5,000.00 with Kepueng as guarantor.
The contract is entered into verbally, again. Here, Kanor has a special
promise to answer for the debt of Kul in case Kuls fails to pay the same.
If Kanor fails to pay Kulas, Kanor cannot compel Kepueng to pay his
debt because the contract was into verbally .This promise is
unenforceable unless it is in writing signed by Keps.
(3) Agreement in consideration of marriage other than a
mutual promise to marry.
Ex: Mang Kanor promised Amanda to give her a specific car if she
marries Waller by next month, the contract was entered into verbally.
Now, a week later Amanda marries Waller. Question can Amanda
demand the delivery of the car? The answer is no, why? No , because if
the agreement is in consideration of marriage then it must be in writing.
Otherwise it is unenforceable.
Exception; other than a mutual promise to marry. If it is a mutual
promise to marry between the parties then, the contract is enforceable
even If it was entered into verbally.
4.Agreement for sale of goods, etc. at price not less than
P500.00
Kanor and Kulas entered into a contract of sale verbally of a particular
shirt that costs 800 pesos delivery and payment are to take place on Nov
1, 2023. If on the date stated Kanor refused to deliver the shirt, kulas
cannot compel him to deliver, even if Kanor is willing to pay, to be
enforceable this contract must be in writing.

5. Agreement for leasing for a longer period than one year.

If the lease is for 1 year or less pwede syang oral contract. Thus, it is
enforceable.
a written lease provides a clear record of what was agreed to. After
several years the parties involved may recall details of the lease
agreement differently or heirs may want to know what was previously
negotiated.
Ex:
R agreed to lease his house to E for two (3) years. Again, this agreement
must appear in writing to be enforceable unless it is partially executed.
(6) Agreement for the sale of real property or of an interest
therein.
If the sale of an immovable( meaning real) property (kahit pa magkano,
basta real property yung binebenta), then the contract must be in writing,
otherwise it is unenforceable. EX; Land, buildings, houses.

(7) Representation as to the credit of a third person.

Ex: Amanda wants to borrow 10,000 pesos from River Bank, bago pa
nag release ng pera yung bank, the bank inquired from Waller about sa
credit status ni Amanda, pero si Waller binigyan nya ng assurance si
River Bank that the credit status of Amanda is good. He said that
Amanda is a well-known client of other banks and could easily pay his
loan if given. Now after marinig to nung bank nag release sya ng money
kay Amanda. If on the due date of the loan, hinde makapagbayad si
Amanda, can the bank hold Waller liable? Hinde kasi the representation
must be in writing, yung sinabi lang naman ni ganda is verbal. Making
this contract unenforceable.

3. Those where both parties are incapable of giving

consent to a contract.

If only one party is capable of giving consent, then it is a voidable

contract.
Ex: Kazuki, minor sold their motorcycle to Red, minor.
Exception : If the guardians of both Kazuki and Red ratified the
contract.
if they are unable to understand the facts, nature, extent, or
implications of the situation due to drugs, alcohol, a mental disability,
being asleep or unconscious, or based on their age.
tapos yung mga naexperience yung vices of consent.
Mistake, violence, force, intimidation, undue influence, and fraud.
Lucid interval is a brief period during which an insane person regains
sanity sufficient to have the legal capacity to contract and act on his
or her own behalf.