DEFECTIVE CONTRACTS

PROVISIONS VALID RESCISSIBLE VOIDABLE UNENFORCEABLE VOID

1306: Autonomy
1313: Contract to
Defraud Creditors
1317: Unauthorized If the AGENT sells the property lower than the
Contract agreed amount (sinabi ni principal na ibenta ng
10k. Pero binenta ni Agent ng 5k) Valid but
Unenforceable.
RATIFICATION: If binenta ni Agent lower than
the agreed amount, pero AFTER mabenta
sinabi ni Principal na okay lang hayaan na,
VALID.
If the AGENT sells the property higher than the
agreed amount (sinabi ni principal na ibenta ng
10k. Pero binenta ni Agent ng 20k) VALID.
Excess belongs to the PRINCIPAL.
GR: Parties can agree on anything.
XPN: If contrary to law, morals,
good customs, public order, and
public policy, VOID.
Accion Pauliana
GR: Person is not bound by the
contract of another if NO
knowledge and NO consent by him.
XPN: Authorization is Given to TP:
Requisites to be bound by the TP:
1. He must be authorized
2. He must act within the scope of
authority.
If one is missing, contract is
UNENFORCEABLE

1318: Essential COC ( Consent, Object, and Cause)

Elements of Contract GR: If one of them is missing, the
contract is VOID.
 Insanity
 Civil Interdiction