VOIDABLE CONTRACTS

Art. 1390 to Art. 1402

Voidable or Annullable Contracts
Are valid contracts but one of the parties is incapable of giving consent, or
consent is vitiated by mistake, violence, intimidation, undue influence, or fraud.
Voidable or Annullable Contracts
They are valid and binding between the parties unless annulled by a proper
action in court by the injured party. And once ratified it can no longer be
annulled.
Voidable or Annullable Contracts
Economic damage is not essential.
 Kinds of Voidable Contracts

Legal incapacity to give Violation of consent

consent
where one of the parties is incapable where the vitiation is done by mistake,
of giving consent to the contract violence, intimidation, undue influence,
or fraud.
Annulment is a remedy provided by law,

for reason of public interest

for declaration of the inefficacy of

a contract

in order to restore them to their original condition before the contract was executed.
The action for annulment shall be brought within
Four (4) years
This period shall begin:

In case of intimidation, violence, or undue influence,

01 from the time the defect of the consent ceases.

In case of mistake or fraud, from the time of the

02 discovery of the same.

And when the action refers to contracts entered into

03 by minors or other incapacitated persons, from the
time the guardianship ceases.
Ratification
Cleanses the contract from all its
defect

This means that the injured party

voluntarily adopts of approves
some defective or unauthorized
act or contract which, without his
subsequent approval or consent,
would not be binding on him.
REQUISITES OF RATIFICATION
 For Implied Ratification:
There must be
knowledge of the Such reason must
reason which renders have ceased
the contract voidable

The injured party must have executed an act which

necessarily implies an intention to waive his right.
 REQUISITES OF RATIFICATION

For Express Ratification:

same as those for implied ratification except that the former is effected expressly.
 Who may Ratify
A contract entered into by an In case the contract is
incapacitated person may be voidable on the ground of
ratified by: mistake, etc. ratification can
be made by the party whose
consent is vitiated.
01 The guardian.

the injured party himself

02 provided he is already
capacitated.
 Ratification
is unilateral act by which a party waives the defect in his
consent. The conformity of guilty party to ratification is not
required. From the moment it was executed it ceases the right
of action to annul.
Party Entitled to Bring Action to ANNUL.

The plaintiff Thevivtim and not the party

must have an responsible for the defect is
interest in the the person who must assert
contract. the same.
 Right of the Strangers
to bring action.

One who is not a party to the contract or an assignee, or does not r

epresent those who took part , no legal capacity to challenge the v
alidity of such contract, strangers therefore are not obliged by the c
ontract, principally or subsidiarily
 Guilty part without right
to bring action.

The guilty party, including his successor in interest, cannot ask for
annulment. This rule is sustained by the principle that he who com
es to court must come with clean hands.
Duty Of Mutual Restitution upon Anullment.

Personal Obligations;
SERVICE RENDERED
The value thereof with the
corresponding interest.
02
IF THE CONTRACT IS
ANNULLED
Must restore to each other
03
a.) subject matter of the contract
with its fruits
b.) the price thereof with the
legal interest.
 Restitution by an
incapacitated person.

The incapacitated person is obliged to make restitution only to the extent that
he was benefited by the thing of price received by him. If he was not benefited
, he is not obliged to restore what he had received but the other contradicting
party is still bound to return what he had received, whether he was benefited
or not.
EFFECTS of loss of thing
to be returned.

If the thing to be returned is lost without the fault

of the person obliged to make restitution (defenda
nt), there is no more obligation to return such thin
g. But the other cannot be compelled to restore w
hat in virtue of the decree of annulment he is bou
nd to return.
If it is lost through his fault, his obligation is not ex
tinguished but is converted into an indemnity for d
amages consisting of the value of the thing at the
time of the loss with interest from the same date
and the fruits received from the thing was given t
o him to the time of its loss.
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Extinguishment of action for Annulment
If the person who has th
e right to institute an acti
on for annulment will not
be able to restore the thi
ng which may be obliged
to return in case the cont
ract is annulled because
such thing is lost through
his fault his right to have
the contract annulled is
extinguished.
The right of action is
based upon the inca
pacity of any one of t
he contracting partie
s. Whether the right
of action is based up
on incapacity of not, t
he rule is the same.
Effects where a party cannot restore what
he is bound to return.
When the contract is annulled, a reciprocal obligation of restitution
is created. The return by one party of what he is obliged to restore
by the decree if annulment may be regarded as a condition to the f
ulfillment by the other of what is incumbent upon him. There will b
e no annulment if the party cannot restore what is bound to return.