Arevalo, John Michael D. .

MM31FC1

Rescissible Voidable Unenforceable Void

Contracts Contracts Contracts Contracts
Valid contracts Valid until annulled Contracts that cannot be Contracts that
because all the unless there has sued upon or enforced is absolutely
essential requisites been ratification. In a unless they are ratified. null and void.
of a contract exist voidable contract, It has no effect
but by reason of the defect is caused at all and
Definition economic injury or by vice of consent. cannot be
damage to one of ratified
the parties or to the
third person, the
contract may be
rescind.
Grounds Article (1381). Article (1390). Article (1403). Article (1409).

The following The following The following contracts The following

contracts are contracts are are unenforceable, unless contracts are
rescissible: voidable or they are ratified: inexistent and
annullable, even void from the
(1) Those which though there may (1) Those entered into in beginning:
are entered into by have been no the name of another
guardians whenever damage to the person by one who has (1) Those
the wards been given no authority or whose cause,
contracting parties: legal representation, or
whom they object or
represent suffer who has acted beyond his purpose is
lesion by more than (1) Those where one powers; contrary to
one-fourth of of the parties is law, morals,
the value of the incapable of giving (2) Those that do not good customs,
things which are the consent to a comply with the Statute of public order or
object thereof; Frauds as set forth in this public policy;
contract;
number. In the following
(2) Those agreed cases an agreement (2) Those
upon in (2) Those where the hereafter made shall be
which are
representation of consent is vitiated by unenforceable by action, absolutely
absentees, if the mistake, violence, unless the same, or some simulated or
latter suffer the intimidation, undue note or memorandum, fictitious;
lesion stated in the influence or fraud. thereof, be in writing, and
preceding number; subscribed by the party (3) Those
charged, or by his agent; whose cause
(3) Those These contracts are evidence, therefore, of
or object did
undertaken in fraud binding unless they
of creditors when the are annulled by a
latter cannot in proper action in the agreement cannot be not exist at the
any other manner court. They are received without the time of the
collect the claims writing, or a secondary transaction;
susceptible of
due them; evidence of its contents:
ratification. (4) Those
(4) Those which (a) An agreement that by whose object
refer to things under its terms is not to be is outside the
litigation if they have performed within a year commerce of
been entered into by from the making thereof; men;
the
defendant without (b) A special promise to (5) Those
the knowledge and answer for the debt, which
approval of the default, or miscarriage of contemplate
litigants or of another; an impossible
competent judicial service;
authority; (c) An agreement made in
(5) All consideration of marriage, (6) Those
other contracts other than a mutual where the
specially declared by promise to marry; intention of the
law to be subject to parties relative
rescission.(1291a) (d) An agreement for the to the principal
sale of goods, chattels or object of the
things in action, at a price contract
not less than five hundred cannot be
pesos, unless the buyer ascertained;
accept and receive part of
such goods and chattels, (7) Those
or the evidences, or some expressly
of them, of such things in prohibited or
action or pay at the time declared void
some part of the by law.
purchase money; but
when a sale is made by
auction and entry is made
by the auctioneer in his
sales book, at the time of
the sale, of the amount
and kind of property sold,
terms of sale, price,
names of the purchasers
and person on whose
account the sale is made,
it is a sufficient
memorandum;
 (e) An agreement of the
leasing for a longer period
than one year, or for the
sale of real property or of
an interest therein;

(f) A representation as to
the credit of a third
person.

(3) Those where both

parties are incapable of
giving consent to a
contract.

Remedy Rescission - Annulment Ratification Declaration of

Is a remedy granted - is a remedy - When one voluntarily absolute nullity
by law to the provided by law, for adopts some defective or of inexistence
contracting parties reason of public unauthorized act or
and sometimes even interest, for the contract which, without
to third persons in declaration of his subsequent approval
order to secure inefficacy of a or consent, would not be
reparation of contract based on a binding on him.
damages caused defect or vice in the - It cleanses the contract
them by a valid consent of one of from all its defects from
contract, by means the contracting the moment it was
of the restoration of parties to restore constituted. The contract
things to their them to their original thus becomes valid.
condition in which position in which Hence, the action to
they were prior to they were before the annul is extinguished.
the celebration of contract was
said contract. executed.

Ratification
- When one
voluntarily adopts
some defective or
unauthorized act or
contract which,
without his
subsequent approval
 or consent, would
not be binding on
him.
- It cleanses the
contract from all its
defects from the
moment it was
constituted. The
contract thus
becomes valid.
Hence, the action to
annul is
extinguished.

Confirmation
– is the act of
purging the voidable
contracts of the
defect through the
renunciation of the
action of nullity
made by the person
who can invoke the
vice or defect of said
contract.
The defect is about The defect is in The defect is in the The defect is
the lesion or consent. There is a capacity of both parties, in the object of
economic damage or vitiation of consent the lack of authority of the the contract.
pecuniary prejudice. or one of the parties party in entering into the The object
Nature of is incapable of giving contract or with the form maybe illegal,
Defects consent to the of the contract. immoral,
contract. beyond the
commerce of
man or
inexistent.
 Within 4 years from Within 4 years from No period/ prescription. No Period or
the date of contract. the date of capacity. prescription.
4 years from the
date force,
intimidation or undue
Period
influence ceases
and;
4 years from the
date error or fraud
was discovered.

Cannot be
Characteri Valid, Cannot be Ratified nor
Valid , Binding Valid, binding
stics enforced/ Not Binding validated /
Void at all