legal notes

Top of Form

Go!
Bottom of Form

Home About

Void of Inexistent Contracts; Articles 1409 1422 of the New Civil Code
Marso 2, 2007 Void or Inexistent Contracts A void contract, also known as a void agreement, is not actually a contract. A void contract cannot be enforced by law. Void contracts are different from voidable contracts, which are contracts may be (but not necessarily will be) nullified. An agreement to carry out an illegal act is an example of a void contract or void agreement. For example, a contract between drug dealers and buyers is a void contract simply because the terms of the contract are illegal. In such a case, neither party can go to court to enforce the contract, although some drug users mistakenly believe the opposite, and therefore take their disputes to court. Lack of Essential Elements Inexistent and void contracts cannot be ratified neither can the right to set up the defense of illegality be waived, they are the following: 1. Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy; 2. Those which are absolutely simulated or fictitious; 3. Those whose cause or object did not exist at the time of the transaction; 4. Those whose object is outside the commerce of men; 5. Those which contemplate an impossible service; 6. Those where the intention of the parties relative to the principal object of the contract cannot be ascertained; 6.1. This relates to Indeterminate object under Article 1349 of the New Civil Code which states; The object of every contract must be determinate as to its kind. The fact that the quantity is not determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine the same, without the need of a new contract between the parties. 7. Those expressly prohibited or declared void by law.

Prohibited Contracts This relates to the following persons who cannot acquire by purchase, even at a public or judicial auction, either in person or through the mediation of another under article 1491 paragraph four (4) and five (5) of the New Civil Code which states; Public officers and employees, the property of the State or of any subdivision thereof, or of any government owned or controlled corporation , or institution, the administration of which has been entrusted to them; this provision shall apply to judges and government experts who, in any manner whatsoever, take part in the sale; Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession. What is it to be filed in court? In order to follow the rules of law regarding void or inexistent contract, the action to be filed in court is an Action for the Declaration of Nullity.