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RESCISSIBLE VOIDABLE UNENFORCEABLE VOID/INEXISTENT

CONTRACTS CONTRACTS CONTRACTS CONTRACTS


DEFINITION Those validly agreed Those which Those that cannot Those which because certain
upon because all essential possess all be enforced in court facts, produce no effect at all
elements exist essential or sued upon by
requisites but one reason of defects
of the parties is provided by law
incapable of
giving consent
DEFECT/S Damage or injury to one Vitiation of Without or in excess Absolute lack either in fact or
of the parties or to a third consent or one of of authority, or in law of one, some, or all
person the parties is does not comply essential requisites of a
incapacitated with the Statute of contract; prohibited by law;
Frauds, or both N/V
parties are
incapacitated
GROUNDS (Art 1381)
1. LESION OR PREJUDICE
a) Entered into by
guardians/representatives
whenever the
wards/absentees whom
they represent suffer
lesion by more than ¼ of
the value of the thing
b) Partition of inheritance
where an heir suffers
lesion of at least ¼ of the
share to which he is
entitled.
2. FRAUD OR BAD FAITH
a) Those undertaken in
fraud of creditors when
the latter cannot in any
other manner collect the
claims due to them.
b) Those which refer to
things under litigation if
they have been entered
into by the defendant
without the knowledge
and approval of the
litigants or the competent
court.
3. SPECIAL CASES
governed by special
provisions (Arts. 1189,
1191, 1526, 1534, 1538,
1542, 1556, 1560, 1567,
and 1659)
ASSAILABILITY Assailable by party or Assailable by Assailable by party Assailable by party or third
BY THIRD third person party only only person who is directly affected
PERSONS
EFFECT VALID until rescinded VALID until Cannot be enforced Does not produce effects
annulled by court action
PRESCRIPTION 4 years (1389) 4 years (1391) No prescription No prescription (1410)
RATIFICATION Cannot be Ratified May be Ratified May be Ratified Cannot be Ratified
REMEDY RESCISSION ANNULMENT; RATIFICATION Declaration of Absolute Nullity
RATIFICATION or Inexistence
REQUISITES 1. Contract is valid 1. Knowledge of 1. Those entered 1. Contracts whose COC,
2. There is lesion/ the reason why into in the name purpose contrary to law
pecuniary prejudice contract is of another 2. Simulated/Fictitious
3. No other legal voidable 2. Those that don’t 3. Contracts w/o COC
remedy 2. Injured party comply with the 4. Contracts prohibited by law
4. Object not in legal must’ve Statute of Fraud
REQUISITES possession of another executed an act 3. Those wherein
5. Period to file which implies both parties are
his waiver incapable of
giving
(1381) (1390) (1403[1][2][3]) (1409)
KINDS 1. Those entered into by 1. Those where 1. Those entered 1. Contracts whose cause,
guardians whenever the one of the parties into in the name object or purpose is contrary
OF wards suffer lesion by is incapable of of another by one to law, etc
more than ¼ of the giving consent without, or acting 2. Simulated/Fictitious
CONTRACT value of the thing in excess, of 3. Those w/o cause or object
2. Representatives of 2.Those where authority 4. Contracts whose object is
absentees the consent is 2. Those who do not outside the commerce of
3. Those undertaken in vitiated by comply with the men
fraud of creditors when Mistake, Violence, Statute of Frauds 5. Contracts which
the latter can’t collect Intimidation, 3. Those where contemplate an impossible
the dues Undue Influence, both parties are service
4. Thing under litigation Fraud incapable of 6. The intention of the parties
entered into w/o giving relative the object can’t be
knowledge of it ascertained
5. Contracts specially 7. Contracts expressly
declared by law to be prohibited/declared void by
subject to ratification the law