RESCISSIBLE VOIDABLE UNENFORCEABLE VOID & INEXISTENT

Valid and enforceable until rescinded;

there is a sort of extrinsic defect consisting
of economic damage or lesion


Valid and enforceable until annulled;
The defect is more or less intrinsic

Validable transaction;
Cannot be enforce unless ratified


Does not and cannot produce legal effect
Causes:
injury or damage to one of the parties or to
third persons
[GAFLAI Arts. 1381 1382]
Causes: (Art. 1390)
- legal incapacity of one party; or
- vitiation of consent
Causes: (Art. 1403)
- contract is entered into in excess or
without authority
- non-compliance with Stature of Frauds
Legal incapacity of both
Causes:
(void) illicit, prohibited or declared by law as
void
(inexistent) lacks one or all of the requisites
of a contract
[CS-DOICE Art. 1409]
Cured by prescription Cured by prescription Not cured by prescription Not cured by prescription
Need not be ratified Can be ratified Can be ratified Cannot be ratified
Can be assailed by the injured or damaged
party or injured or damaged third person
Can be assailed by a contracting party (Art.
1397)
Can be assailed by a contracting party (Art.
1408)
Can be assailed by a contracting party or a
third person whose interest is affected (Art.
1421)
Assailed directly only Assailed directly or collaterally Assailed directly or collaterally Assailed directly or collaterally
Outline of provisions:

1380: Nature of rescissible contract
1381-1382: types of rescissible contract
1383: subsidiary character
1384: extent of rescission
1385: mutual restitution; no rescission
when the thing is legally possessed by a
third person
1386: no rescission in case of 1381 (1) and
(2) when the contract is approved by court
1387: preseumption (existence of fraud);
alienation by gratuitous title; alienation by
onerous title
1388: acquisition in bad faith (of things
alienated in fraud of creditors)
1389: prescriptive period
Outline of provisions:

1390: voidable contracts may be annullable
even if there is no damage to parties;
types of voidable contracts;
binding character unless annulled;
susceptibility to ratification
1391: prescriptive period
1392-1397: ratification
1398-1402: Mutual restitution
1398: mutual restitution
1399: exception to mutual restitution
defect is the incapacity of one
1400: loss of the thing through fault/fraud
of party obliged to return the thing but has
no right to institute proceeding, he shall
return the fruits and the value of the thing
1401: loss of the thing through fault/fraud
of the person who may institute the
proceeding (action for annulment is
extinguished)
1402: one does not restore the other
cannot be compelled to comply
Outline of provisions:

1403: types of unenforceable contracts
1405: ratification of contracts infringing
statute of frauds
1407: express or implied ratification by the
parent or guardian of one (when both are
incapacitated) same effect as if only one is
incapacitated;
Ratification by parent or guardian of both
contract is validated from inception
1408: cannot be assailed by third persons.
Outline of provisions:

1409: types of void or inexistent contracts
1410: imprescriptibility
1411: contracts that are both illegal and
criminal both parties have no action
against each other and shall be prosecuted
1412: contracts that are illegal but do not
constitute criminal offense
1413-1419: exceptions to in pari delicto
rule