Case Analysis on Chapter 8

Unenforceable Contracts
Dela Rea, Kimmi F.
Mapua Institute of Technology
School of Electrical, Electronics and Computer Engineering
Muralla St. Intramuros, Manila
kdelarea32@yahoo.com

This paper is a Case Analysis on Chapter 8

Unenforceable Contracts. The problems assigned to
Group 9 are in the following:
Problem 1
I, an insane person, entered into a contract with
M, a minor. What is the effect of ratification?
(a) By either; and
(b) By both, after becoming incapacitated

Problem 2
D(debtor) owes C (creditor) P10,000. T (third
person) orally promised to assume the obligation to D. Can
the promise of T be proved by the testimony of a witness
who was present when T made the same?

ARTICLES RELATED ON THE PROBLEMS

Article 1403
The following contracts are unenforceable, unless
they are ratified:

(1) Those entered into the name of another person by one

who has been given no authority or legal
representation, or who has acted beyond his powers;
(2) Those that do not comply with the Statute of Frauds
as set forth in this number. In the following cases, an
agreement hereafter made shall be unenforceable by
action, unless the same, or some note to
memorandum thereof, be in writing, and subscribed
by the party charged, or by his agent; evidence,
therefore, of the agreement cannot be received
without the writing, or a secondary evidence of its
contents:
a. An agreement that by its terms is not to be
performed within a year from the making
thereof;
b. A special promise to answer for the debt,
default, or miscarriage of another;
c. An agreement made in consideration of
marriage, other than mutual promise to
marry;
d. An agreement for the sale of goods, chattels,
or things in action, at a price not less than
Five hundred pesos, of such goods and
chattels, or the evidences, or some of them,
of such things in action, or pay at the time
some part of the 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 persons on whose
account the sale is made, it is sufficient
memorandum;
e. An agreement for the leasing for a longer
period than one year, or for the sale of real
property or of an interest therein;
f. A presentation as to the credit of a third
person.
(3) Those where both parties are incapable of giving
consent to a contract.

Article 1408
Unenforceable contracts cannot be assailed by third
person.

PROBLEMS WITH ANSWERS

Problem 1
I, an insane person, entered into a contract with
M, a minor. What is the effect of ratification?
(a) By either; and
(b) By both, after becoming incapacitated
(a) With either the insane person with the minor, the
ratification will not take effect because both parties
are incapable of giving. It was stated in Article 1403,
paar. 3 that those parties are incapable of giving
consent of contract are unenforceable.
(b) After becoming incapacitated, it will also fall under
Article 1403 par. 3 that both parties are incapable of
giving. Both parties to a contract are incapable of
giving consent, the contract in unforceable.

Problem 2
D(debtor) owes C (creditor) P10,000. T (third
person) orally promised to assume the obligation to D. Can
the promise of T be proved by the testimony of a witness
who was present when T made the same?
-No, because T cannot assail the contract between D
and C for being unenforceable under the Statute of Frauds. T
is a stranger to the contract. T can neither assail a contract
because of its unenforceability. It was stated in Article 1408,
unenforceable contracts cannot be assailed by third person.

Third person