 Rescissible Contracts

 Guardian who represent ward, lession of more than ¼ of the

value of the thing
 In representation of absentee, lession of ¼
 In fraud of creditor who is unable to collect
 Things under litigation, entered into by defendant without
approval of litigants and court
 Payment made in state of insolvency where debt not yet due
o Those which may be declared by law

 Partition (1098)
 Result of deterioration (1189)
 Unpaid seller (1526 and 1534)

 Badges of Fraud

o o Cause or consideration is inadequate

o o Transfer made after suit has begun or pending
o o Sale on credit by an insolvent debtor
o o Evidence of large indebtedness or complete insolvency
o o Transfer of all or nearly all of debtor properties
o o Between father and son, with any of above
circumstances
o o Failure of vendee to take exclusive possession

Voidable Contracts
 Where one party is incapable of giving consent to a contract

 Where the consent is vitiated by mistake, violence, intimidation,

fraud, undue influence

Convalidation
 Prescription (Four years)
 From time incapacity ceases
 From discovery of such fraud or mistake
 Ratification or confirmation
 Loss of the thing by thru the fault of the person who has right to
annul

Effects of annulment of Voidable Contract

– – If not consummated, then parties are released from obligation
– – If consummated, parties are to restore to each other what they have
given, with fruits and interests, plus damages
– – If to do or not to do, there will be apportionment of damages
––Incapacitated party not obliged to make restitution except for what he
was benefited

Unenforceable Contracts
 Those entered into in the name of another person by one who has
been given no authority or legal representation or who has acted
beyond his powers

 Those not complying with Statute of Frauds.

Statute of Fraud
––Purpose is to prevent fraud, not to aid the commission of fraud
– – Basic and fundamental principles
 Applies only to executory contracts
 Cannot apply if action is not for damage bec of violation of
agreement or for specific performance
 Exclusive
 May be waived
 Personal defense
 Contracts are not void
 Rule of exclusion
 Concerns admissibility of evidence, not credibility
 Does not apply if action is to claim reformation

– – Following must be in writing or in some notes or memorandum:

– – Agreement not to be performed within a year from the making
thereof
– – A special promise to answer for debt, defaults or miscarriage of
another
– – Agreement in consideration of marriage
– – Sales of goods, chattels, things above P500
– – Lease of more than one year
––Representation as to credit of another

Void Contracts
– – No concurrence of offer/acceptance
– – Cause, object, purpose contrary to law, morals, good customs, public
order, or public policy
– – Absolutely simulated or fictitious
– – Cause or object did not exist at the time of the transaction
– – Object outside commerce of men
– – Impossible service
– – Intention of the parties relative to principal object cannot be
ascretained
– – Prohibited or declared void by law

Estoppel

 Estoppel in pais - by one’s conduct or acts, representatioons,

admissions or silence, culpable negligience induces another to believe
certain facts to exist and such other rightfully relies and acts on such
belief.

 Estoppel by Deed - A party to a deed, are precluded from aasserting

against the other party to the deed any right or title in derogation of
the deed, or from denying any material fact asserted therein.

 Estoppel by Record - A party precluded from denying the truth of

matters set forth in a record, whether judicial or legislative.

Estoppel by Laches
 Estoppel by Laches
 Failure or neglect to enforce a right for an
 Unreasonable and unexplained length of time
 Despite knowledge or notice

EXTINCTIVE PRESCRIPTION
(Arts. 1139-1155)

40 days Redhibitory action based on defects of

animals.
6 months (a) (a) Action for reduction of price for
rescission in case of breach of sale of real
estate, either with a statement of its area
at a certain price for a unit of measure or
number.
(b) (b) Action for warranty against hidden
defects of thing sold.
1 year (a) (a) Action by husband against wife to
impugn child’s legitimacy if husband is in
the same place as wife.
(b) (b) Action for revocation of donation for
acts of ingratitude.
(c) (c) Action for forcible entry or unlawful
detainer.
(d) (d) Action for defamation.
 (e) (e) Action for rescission or for damages if
immovable sold is encumbered with non-
apparent burden or servitude.
2 years Action to impugn child’s legitimacy if
husband is in the Philippines but not in
same place as wife.
3 years Action to impugn child’s legitimacy if
husband is abroad.
4 years (a) (a) Action for revocation or reduction of
donation based on supervening birth,
appearance or adoption of a child.
(b) (b) Action for revocation of donation
based on fulfillment of condition.
(c) (c) Action for recovery of movable
(replevin) if possessor is in good faith.
(d) (d) Action upon injury to rights of
plaintiff.
(e) (e) Action upon a quasi-delict.
(f) (f) Action for rescission of rescissible
contracts.
(g) (g) Action for annulment of voidable
contracts.
5 years (a) (a) Action for legal separation.
(b) (b) Action for annulment of marriage
based on
1. Lack of parental consent.
2. Fraud.
3. Force, intimidation or undue influence.
4. Physical incapacity and afflicted with a
sexuality transmissible
disease.
(c) (c) Action to claim legitimacy if child
should die during minority or in state of
insanity.
(d) (d) Action for declaration of incapacity of
heir.
(e) (e) Action for warranty of solvency of
debtor if credit is assigned to co-heir
during partition.
(f) (f) All other actions whose periods are
not fixed by law.
6 years (a) (a) Action upon oral contract.
(b) (b) Action upon a quasi-contract.
8 years Action for recovery of movables (replevin)
if possessor is in bad faith.
10 years (a) (a) Action for recovery of possession of
immovables (accion publiciana) if real
right of possession is lost.
(b) (b) Action for recovery of ownership of
immovables (accion reinvindicatoria) if
possessor is in good faith.
(c) (c) Action upon a mortgage contract.
(d) (d) Action upon a written contract.
(e) (e) Action upon an obligation created by
law.
(f) (f) Action upon a judgment.
Lifetime (a) (a) Action to claim legitimacy.
(b) (b) Action to obtain declaration of
illegitimate filiation.