BASIS RESCISSIBLE VOIDABLE UNENFORCEABLE VOID /INEXISTENT

Origin of the defect Economic damage or lesion to Incapacity of one Entered without authority or Illegality (void) or absence of
either one of the parties or to of parties to give in excess thereof; non- any of essential requisites of a
3rd persons; declaration by consent or vitiated compliance with Statute of contract (inexistent).
law. consent. Frauds; incapacity of both
parties to give consent.
Necessity of Damage/ Suffered by – either one of As to the other Not necessary Not necessary
prejudice parties or 3rd person. contracting party -
not necessary.
Curable by Curable Curable Not curable Not Curable
Prescripiton
Legal effect Valid & legally enforceable Valid & legally Inoperative until ratified; not None
until enforceable until enforceable in court without
Judicially judicially annuled. proper ratification
rescinded.
Remedy Rescission or rescissory action. Annulment of Only personal defense Declaration of nullity of
contract. contract.
Nature of action Must be a direct action. Direct action Indirect attack allowed Can be attacked directly or
needed. indirectly.
Who can file the GR: Contracting party; Contracting party Contracting party 3rd persons cannot file unless
action XPN: Defrauded Creditors their interest are directly
affected.
Susceptibility of Susceptible but not of Susceptible Susceptible Not Susceptible
ratification ratification proper.
Susceptibility Action for rescission prescribes Action for annulment Action for recovery; specific Action for declaration of nullity
prescription after 4 years. prescribes after 4 performance or damages or putting of defense of nullity
years. prescribes does not prescribe.
(10 years if based on a
written contract; 6 years if
unwritten).