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DISTINGUISH

VOIDABLE CONTRACTS FROM RESCISSIBLE CONTRACTS.

Voidable and rescissible contracts may be distinguished from each


other in the following ways:
In a voidable contract
- the defect is instrinsic because it consists of a vice which vitiates
consent, whereas
In a rescissible contract
- the defect is external because it consists of damage or prejudice
either to one of the contracting parties or to a third person (Articles
1381, 1390);
In a voidable contract
- the contract is voidable even if there is no damage or prejudice,
whereas
In a rescissible contract
- the contract is not rescissible if there is no damage or prejudice;
In a voidable contract
- the annulability of the contract is based on law, whereas
In a rescissible contract
- the rescissibility of the contract is based on equity
-

Hence, annulment is not only a remedy but a sanction, whereas

In rescission is a mere remedy. Public interest, therefore,


predominates in the first, whereas private interest predominates in
the second;

The causes of annulment are different from the causes of rescission;


- In annulment it is susceptible of ratification, whereas
- In rescission is not (Articles 1381, 1390); and
In annulment may be invoked only by a contracting party, whereas
In rescission may be invoked either by a contracting party or by a third
person who is prejudiced.

DISTINGUISH

UNENFORCEABLE CONTRACTS FROM


OTHER DEFECTIVE CONTRACTS.

In general, unenforceable contract may be


distinguished from the other defective
contracts in the following ways:
a.FROM

RESCISSIBLE CONTRACTS

unenforceable
contracts
cannot
enforced by a proper action in court,

be

- cannot be assailed by third persons,


whereas rescissible contracts are valid and
enforceable unless they are rescinded.
- may be assailed by third persons who
are prejudiced.
b.FROM Voidable contracts
unenforceable
contracts
cannot
enforced by a proper action in court,

be

whereas voidable contracts are binding


and enforceable unless they are annulled
by a proper action in court.
FROM

VOID CONTRACTS

There are some unenforceable contracts


which are valid and, therefore, may produce
effects, although they cannot be enforced by
a proper action in court; void or inexistent
contracts, on the other hand, do not produce,
as a general rule, any effect whatsoever.
Hence, unenforceable contracts are
susceptible of ratification, whereas void
contracts are not.