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IV, TITLE II: CONTRACTS SC: If incapacitated is merely to be availed of


CHAPTER 7: VOIDABLE CONTRACTS as a defense in enforcement of contract =
VOIDABLE CONTRACT prescription does not apply; it is
Those in which all of the essential elements for UNENFORCEABLE.
validity are present, but the element of consent Both positive action and defense may be
is vitiated by either lack of legal capacity of one availed
of the contracting parties, or by mistake, Prescription is a way of ratifying or curing a
violence, intimidation, undue influence or fraud defect
It is valid until annulled by a competent court Promissory note by mother instituting her
two sons as solidary debtors. The sons were
Distinguished from Rescissible Contracts only 18 and 19 years old [21 years old was
VOIDABLE RESCISSIBLE the age of majority back then] only after
Petition for annulment Action for rescission more than 4 years from the time one of the
Primary action; avail supplemental brothers is 21 when the creditor tried to
immediately enforce the obligation against him; the son
Defect is intrinsic Defect is external put up a defense not to annul because there
Voidable even if there is Should have damage or was no petition to annul = voidable. C did
no damage or prejudice prejudice not file any action UNTIL HE WAS 26. C tried
Based on the law Based on equity to enforce it against him. Brother invoked
Not just a remedy but a Mere remedy defense of incapacity, SC upheld the defense
sanction and excused him from the payment.
Involves public interest Involves private interest SC: 4 year period applies only in cases of
positive action for annulment- not defense.
CAUSES: This is an addition to one of the causes of
1. When one of the contracting parties is UNENFORCEABILITY OF CONTRACTS.
incapacitated in rel to Art. 1327 [ if both are Estoppel was first applied in this case. Req:
incapacitated, unenforceable] 1. Positive misrepresentation ; 2. Physical
2. Consent vitiated by vices of consent attributes must show that he is a minor

Note: Vitiated consent is different from total Is it subject to ratification? YES.
Article 1392. Ratification extinguishes the action to annul a voidable
absence of consent. Total absence would lead to a contract. (1309a)
void contract Article 1393. Ratification may be effected expressly or tacitly. It is
understood that there is a tacit ratification if, with knowledge of the
reason which renders the contract voidable and such reason having
Prescription [Art. 1391] ceased, the person who has a right to invoke it should execute an act
General rule 4 years which necessarily implies an intention to waive his right. (1311a)
Article 1394. Ratification may be effected by the guardian of the
When to reckon: incapacitated person. (n) Article 1395. Ratification does not require
o Incapacitated- upon acquiring age of the conformity of the contracting party who has no right to bring the
majority action for annulment.
(1312)
o Fraud- upon discovery Article 1396. Ratification cleanses the contract from all its defects
o Violence, intimidation, undue from the moment it was constituted. (1313)
influence, when the forces cease Ratification, confirmation, acknowledgment
Ratification or confirmation is the act or means
Capacity by virtues of which efficacy is given to a contract
Case: Braganza v. De Villa Abrille [GR NO. L-12471 , which suffers from a vice or of curable nullity.
April 13,1959] Requisites:
Prescription period of 4 years 1. Contract should be tainted with a vice which
Application for action for annulment is susceptible of being cured
JTVS | Obligations & Contracts | 1M | Dean Ulan Sarmiento 1
2. Confirmation should be effected by the Exceptions:
person who is entitled to do so under the Article 1399. When the defect of the
law contract consists in the incapacity of one of
3. It should be effected with the knowledge of the parties, the incapacitated person is not
the vice or defect of the contract obliged to make any restitution except
4. Cause of nullity or defect should have insofar as he has been benefited by the
already disappeard thing or price received by him. (1304)
Those which may be used for
Binding Efficacy: valid until annulled support
Article 1400. Whenever the person obliged
Assailabilty by the decree of annulment to return the
General rule : may be assailed only by a thing can not do so because it has been lost
party; not by a third person through his fault, he shall return the fruits
Exception: a person prejudiced in his rights received and the value of the thing at the
Case: Teves v. Peoples Homesite & Housing time of the loss, with interest from the same
Corp et al. GR No. L 21498, June 27, 1968 date. (1307a)
o SC: person who is not a party to a Should not be due to the fault of
contract may exercise action for person who must return
annulment if prejudiced in his right With interest
with respect to one of the Who must return? May be the
contracting parties and can show petitioner or defendant
detriment which could positively Need to return value and interest
result to him from the contract in Loss without fault : obliged to pay
which he had no intervention value but no interest
o Eg: heir without actionable wrong to
descendant Article 1401. The action for annulment of
o 88 y/o donating to a 22 y/o contracts shall be extinguished when the
paramour thing which is the object thereof is lost
o Age is not incapacity; only minority. through the fraud or fault of the person who
No maximum age to capacity. But has a right to institute the proceedings.
subject to being appointed of a If the right of action is based upon the
judicial guardian. incapacity of any one of the contracting
parties, the loss of the thing shall not be an
Who may assail? obstacle to the success of the action, unless
Incapacitated person said loss took place through the fraud or
Person whose consent was vitiated fault of the plaintiff. (1314a)
If loss due to fault of person who has
Effects of Annulment right to file for annulment, action is
Restore to each other things of the contract, extinguished. Same rule even if the
fruits plaintiff is incapacitated person
Article 1398. An obligation having been annulled, the
contracting parties shall restore to each other the things

which have been the subject matter of the contract, with Loss due to a fortuitous event:
their fruits, and the price with its interest, except in cases If object cannot be return because of
provided by law.
In obligations to render service, the value thereof shall be
a fortuitous event, contract may still
the basis for damages. (1303a) be annulled. Plaintiff shall pay the
o similar to a contract rescinded value of the thing at the time of the
o return to status quo loss no interest.

JTVS | Obligations & Contracts | 1M | Dean Ulan Sarmiento 2


Defendant must suffer the loss
because the ownership still belongs
to him
Apply res perit domino and res perit
creditori

JTVS | Obligations & Contracts | 1M | Dean Ulan Sarmiento 3