civiL LAW Reviewer Chapter VI. DEFECTIVE CONTRACTS: Il, Voidable Contracts (Arts. 1390-1402) What | makes | Incapacity of one party to the | Consent vitiated by mistake, violence, defective? (Art a 300), contract intimidation, undue influence or fraud Effect _on the | Valid unt annulled by competent court (Art 1390 last par) Contract How to annul? 7. Directly, by an action for annulment 2. Indirectly, by counterclaim asking for positive action of the court to set aside the | contract ‘Annulment cannot proceed when: 1. the object of the contract is lost through fraud or deceit of the person with right to institute proceedings (art 1401 par 1); 2, the right of action is based upon the incapacity of any one of the contracting Parties and the thing is lost through the fault or fraud of the plaintiff (Art 1401 par 2) Who _can/eannot annul? (art 1397) 7, Parties who are obliged principally or subsidiarily 2. Persons who are capable cannot allege the incapacity of those with whom they contracted 3. Persons who exerted intimidation, violence, or undue intimidation, or employed | fraud, or caused mistake, cannot base their action upon these flaws of the contract When? (Art 1357) Within four years afier guardianship of minors or incapacitated persons ceases Within four years 1. After intimidation, violence or undue influence ceases 2. From the time of discovery of mistake or fraud Effect OF 7. Mutual restitution of the things delivered, along with fuls and price paid with | Annulment interest (Art 1398) 2. Damages to be paid by party who caused defect of the contract, by virtue of Asticle 20 and 21 of the Civil Code How 10 Cure | 1. Express (written or oral manifestation) or tacit ratification (acis or conduct) by | Defect? (Arts | injured party, or guardian of incapacitated person. | 1392 - 1396) ~ Ratification does not require the conformity of the contracting party ‘who has no right to bring the action for annulment (Art 1395) | UNIVERSITY OF THE PHILIPPINES COLLEGE OF LAW CONTRACTS Co 2070 AR OPERATIONS COMMISSIONMEE