Concepcion, Denise G.

1G
Obligations and Contracts
Comparison of the Different Kinds of Defective Contracts

COMPARISON VOID VOIDABLE RESCISSIBLE UNENFORCEABLE

Legal Status Does not exist and cannot Valid, binding and Valid, binding and Valid but cannot be sued
produce legal effects. produce legal effects produce legal effects in court.
unless annulled. unless rescinded,
Nature of Defect Generally, the defect has The defect has something The defect has something The defect has something
something to do with the to do with consent. to do with economic to do with the capacity of
cause or object. Consent is either not damage or lesion. both parties, lack of
The object is illegal, intelligently given or not authority of the party
immoral, beyond the voluntarily or freely entering into the contract
commerce of man, given or not consciously or with the form of the
inexistent, etc. or spontaneously given. contract.
Can it be ratified? Cannot be ratified Can be ratified. Cannot be ratified. Can be ratified.
because it does not exist Ratification cleanses the Rescission can no longer Ratification may happen
and hence, there is contract from all of its be a remedy in cases: by failure to object to
nothing to ratify. defects. 1. The party seeking presentation of oral
It may be done expressly rescission can no longer evidence or by
or tacitly. return what he received. acceptance of benefit
It may be effected by the 2. The object is already in under such contract if it
guardian of the the possession of a third is already partially or
incapacitated person. person. totally executed such as
Ratification extinguishes 3. Other legal remedies when the price is already
the action to annul the are available. partly paid or when the
contract. 4. The period to rescind goods sold are partially
had already prescribed. or fully delivered.
Prescriptive period of The legal remedy is to The legal remedy is to The legal remedy is to Inapplicable because
legal remedy have the contract annul the contract. rescind the contract. unenforceable contracts
 declared “null and void”. This action to annul must The action to claim cannot be sued upon or
This legal remedy does be filed in court within rescission must be filed enforced in court.
not prescribe. four years counting from within four years
It can be filed anytime in the time: counting from the time:
court. 1. Intimidation, violence 1. The incapacity of the
or undue influence minor ceases.
ceases 2. The domicile of the
2. The discovery of the absentee is discovered.
mistake of fraud.
3. Guardianship ceases.
Kinds Article 1409 Article 1390 Article 1381 Article 1403
1. Contracts whose cause, 1. Contracts where one of 1. Contracts entered into 1. Both parties are
object or purpose is the parties has no legal by guardians whenever incapacitated.
contrary to laws, morals, capacity. their wards suffered 2. Unauthorized
good customs and public Exception: lesion of more than ¼ of contracts entered into in
order or public policy. a. in case of sale of the value of the things the name f another
2. Contracts which are necessaries and the which are the object. person without authority
absolutely simulated or buyer is a minor 2. Agreed upon in or beyond his authority.
fictitious. b. if the incapacitated representation of the 3. Not in writing or
3. Contracts the object or person is partly insane absentee, if the latter covered by the Statutes of
cause which do not exist and he entered into a suffered lesion of more Fraud such as:
at time of the transaction. contract during the time than ¼. a. verbal sale of land
Exception: for sale, the of his lucid interval 3. Undertaken in fraud of b. verbal sale of movable
time of delivery is 2. In case consent is creditors if the latter price of which is not less
considered. vitiated by violence, cannot in any other than P500.
4. Object is outside the intimidation, deceit, manner collect the claims c. lease agreement for a
commerce of man. error or undue influence. due. longer period than one
5. Contemplate an a. Violence or force 4. Refer to things under year
impossible service. b. Intimidation or threat litigation entered into by d. agreement by which its
6. Intention of the parties or duress the defendant without term is not to be
cannot be ascertained. c. Deceit or fraud the knowledge of performed within one
7. Expressly prohibited d. Error or mistake approval of the litigants year
or declared void by law. e. Undue influence or of the court. e. a special agreement to
Note: if a contract was 5. Other contracts answer for the debt of
entered into reluctantly declared by law as another
by a party against his rescissible. f. agreement made in
good sense and consideration of
judgment, the contract marriage other than
would still be perfectly mutual promise to marry.
valid. g. representation as to
the credit of another