1. When do contracts become recissible?

 The contracts can only be rescissible when all the essential elements exists but by reason of
economic injury or damage to one of the parties or to third persons, such creditors, the contract
may be rescinded and therefore legally effective.

2. What are examples of contract that the law declares as recissible?

 Under the Article 1381, first, a contracts which entered into by guardians whenever the wards
whom they represent suffer lession by more than one-fourth of the value of the things which
are the object thereof. Second, Those agreed upon in representation of absentees, if the latter
suffer the lession stated in the preceding number. Third, Contracts undertaken in fraud of
creditors. Fourth, Contracts which refer to things under litigation and all other contracts
specially declared by law to be subject to rescission.

3. Benjie is the guardian of Paulo, a minor. When Paulo went to the province, Benjie sold Paulo’s parcel
of land worth P1,000,000 to Don Ramon for only P650,000. The court authorized the contract of sale. Is
the contract recissible or not? Why?

 Yes, According to Article 1385, when the the contracts rescinded, the parties must return to
each other (1) the object of the contract with its fruits and (2) the price thereof with legal
interest. It can be carried out only when he who demands rescission can return whatever he
may be obliged to restore.

4. For persons under guardianship and for absentees, when shall the action to claim recission
commence?

 According to Article 1389, the action to claim rescission must be commenced within four years.
And For persons under guardianship and for absentees, the period of four years shall not begin
until the termination of the former's incapacity, or until the domicle of the latter is known.