NAME: GARCIA, ANGELA SHAINE C.

Section: BSA II – St. John

Question Rescissible Voidable Unenforceable Void/Inexistent

Defect is caused by
without or in excess of
Defect is caused by Defect is caused by
authority, or does not Defect is caused by
injury/ damage either to vitiation of consent or
What is the cause of the defect? comply with the lack of essential
one of the parties or to a one of the parties that
Statute of Fraud, or elements or illegality
third person is incapacitated
both parties are
incapacitated
Yes, damage is
Is damage necessary, if yes who necessary; No, damage is not No, damage is not No, damage is not
suffers the damage? One of the parties or necessary necessary necessary
third person
Yes, it is curable by Yes, it is curable by No, it is not curable by No, it is not curable
Is it curable by prescription?
prescription prescription prescription by prescription
Valid and enforceable Valid but
Valid and enforceable Do not, as a general
What is the legal effect? (validity, until they are annulled unenforceable in court
until they are rescinded rule produce any
enforceability) by a proper action in unless they are cured
by a competent court legal effect
court or ratified
Annulment, Declaration of
What is the legal remedy? Rescission Ratification, Ratification Absolute Nullity or
Confirmation Inexistence
Attacked not directly
Nature of action in availing the but by defence of Attacked directly or
Attacked directly only Attacked directly
remedy? (direct or indirect action) unenforceability of indirectly
contract
Who can file the action for remedy? The action for rescission Party entitled to bring Party entitled to bring If the contract is

may be brought by:
(1) The injured party or
the defrauded
creditor;
(2) His heirs, assigns, or
Include all person who can avail of
the remedy successors in interest;
or
(3) The creditors of the
above entitled to
subrogation
What is the effect if the legal remedy Reparation of damages
by means of the
was availed of by the party who has
restoration of the things
the right to do so?
to their condition in
which they were prior to
the celebration of said
contract.
Can it be ratified? If yes, who can No, it need not be ratified
ratify?
an action for remedy:
(1) Person whose
name the contract
illegal or void, even
an action to annul: was entered into
a third person may
(2) By party against
(1) Plaintiff (must have avail of the defence
whom the contract
interest in the of illegality or set up
is being enforced its nullity as long as
contract)
(2) Victim, and not the (3) By parents or his interest is
party responsible guardians of both directly affected by
for the defect parties the contract.
(4) Both parties after
(re)gaining
capacity to act
Restoration of the
Once ratified,
things to their original Do not, as a general
unenforceable
position in which they rule produce any
contracts may then be
were before the legal effect
enforceable in court.
contract was executed.
Yes, it can be ratified Yes, it can be ratified No, it cannot be
by: by: ratified
(1) The guardian or the
injured party (1) Person whose
himself provided he name the contract
is already was entered into
incapacitated. (2) By party against
(2) Party whose whom the contract
consent is vitiated is being enforced
in case the contract (3) By parents or
is voidable on the guardians of both
 parties
(4) Both parties after
ground of mistake
(re)gaining
capacity to act
The action for
annulment shall be
brought within four
years. This period shall
begin:

The action to claim (1) In case of

rescission must be intimidation,
commenced within 4 violence or undue
years from the date the influence, from the
contract was entered into time the defect of
except: the consent ceases
What is the prescriptive period of the (2) In case of mistake
(1) For persons under or fraud, from the No prescription No prescription
remedy?
guardianship: period time of the
shall begin from the discovery of the
termination of same
incapacity (3) And when the
(2) For Absentees, from action refers to
the time the domicile contracts entered
is known into by minors or
other incapacitated
persons, from the
time guardianship
ceases.

What are rights of the innocent party?  `A ward has the right  The innocent party  When a contract is
to rescind the sale by has the right to enforceable under
proper action in court annul or not to the Statute of  If only one is at
 upon reaching the age annul a voidable Frauds, and a fault, the party
of majority if lesion contract. public document is may demand the
is more than one  Innocent party has necessary for its return of what he
fourth the right not to be registration in the has given
 An absentee has the allege of incapacity Registry of Deeds, without the
right to rescind the from those they the party may avail obligation to
sale by proper action contracted with himself of the right comply with his
in court if lesion is  The party has the under Article 1357 promise or
more than one fourth right to restore to  Injured party may undertaking to
 The innocent party each other the prove the promise the other.
may protect his right things which have by oral evidence in  The party who
by filing a notice of been the subject an action for entered into an
lis pendens if the matter of the damages illegal contract
third party who is in contract, with their may be allowed
the legal possession fruits, and the price to recover the
of the land is in good with its interest, money or
faith during the except in cases property
pendency of litigation provided by law if delivered,
 If the lessor or the obligation has been however only in
lessee should not annulled. the interest of
comply with  Incapacitated or justice so
obligation set forth, Disadvantaged demands.
the aggrieved party Person is generally  The party is
may ask for the favoured by Law; permitted to
rescission of the No restoration is recovery,
contract and required of him provided that the
indemnification for unless it is due to agreement is not
damages other reason illegal per se but
 The vendee may is merely
exercise the remedy prohibited
of rescission when  If the contract is
the lack in the area of still on its
the real estate sold be executory stage,
 not less than one-
the party has the
tenth of that stated
right not to be
 Injured party can
compelled to
choose between
fulfil his
fulfilment and
respective
rescission, with
promise
payment of damages
in either case.
What are the rights of the guilty  The guilty party has  The guilty party has  When a contract is  Interest paid in
party? the right not to be the right to enforceable under excess of the
compelled at the time disregard his the Statute of interest allowed
he is insolvent; contract by the Frauds, and a by the usury
 included in the simple expedient of public document is laws may be
obligations referred refusing to give his necessary for its recovered with
to are not only those conformity registration in the interest thereon
that have not yet  Guilty party has the Registry of Deeds, from the date of
become due and right not to be the party may avail the payment.
demandable but also allege of incapacity himself of the right  If the contract is
those which cannot from those they under Article 1357 still on its
legally be demanded contracted with executory stage,
such as natural  The party has the the party has the
obligations and those right to restore to right not to be
that have prescribed each other the compelled to
things which have fulfil his
been the subject respective
promise
matter of the
contract, with their
fruits, and the price
with its interest,
except in cases
provided by law if
obligation has been
 annulled.

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