A. Among the statements the 3rd statement is a lie. Why?

Because it is expressly prohibited or declared

void by law.

Contracts without cause or object are not enforceable.

Contracts which are absolutely simulated or fictitious are void.

Contracts regarding sale of property between husband and wife are enforceable.

The given statements also are according to ARTICLE 1409, which states the instances of void contracts

Instances of Void Contracts:

1. Those who cause, object or purpose is contrary to law, morals, good customs, pubic order or public
policy; A contract that is contrary to any law, morals, good customs, public order or public policy
are considered void.
2. Those which are absolutely simulated or fictitious – this is related to Article 1346, wherein
simulation of a contract is the act of deliberately deceiving others by pretending there is this
agreement, where in fact this agreement does not exist or the real agreement is concealed.
3. Those whose cause or object did not exist at the time of the transaction; What is being described in
here are those which are physically or legally impossible of perfection or which cannot come into
existence at the time of perfection of the contract.
4. Those whose object is outside the commerce of men; like clings of public ownership or things that
are common to everybody such as rain or sunlight
5. Those which contemplate an impossible service; may it be physically or legally impossible
6. Those where the intention of the parties relative to the principal object of the contract cannot be
ascertained; For example, MJ sold a car to RM and MJ has many cars and it cannot be determined
which car is subject for sale. In this case, contract should be void and it is as if the parties have not
entered any contract at all.
7. Those expressly prohibited or declared void by law. Like contracts upon future inheritance except in
cases expressly authorized by law and regarding sale of property between husband and wife.
B. Among the statements the 2nd statement is a lie. Because Void and inexistent contracts cannot be
ratified.

Void and inexistent contracts are not enforceable from the very beginning, regardless of the intentions
of the parties.

Void and inexistent contracts can be ratified.

The right to set up the defense for the declaration of void and inexistent contracts’ inexistence does not
prescribe.

Characteristics of a void or inexistent contract

1. Generally, it produces no force and effect whatsoever;

2. It cannot be ratified – as what I have mentioned a while ago. Why? Because void contracts are
as if never existed.
3. The action or defense to set up the defense of illegality cannot be waived.
4. The right to set up the defense for the declaration of its inexistence does not prescribe. Unlike
rights where in the passage of time can expire or prescribe or there is only a time period where
it can be enforced, in case of void contracts the action to declare that it is void or inexistent does
not prescribe.
5. The defense of illegality is not available to third persons whose interests are not directly
affected.
6. It cannot give rise to a valid contract. In other words there can be no novation if there is no valid
contracts, because there is nothing to novate.