UNENFORCEABLE VOID OR INEXISTENT
RESCISSIBLE CONTRACTS VOIDABLE CONTRACTS
(Art. 1380-1389)
Contracts that are valid until
DEFINITION
rescinded
Rescission or indemnity for
REMEDIES
damages
PRESCRIPTIVE The action for filing rescission must
PERIOD not have prescribed shall take place within four years
I. Contracts entered into in I.
behalf of wards who suffer
lesion by more than ¼ of the II.
value of his property;
Contracts with absentees
suffering in lesion as stated
above
II. Economic injury or damage
GROUNDS to one of the parties or an
or outside party
REQUISITES III. Contracts undertaken in fraud
of creditors
IV. Capacity of party asking for
rescission to return what he is
obliged to by the contract
V. Object of contract illegally in
possession of a third person
acting in good faith
(Art. 1390-1402)
Contracts that are valid until
annulled by an injured party
Annulment or Ratification
The action for filing annulment
Incapability of one of the I.
parties in giving consent
Given consent is by
mistake, undue influence,
violence, intimidation, or II.
fraud
III.
CONTRACTS CONTRACTS
(Art. 1403-1408) (Art. 1409-1422)
Contracts that are valid but Contracts that are invalid from the
unenforceable until ratified very beginning
Declaration of nullity or
Ratification
annulment
The action for recovery in case The action for declaration of
of partial or full performance inexistence does not prescribe
Contract being entered I. Its essential requisites are
into in behalf of another contrary to/void by law,
without authority or an good customs, and public
action beyond his power order or public policy
Failure to act in II. Absolutely simulated or
accordance with the Fictitious contracts
Statute of Frauds III. The cause or object of the
Both of the parties are contract is inexistent or is
incapable of giving outside the commerce of
consent men
IV. Contracts considering an
impossible service
V. Uncertainty of the intention
of the intentions relative to
the principal object of the
contract
 I. A, a minor, inherited her I.
now deceased parents’ house
& lot worth ₱150,000. His
guardian, B, to the prejudice II.
of A, sold the house and lot
to C for ₱100,000.
II. The house of A was burned
by the result of B’s actions.
III. Creditor B cannot recover
A’s debt who acted with
Examples fraud on his part and B is left
with no other legal remedy.
IV. In a contract of sale, A is
able to return the money he
got from A together with the
interest.
V. A sold B (minor)’s land to C
who is acting in good faith
for ₱100,000 instead of the
original price of ₱200,000.
Diagnosed with dementia, I.
A entered into a contract
with B.
A wants to sell his computer
to B but B doesn’t want to
buy it. A then threatens to II.
kill B if he doesn’t buy it. B
entered into the contract.
III.
In a contract of mortgage I. A agreed to enter into a
between A and B, agent C contract regarding illegal
made an unreasonable drugs with B.
action without the II. Upon a contract of
authority of A. mortgage, its price
A and B orally agreed to appeared to have been paid
enter into a sale of but the truth is it has never
property with A as the been paid.
owner and B as the buyer III. B entered into a contract
Contract of sale between with A as to selling of a
A, an insane person and “thing”.
B, a minor. IV. A entered into a contract
with B to build B’s house
in just two hours.
V. A owns many cars and he
sold his car to B. However,
it is not determined as to
which car is the one A sold.