CRISTINE JOY MARALIT

DIRECTIONS: Make a table comparing all defective contracts. Make the following as point of discussion:

RESCISSIBLE VOIDABLE UNENFORCABLE VOID CONTRACT

CONTRACT CONTRACT CONTRACT

They are the least infirm or defective.

They are valid because all the
essential requisites of a contract exist Voidable contracts Unenforceable contracts Void contracts that
but by reason of injury or damage to that are defective that lack authority, are caused by
WHAT IS one of the parties or to third because of their capacity, or both parties' illegality or lack of
DEFECT? persons, such as creditors, the methods of consent. essential elements.
contract may be rescinded. Thus, the consent.
defect is external. Until such contracts
are rescinded in an
appropriate proceeding, they remain
valid and binding upon the
parties thereto
They are the least infirm or defective.
They are valid because all the
essential requisites of a contract exist
but by reason of injury or damage to
one of the parties or to third
persons, such as creditors, the
contract may be rescinded. Thus, the
defect is external. Until such contracts
are rescinded in an
appropriate proceeding, they remain
valid and binding upon the
parties thereto
They are the least infirm or defective.
They are valid because all the
essential requisites of a contract exist
but by reason of injury or damage to
one of the parties or to third
persons, such as creditors, the
contract may be rescinded. Thus, the
defect is external. Until such contracts
are rescinded in an
appropriate proceeding, they remain
valid and binding upon the
parties thereto

They are the least infirm or defective.

They are valid because all the
essential requisites of a contract exist
but by reason of injury or damage to
one of the parties or to third
persons, such as creditors, the
contract may be rescinded. Thus, the
defect is external. Until such contracts
are rescinded in an
appropriate proceeding, they remain
valid and binding upon the
parties thereto

Rescissible contracts that are caused

by damages or lesion to one of the
contract parties or another third party.

(1) Those which are entered into by

guardians whenever Any party was Some common defenses
the wards whom they represent suffer under duress, to enforcing a contract A contract may be
lesion by more than one undue influence, or are: deemed void if the
fourth of the value of the things which was being LACK OF CAPACITY, agreement is not
are the object thereof; intimidated, DURESS, enforceable as it
 (2) Those agreed upon in coerced, or UNDUE INFLUENCE, was originally
representation of absentees, if threatened when MISREPRESENTATION, written.
WHAT ARE THE the latter suffer the lesion stated in entering into the NONDISCLOSURE,
GROUNDS? the preceding number; agreement. UNCONSCIONABILITY, Void contracts can
Those which are entered into by PUBLIC POLICY, occur when one of
guardians whenever the wards whom Any party was MISTAKE and the involved parties
they represent suffer lesion by more mentally IMPOSSIBILITY. is incapable of fully
than one fourth of the value of the incompetent (i.e., comprehending the
things which are the object thereof. mentally ill, below implications of the
the age of majority, agreement.
Those agreed upon in representation etc.) at the time
of absentees, if the latter suffer the that the contract
lesion stated in the preceding was entered.
number.
Any party made a
Any contracts relating to fraud of mistake as to their
creditors when the creditors cannot interpretation of the
collect what is owed to him or her in contract terms; or
any other manner.
There was fraud or
misrepresentation of
Anything in litigation if it was entered
material facts involved.
into by the defendant without the
knowledge or approval of the litigants
themselves or a competent judicial
authority.

Any other type of contract the law

declares subject to rescission.

valid and no legal effect, as a

enforceable until rule (except void
they’re annulled by can’t be enforced in marriages under
WHAT IS THE a competent court court without proper Articles 36 and 53.
 EFFECT? valid and enforceable until rescinded (Article 1390, last ratification; Inoperative
by a competent court (Article 1380) paragraph) until ratified. (Article
1405)

susceptible to
susceptible to co-validation but not of ratification (Article susceptible to ratification can’t be ratified
CAN IT BE ratification proper 1392) (Article 1495) (Article 1409, last
RATIFIED? paragraph)

only a contracting contracting parties,

WHO CAN party (principally or only a contracting party but also a 3rd
ASSAIL THE subsidiarily obliged (Article 1438) – 3rd person whose
CONTRACT? under the contract) persons cannot assail interest is directly
contracting parties, but also a 3rd – (Article 1397) affected
person who is prejudiced or damaged Exception: a 3rd
by the contract/creditors who are person who is
prejudiced prejudiced

WHAT IS THE
PRESCRIPTIVE
PERIOD FOR can be cured by can’t be cured by can’t cured by
FILING OF THE prescription; Action prescription; Action for prescription; Action
CASE? can be cured by prescription; Action for annulment recovery or action for for declaration of
for rescission prescribes after four prescribes after specific performance or nullity or the putting
 years (Article 1389) four years (Article for damages, for breach of the defense of
1391) of contract also nullity of the
prescribe. There, being contract does not
no specified period: it prescribe (Article
could be 10 years if the 1410)
basis of the action is a
written contract, or 6
years if unwritten.
(Articles 1144 and 1145)
HOW CAN THE can be attacked
CONTRACT BE both directly and can be attacked
ASSAILED, collaterally where can be attacked both both directly,
DIRECTLY OR direct attack only direct action is directly and collaterally; indirectly and
COLLATERALLY? needed either in Indirect attack is allowed collaterally
the complaint or as in the form of a defense
a counter claim