DEFECTIVE CONTRACTS

Rescissible Contracts – valid sya, lahat ng essential requisites in the contracts, exist.

But for some reason, economic injury, damageor parties or the 3 rd person like
creditors, yung contracts is pwede ma rescind, andon yung detect yung reason dahil sa economic injury
such as lesion

Enumeration

1)
WARD – Person who is under guardianship kasi he’s incapacitated (minor)

EXAMPLE #1

Kunware si Allen is the guardian of Shane, isang minor, tapos binenta ni allen yung property ni
shane na dapat worth 1M, pero binenta nya lang sa halagang 800,000 pesos, hindi marerescind or
mababawi yung lesion is not more than one-fourth of the value, so hindi pa sya pasok dito sa number 1.
Pero kapag more than one-fourth, kunware binenta lang ni allen ng 500,000 pesos, yung lesion or
damage or injury to the party, so yung kay shane is more than ¼, kaya pwede mabawi ni shane yung
binenta ni allen ng knyang property.

Bruce’s parent died. So he inherited their mansion na worth 40 M, pero minor plang si bruce
kaya na appoint si Alfred bilang guardin nya. Later on, binenta ni Alfred yung mansion on behalf of bruce
for 29 M. In this caee. Alfred sold the mansion for a price lower by more than ¼ of its market value, to
the prejudice of bruce. So bruce cabn ask for the rescission of the sale.5

2)

ABSENTEES – those who disappear from his or her domicile and his whereabouts being
unknown without leaving an agent to administer his property.

RULE: if the absentees suffer lesion by more than ¼ of the value of the property which is the
object of the contract. It gives or it entitles the absentee

EXAMPLE #2 Bruce, already of legal age, disappeared and was declared an absentee. Alfred was
appointed as his representative. Taspos I bruce ay may sasakyan wort 4M, tapos binenta ni Alfred for
only 2,900,000. In this case, binenta ni Alfred yung car for a price lower than ¼ of its market value, to the
prejudice of bruce.

3) Nag enter ka ng contracts in to defraud (illegally obtain money) your creditor, the creditor has
the right na bawiin yung contract

EXAMPLE #3

Allen ay may utang kay Shane na 1M, tapos to defraud Shane, kasi ayaw nya makuha, o Nakita
na nya na if hndi sya makakapag bayad, mag fafile ng case sa knya si Shane, and maaring maattach or
kunin yung property as a payment dun sa uatng kay shane, so ang ginawa nya ay kunware yung lupa ay
ibinenta nya kay hazel, ginawa lang nila yun to defraud Shane, so pwede ma rescind ni Shne ang contract
between allen and hazel, dahil it was done to defraud her.

4)

EXAMPLE: Allen files a case against Shane for the recovery of a diamond ring, so pending litigation,
Binenta ni Ganda kay Cara yung diamond ring without the approval of Pogi and the court.

The sale of diamond ring by Shane in favor of Cara is a rescissible contract, which is pwedeng bawiin.

Dapat yung bagay is under litigation, it means merong pending case from the moment na nagfile or
nareceive nung defendant yung summon, at from the moment na natanggap ni Shane yung summon na
may case pal ana finile si Allen against sa knya, for the recovery of the diamomnd ring, it considered
ligitation.

VOIDABLE CONTRACTS - valid until annul

Mutual restitution – In fraud of Allen’s creditor, binenta nya yung lupa nya in favor of Shane to defraud
yung creditor

Tapos si shane, she already throw legal possession, doon sa lupa ni allen, may the sale in favor of shane
be rescinded?

It depends whether shane is in good or bad faith, if dhane is in good faith, then gere right is protected, if
not, mabbawi yung contact

If the creditor cannot rescind the contract, what is their remedy? If acted ijnn good faith

Indemnity for damages may be demanded naman,

An example of a voidable contract is a contract that involves a minor. Sometimes children enter into
contracts that they don't fully understand.
Kunwari bumili ka ng life insurance sa isang agent na sianbi sayo na your new policy will automatically
transfer sa iyong anaka kapag namatay ka. Pero yung anak mo ay hindi nakalista as beneficiaries sa
polivy mo at hindi rin eligible for coverage under your policy based sa mga terms. So, pwede ka mag
demanda para maging void yung contract.

RATIFICATION –

EXAMPLE, Si kyla ay isang minor, at bumili sya ng lupaa and after reaching the age of maturity, binenta
nya yung lupa kay Shane. Dito, hindi na sya pwede mag annul ng contract kasi incapacitataed nung time
na binenta, she waved his right to file the annul, niratified nya yung knilng kontrata.

INFORCEABLE CONTRACTS – CONTRACTS KUNG SAN DI PWEDE IENFORCE BY REASON OF DEFECTS, NOT
UNLESS THEY ARE RATIFIED ACC TO LAW. MAS DEFECTIVE KAYAS VOIDABLE, VALID, PWEDE
MAIENFORCE, PERO PWEDE MAPAWQLANG BISA.
DI NPWEDE IENFORCE, RATIFIED FIRST PARA MAIENFORCE SA COURT

EXAMPLE: if alang authority from allen, binenta ni hazel yung sasakyan ni allen in the name of pogi to
Brent. So contract is authorized, snce wala syang legal effects unless ni ratified ni Allen ang pagbebenta
ni hazel,how? express through words (verba or writtenor or throught the conduct)

 For example, if an employer forces an employee to sign a contract

that prevents him or her from taking sick leave, it would be considered
unenforceable.

Void contracts

Voidable – pede maratidfied, si void hindi

Produces effects until annulled. Void, it produces no effects at all

2. the contract is void for lack of consent. (walang plano/ walang agreement or walang intention to
bound)

For example, an agreement between drug dealers and buyers is a void agreement simply because
the terms of the contract are illegal. In such a case, neither party can go to court to enforce the
contract. 

Kunware si A ay nagbenta ng shabu kay C, worth 1m, si c ay nagbayad lang ng 100,000 tas hindi diniliver
yung lahat ng yon na napagkasunduan nila,

Kunware si A ay nagbenta ng shabu kay C, hindi alam ni C na illegal drugs sya, worth 1m, si c ay
nagbayad lang ng 100,000, dahil si c ay innocent party, then she can claim yung 100,000 if hindi pa
nagbabayd, she cannot be compelled to pay.

KUNWARE, yung homeowner at yung contractor ay nag sign ng agreement na iremodel yung bahay.
Kunware sa kontrata naka state don na the homeowner can terminate the agreement if the homeowner
doesn’t get a loan from her bank para bayaran yung work, and the loan doesn’t come though, so yung
homeowner could terminate or I void yung kontrata bago pa masimulan yung gawain