 Agreement for sale of goods, etc.

at a price
not less than P500
 S and B mutually promised to sell and buy a
piano at a price of P 12,000.00. This contract
must be in writing to be enforceable against
either party unless there is delivery or partial
or full payment, in which case it is taken out
of the operation of the Statute of Frauds and
the contract may be enforced even it if was
made orally.
 Agreement for leasing a longer period than
one year –
 R agreed to lease his house to E for two year.
Again this agreement must appear in writing
to be enforceable unless it is partially
executed.
 Agreement for the sale of real property or an
interest therein –
 S orally sold his land or his right or usufruct in
said land to B. The agreement is also
unenforceable unless it has been partially
executed.
 Representation as to the credit of a third person
–
D seeking a loan from C. T represents to C that D is
solvent and has good credit reputation. Relying
upon this representation, C extends a loan to D
who, actually, is insolvent.
The representation of T, which was made to induce
the extension of credit to D, must be in writing
to be enforceable. Here, there is no promise by T
to answer for the debt of D. Note that there is
not agreement involved.
 Article 1409. The following contracts are inexistent and void from
the beginning:
 (1) Those whose cause, object or purpose is contrary to law,
morals, good customs, public order or public policy;
 (2) Those which are absolutely simulated or fictitious;
 (3) Those whose cause or object did not exist at the time of the
transaction;
 (4) Those whose object is outside the commerce of men;
 (5) Those which contemplate an impossible service;
 (6) Those where the intention of the parties relative to the
principal object of the contract cannot be ascertained;
 (7) Those expressly prohibited or declared void by law.
 These contracts cannot be ratified. Neither can the right to set up
the defense of illegality be waived.
 Article 1410. The action or defense for the declaration of the
inexistence of a contract does not prescribe.
 Article 1410. The action or defense for the
declaration of the inexistence of a contract
does not prescribe.
 Article 1411. When the nullity proceeds from
the illegality of the cause or object of the
contract, and the act constitutes a criminal
offense, both parties being in pari delicto,
they shall have no action against each other,
and both shall be prosecuted. Moreover, the
provisions of the Penal Code relative to the
disposal of effects or instruments of a crime
shall be applicable to the things or the price
of the contract.
 S sold B contraband articles for P10,000.00. b
paid only P1,000.00 and S did not deliver all
the articles agreed upon.

 In this case, neither party has the right of

action against each other. Both shall be
prosecuted and the price and the articles shall
be confiscated.