Valid Contracts

- Strictly comply with all the legal requirements/elements

- Entered into during a lucid interval
- Relative simulated contracts that do not prejudice a third person AND not intended for purposes
contrary to law, morals, etc.
- Divisible contracts
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Rescissible Contracts

- Valid until rescinded

- Economic/financial injury or damage to contracting party OR 3 rd person
o Lesion by more than ¼ of the value of the object against
 Ward by guardian
 Absentee by representative
o In fraud of creditors
o Entered into by defendant over objects under litigation without knowledge/approval of
litigants/competent judicial authority
o Other contracts declared by law to be subject to such
o Payments made
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Voidable Contracts

- Valid until annulled

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UNENFORCEABLE CONTRACT

- Cannot be enforced by court action, unless ratified

- Statute of Fraud – fully executory contracts; but if fully executed or partly executed, Statute of
Frauds not applicable
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VOID CONTRACTS

- Do not produce any effect

- One or some of the essential reqs are lacking in fact or in law
 o Cause, object, purpose contrary to law, morals, public policy, etc
o Absolutely simulated/fictitious contract
o Cause or object inexistent at the time of the transaction
o Object outside commerce of man
o Contemplate impossible service
o Intention of the parties as to principal cannot be ascertained
o Expressly declared by law as void
- Not susceptible of ratification
- Right of action or defense cannot be waived AND does not prescribe
- May be assailed NOT only by a contracting party but even by a 3 rd party whose interest is
directly affected

In pari delicto (1411)

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