Voidable Contracts (Article 1390-1402)

CHAPTER 7
VOIDABLE CONTRACTS

Art. 1390. The following contracts are voidable or annullable, even though

there may have been no damage to the contracting parties:
(1) Those where one of the parties is incapable of giving consent to a
contract;
(2) Those where the consent is vitiated by mistake, violence,
intimidation, undue influence or fraud. (FIVUM)

These contracts are binding, unless they are annulled by a proper action in

court.

They are susceptible of ratification. (n)

Basic Characteristics
a) Contracts become voidable because of:
i. Incapacity of one of the parties, or
ii. Consent was vitiated
b) Voidable contracts are binding unless they are annulled by a proper
action in court; and
c) Voidable contracts are susceptible of ratification

Incapacity
- Consent is an indispensable element. However, even if there is consent,
there is no effective consent in law without the capacity to given such
consent. Legal consent presupposes capacity.
- The first ground is incapacity of one of the parties to give one’s consent
to the contract. A person may be considered incapacitated because of
1) minority; 2) insanity; 3) imbecility; or 4) state of being deaf mute who
cannot write

Vitiated Consent
- Consent may be vitiated by:
1) Mistake
 2) Violence
3) Intimidation
4) Undue Influence; and
5) Fraud

MISTAKE

Mistake must refer to the substance of the thing that is the object of the
contract, or to those conditions which have principally moved one or both
parties to enter into the contract. The concept of error must include both
ignorance, which is the absence of knowledge with respect to the thing, and
mistake, which is a wrong conception about said thing, or a belief in the
existence of some circumstance, fact or event, which in reality does not exist

FRAUD

The elements of fraud vitiating consent for purposes of annulling a contract

are: 1) It was employed by a contracting party upon the other; 2) It induced
the other party to enter into a contract; 3) It was serious; and 4) It resulted in
damages and injury to the party seeking annulment.

VOIDABLE CONTRACTS � intrinsic defect; valid until annulled; defect is due to vice
of consent or legal incapacity

CHARACTERISTICS:

a. Effective until set aside

b. May be assailed or attacked only in an action for that purpose
c. Can be confirmed ( Note: CONFIRMATION IS THE PROPER TERM FOR CURING
THE DEFECT OF A VOIDABLE CONTRACT)
d. Can be assailed only by the party whose consent was defective or his heirs or
assigns
WHAT CONTRACTS ARE VOIDABLE:

a. THOSE WHERE ONE OF THE PARTIES IS INCAPABLE OF GIVING CONSENT TO A

CONTRACT (legal incapacity)

(1) minors ( below 18 )

(2) insane unless acted in lucid interval

(3) deaf mutes who can’t read or write

(4) persons specially disqualified: civil interdiction

(5) in state of drunkenness

(6) in state of hypnotic spell

b. THOSE WHERE THE CONSENT IS VITIATED BY MISTAKE, VIOLENCE,

INTIMIDATION, UNDUE INFLUENCE OR FRAUD (vice of consent)
(1) Mistake false belief into something

REQUISITES:
1. Refers to the subject of the thing which is the object of the contract
2. Refers to the nature of the contract
3. Refers to the principal conditions in an agreement
4. Error as to person - when it is the principal consideration of the contract
5. Error as to legal effect - when mistake is mutual and frustrates the real purpose
of parties
(2) violence serious or irresistible force is employed to wrest consent

(3) intimidation one party is compelled by a reasonable & well-grounded fear of an

imminent & grave danger upon person & property of himself, spouse, ascendants or
descendants (moral coercion)

(4) undue influence person takes improper advantage of his power over will of
another depriving latter of reasonable freedom of choice

(5) Fraud thru insidious words or machinations of contracting parties, other is

induced to enter into contract w/o w/c he will not enter (dolo causante)
Art. 1390. The following contracts are voidable or annullable, even though
there may have been no damage to the contracting parties:
(1) Those where one of the parties is incapable of giving consent to a
contract;
(2) Those where the consent is vitiated by mistake, violence,
intimidation, undue influence or fraud. (FIVUM)

These contracts are binding, unless they are annulled by a proper action in

court.

They are susceptible of ratification. (n)

Voidable or annullable – those which possess all requisites of a valid contract

but one of the parties is incapable of giving consent, or consent is vitiated by
mistake, violence, intimidation, undue influence or fraud

*valid and binding unless annulled by courts. Once ratified, it is absolutely

valid and cannot be annulled anymore.

Annulment – remedy provided by law for reason of public interest, declaration

of the inefficacy of a contract based on a defect in the consent of one of the
parties