DEFECTIVE

CONTRACTS
 Nature of Effect How Assailed Proper When to Susceptibility Who can
defect Party Assail to ratify
R ratification
E
Economic Valid Direct action(but Injured 4 yrs. –from Yes Injured
S prejudice
until subsidiary only) party/ regaining party/ward
C rescin Note: cannot be creditor capacity; /absentee
I ded availed if the defraude knowledge /creditor/p
S party cannot d of arty litigant
return or the domicile;
S object is with a discovery
I 3rd person in GF; of fraud
B also if the
contract
L approved by the
E court
 Nature of Effect How Proper When to Susceptibility Who can
defect Assaile Party Assail to ratification ratify
d

V Incapacity Valid Direct By the 4 yrs – from Yes By

O /vitiation until action incapacitat gaining incapacitated
of consent annulled ed or party capacity; or party whose
I whose cessation of consent
D consent force vitiated
vitiated intimidation or
A undue
B influence;
discovery of
L fraud or
mistake
E
 Nature of Effect How Proper Party When to Susceptibility Who can
U defect Assailed Assail to ratification ratify
N
E
N Both Cannot By way of By owner At the Yes By party
incapabl be defense in who did not time the against
F an action
e; statute enforced authorize other whom
O for specific
of frauds; by court the other; party contract
R performanc
entered action by the seeks to is being
e or
E by one objection party enforce enforced
C w/o to parol the /by
E authority evidence contract parents or
guardians
A
of both
B
L
E
 Nature of Effect How Proper When to Susceptibility Who
defect Assailed Party Assail to ratification can
ratify

Contrary to Does Direct By parties Imprescriptible No None

law, etc./ not action or whose
V one or some create collateral interests
requisites rights/n by way of are directly
O absent/ o defense affected
absolutely obligati
I simulated/ on
D created
KIND RESCISSIBLE VOIDABLE UNENFORECEABLE VOID
Nature of Economic prejudice Incapacity/vitiation of Both incapable; statute of frauds; Contrary to law, etc./
consent entered by one w/o authority one or some requisites
defect absent/ absolutely
simulated/

Effect Valid until rescinded Valid until annulled Cannot be enforced by court action Does not create
rights/no obligation
created

How Assailed Direct action(but subsidiary only) Note: Direct action By way of defense in an action for Direct action or
cannot be availed if the party cannot specific performance or objection to collateral by way of
return or the object is with a 3rd person parol evidence defense
in GF; also if the contract approved by
the court

Proper Party Injured party/creditor defrauded By the incapacitated or party By owner who did not authorize the By parties whose
whose consent vitiated other; by the party interests are directly
affected

When to Assail 4 yrs. –from regaining capacity;
knowledge of domicile; discovery of
fraud
4 yrs – from gaining capacity; At the time the other party seeks to Imprescriptible
cessation of force enforce the contract
intimidation or undue
influence; discovery of fraud
or mistake

Susceptibility Yes yes Yes no

to ratification
Who can ratify Injured By incapacitated or party By party against whom contract is being none
party/ward/absentee/creditor/party whose consent vitiated enforced/by parents or guardians of
litigant both