Concepcion, Denise G.

1G
Obligations and Contracts
Comparison of the Different Kinds of Defective Contracts

COMPARISON VOID VOIDABLE RESCISSIBLE UNENFORCEABLE

Legal Status Does not exist and Valid, binding and Valid, binding and Valid but cannot be
cannot produce legal produce legal effects produce legal effects sued in court.
effects. unless annulled. unless rescinded,
Nature of Defect Generally, the defect The defect has The defect has The defect has
has something to do something to do with something to do with something to do with
with the cause or consent. economic damage or the capacity of both
object. Consent is either not lesion. parties, lack of
The object is illegal, intelligently given or authority of the party
immoral, beyond the not voluntarily or entering into the
commerce of man, freely given or not contract or with the
inexistent, etc. consciously or form of the contract.
spontaneously given.
Can it be ratified? Cannot be ratified Can be ratified. Cannot be ratified. Can be ratified.
because it does not Ratification cleanses Rescission can no Ratification may
exist and hence, the contract from all longer be a remedy happen by failure to
there is nothing to of its defects. in cases: object to
ratify. It may be done 1. The party seeking presentation of oral
expressly or tacitly. rescission can no evidence or by
It may be effected by longer return what he acceptance of benefit
the guardian of the received. under such contract
incapacitated person. 2. The object is if it is already
Ratification already in the partially or totally
extinguishes the possession of a third executed such as
action to annul the person. when the price is
contract. 3. Other legal already partly paid or
remedies are when the goods sold
 available. are partially or fully
4. The period to delivered.
rescind had already
prescribed.
Prescriptive period of The legal remedy is The legal remedy is The legal remedy is Inapplicable because
legal remedy to have the contract to annul the contract. to rescind the unenforceable
declared “null and This action to annul contract. contracts cannot be
void”. must be filed in court The action to claim sued upon or
This legal remedy within four years rescission must be enforced in court.
does not prescribe. counting from the filed within four years
It can be filed time: counting from the
anytime in court. 1. Intimidation, time:
violence or undue 1. The incapacity of
influence ceases the minor ceases.
2. The discovery of 2. The domicile of the
the mistake of fraud. absentee is
3. Guardianship discovered.
ceases.
Kinds Article 1409 Article 1390 Article 1381 Article 1403
1. Contracts whose 1. Contracts where 1. Contracts entered 1. Both parties are
cause, object or one of the parties into by guardians incapacitated.
purpose is contrary has no legal capacity. whenever their wards 2. Unauthorized
to laws, morals, good Exception: suffered lesion of contracts entered
customs and public a. in case of sale of more than ¼ of the into in the name f
order or public policy. necessaries and the value of the things another person
2. Contracts which buyer is a minor which are the object. without authority or
are absolutely b. if the 2. Agreed upon in beyond his authority.
simulated or incapacitated person representation of the 3. Not in writing or
fictitious. is partly insane and absentee, if the latter covered by the
3. Contracts the he entered into a suffered lesion of Statutes of Fraud
object or cause which contract during the more than ¼. such as:
do not exist at time time of his lucid 3. Undertaken in a. verbal sale of land
 of the transaction. interval fraud of creditors if b. verbal sale of
Exception: for sale, 2. In case consent is the latter cannot in movable price of
the time of delivery vitiated by violence, any other manner which is not less than
is considered. intimidation, deceit, collect the claims P500.
4. Object is outside error or undue due. c. lease agreement
the commerce of influence. 4. Refer to things for a longer period
man. a. Violence or force under litigation than one year
5. Contemplate an b. Intimidation or entered into by the d. agreement by
impossible service. threat or duress defendant without which its term is not
6. Intention of the c. Deceit or fraud the knowledge of to be performed
parties cannot be d. Error or mistake approval of the within one year
ascertained. e. Undue influence litigants or of the e. a special
7. Expressly Note: if a contract court. agreement to answer
prohibited or was entered into 5. Other contracts for the debt of
declared void by law. reluctantly by a party declared by law as another
against his good rescissible. f. agreement made in
sense and judgment, consideration of
the contract would marriage other than
still be perfectly mutual promise to
valid. marry.
g. representation as
to the credit of
another