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VOID OR INEXISTENT

CONTRACTS
Contracts that are INEXISTENT & 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 man;
(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.
The contracts mentioned cannot be
ratified. Neither can the right to set up
the defense of illegality be waived.
VOID OR INEXISTENT CONTRACTS
VOID CONTRACTS
are those which, because of certain defects, generally produce
no effect at all.
INEXISTENT CONTRACTS
refers to agreements which lack one or some or all of the
elements (i.e., consent, object, and cause) do not comply with
formalities which are essential for the existence of contract.
CHARACTERISTICS OF A VOID OR INEXISTENT
CONTRACTS
(1) Generally, it produces no force and effect whatsoever;
(2) It cannot be ratified (art. 1409, par 2.);
(3) The right to set up the defense of illegality cannot be waived (ibid)
(4) The action or defense for the declaration of its inexistence does not
prescribed (art. 1410);
(5) The defense of illegality is not available to the third party whose
interests are not directly affected (Art. 1421.);
(6) It cannot give rise to a valid contract (Art. 1422.)

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