VOIDABLE CONTRACTS

PRESENTED BY: LILIAN OPRIASA

SLIDESMANIA
 DABLE CONTRACTS
LILIAN OPRIASA
SLIDESMANIA
 VOIDABLE CONTRACTS
TOPICS
I. WHAT CONTRACTS ARE VOIDABLE

II. INCAPACITY IN VOIDABLE CONTRACTS

III. VICES OF CONSENT

IV. ANNULMENT OF VOIDABLE CONTRACTS

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V. ANNULMENT VS RESCISSION

VI. RATIFICATION OF VIODABLE CONTRACTS

 I.WHAT
CONTRACTS
ARE VOIDABLE?
( ART. 1390 )
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 1. WHEN ONE (1) OF THE PARTIES IS
INCAPABALE OF GIVING CONSENT

2. WHEN ONE (1) OR MORE OF THE VICES

OF CONSENT IS PRESENT

A. VIOLENCE
B. INTIMIDATION
C. MISTAKE
D. FRAUD
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E. UNDUE INFLUENCE
 II.
INCAPACITY
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 1. WHEN ONE (1) OF THE
PARTIES IS INCAPABLE
OF GIVING CONSENT
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 III.
VICES OF
CONSENT
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 2. WHEN ONE (1) OR MORE OF THE
VICES OF CONSENT IS PRESENT

A. VIOLENCE

- WHEN IN ORDER TO WREST

CONSENT, SERIOUS OR IRRESISTIBLE
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FORCE IS EMPLOYED
 EXAMPLE:

ANDREA ASKS NICOLE TO BUY

HIS IPHONE FOR P12,000.
NICOLE REFUSED. ANDREA
THEN PUNCHES NICOLE IN THE
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FACE UNTIL SHE AGREED TO

 WHEN ONE (1) OR MORE OF THE VICES OF
CONSENT
IS PRESENT
B. INTIMIDATION

- WHEN ONE OF THE CONTRACTING PARTIES IS

COMPELLED BY A REASONABLE AND WELL-
GROUNDED FEAR OF AN IMMINENT AND GRAVE
EVIL UPON THE PERSON OR PROPERTY OF HIS
SPOUSE, DESCENDANTS OR ASCENDANTS, TO
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GIVE HIS CONSENT.

 EXAMPLE:

ANDREA ASKS NICOLE TO

LEASE NICOLE’s LAND OR
ELSE SHE WILL SET
NICOLE’s HOUSE IN FIRE
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 EXEMPTION:

A THREAT TO ENFORCE ONE’S

CLAIM THROUGH COMPETENT
AUTHORITY, IF THE CLAIM IS
JUST OR LEGAL, DOES NOT
VITIATE CONSENT
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 EXAMPLE:
ANDREA ASKS NICOLE TO
LEASE NICOLE’s LAND OR ELSE
SHE WILL SUE NICOLE
BECAUSE SHE VIOLATED
ANDREA’s RIGHT OF EASEMENT
REGARDING
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NICOLE’ s PROPERTY
 WHEN ONE (1) OR MORE OF THE VICES OF
CONSENT IS PRESENT

C. MISTAKE

- MISTAKES THAT REFER TO THE

SUBSTANCE OF THE OBJECT,
IDENTITY/QUALIFICATION OF A PERSON,
OR CONDITIONS THAT HAVE PRINCIPALLY
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MOVED ONE OR BOTH PARTIES TO ENTER

 EXAMPLES:

ANDREA BELIEVING THAT

NICOLE IS HER LONG LOST
SISTER, AGREED TO DONATE
HER A HOUSE AND LOT
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 EXAMPLES:

ANDREA SOLD TO
NICOLE A DIAMOND
RING. LATER ON, BOTH
OF THEM FOUND OUT IT
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 EXAMPLES:

IN A PACTO DE RETRO SALE BETWEEN

ANDREA (VENDOR A RETRO) AND NICOLE,
THERE WAS NO REDMPTION PERIOD
STATED. NICOLE WANTS TO ANNUL THE
CONTRACT ON GROUNDS OF MISTAKE
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 ART 3.
– IGNORANCE OF THE
LAW EXCUSES NO ONE
FROM COMPLIANCE
THEREWITH
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 MUTUAL MISTAKE OF LAW

ART. 1334
- MUTUAL ERROR AS TO LEGAL
EFFECT OF AN AGREEMENT WHEN
THE REAL PURPOSE OF THE PARTIES
IS FRUSTRATED, MAY VITIATE
CONSENT.
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 WHEN ONE (1) OR MORE OF THE VICES OF
CONSENT
IS PRESENT

D. FRAUD

- THROUGH INSIDIOUS WORDS OR

MACHINATIONS OF ONE OF THE CONTRACTING
PARTIES, THE OTHER IS INDUCED TO ENTER INTO
A CONTRACT WHICH, WITHOUT THEM, HE
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WOULD NOT HAVE AGREED TO

 WHEN ONE (1) OR MORE OF THE VICES OF
CONSENT IS PRESENT

D. FRAUD

DOLO INCIDENTE
( INCIDENTAL FRAUD )

DOLO CAUSANTE
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( CAUSAL FRAUD )
 EXAMPLE:

ANDREA APPLIES FOR A JOB WITH A

REQUIREMENT OF 3-5 YEARS
EXPERIENCE ON A SPECIFIC JOB.
THOUGH HAVING ONLY 3 YEARS OF
EXPERIENCE, ANDREA MADE IT
APPEAR SHE HAS 5 YEARS.
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 EXAMPLE:

NICOLE SOLD TO ANDREA HER

SPECIFIC CAR. BEFORE SHE
DELIVERS THE CAR TO ANDREA,
SHE CHANGED THE ENGINE
WITHOUT INFORMING ANDREA
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 EXAMPLE:

ANDREA OFFERS TO NICOLE A

ROLEX WATCH. ANDREA MADE
NICOLE BELIEVE IT IS GENUINE
THOUGH SHE KNOW IT IS FAKE
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 WHEN ONE (1) OR MORE OF THE VICES OF
CONSENT
IS PRESENT

E. UNDUE INFLUENCE

- WHEN A PERSON TAKES IMPROPER ADVANTAGE

OF HIS POWER OVER THE WILL OF ANOTHER,
DEPRIVING THE LATTER OF A REASONABLE
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FREEDOM OF CHOICE.
 EXAMPLE:

YOUR PROFESSOR ASKS TO MARRY YOU.

YOU ARE OF AGE BUT THE BIGGEST
FACTOR FOR YOU SAYING YES IS BECAUSE
HE IS YOUR PROFESSOR AND IF YOU SAY
NO, YOU ARE AFRAID HE MIGHT BE
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DISAPPOINTED AND FAIL YOU IN CLASS.

 IV.
ANNULMENT OF
VOIDABLE CONTRACTS

(VOIDABLE CONTRACTS
ARE VALID UNTIL
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ANNULLED)
 WHEN ANNULMENT CANNOT PROCEED

1. WHEN THE OBJECT OF THE CONTRACT IS

LOST THROUGH THE FAULT OF THE
PERSON WHO MAY ANNUL THE
CONTRACT

2. WHEN THE CONTRACT IS RATIFIED

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 WHO CAN ANNUL VOIDABLE CONTRACTS?

1. INCAPACITATED PERSONS (UPON

CEASING OF INCAPACITY)

2. PERSONS WHOSE CONSENT WERE

VITIATED
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 WHEN CAN IT BE ANNULLED?

1. WITHIN FOUR YEARS AFTER GUARDIANSHIP OF

MINORS OR INCAPACITATED PERSONS CEASES

EXAMPLE:

ANDREA SOLD TO NICOLE (17 Y/O) A LAND. UPON

REACHING 18 YEARS OLD, NICOLE CAN AVAIL
ANNULMENT WITHIN 4 YEARS UNTIL HIS LAST DAY
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BEING 22 YEARS
OLD
 WHEN CAN IT BE ANNULLED ?

2. WITHIN FOUR (4) YEARS AFTER

INTIMIDATION, VIOLENCE OR
UNDUE INFLUENCE CEASES
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 WHEN CAN IT BE ANNULLED?

3. WITHIN (4) YEARS FROM

THE TIME OF DISCOVERY OF
MISTAKE OR FRAUD
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 EFFECTS OF ANNULMENT

MUTUAL RESTITUTION:

- THE ANNULMENT OF THE CONTRACT CREATES THE OBLIGATION

OF MUTUAL RESTITUTION , WHERE THE PARTIES HAVE TO
RETURN TO EACH OTHER WHATEVER THEY MAY HAVE
PREVIOUSLY RECEIVED ( FRUITS OR VALUE) BY VIRTUE OF THE
ANNULLED CONTRACT

- SINCE THE DUTY IS MUTUAL OR RECIPROCAL , FAILURE OR

REFUSAL OF ONE PARTY TO RESTORE EXCUSES THE OTHER
FROMCOMPLIANCE WITH HIS OWN OBLIGATION BUT THE
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DECREE OF ANNULMENT REMAINS BINDING AND EFFECTIVE

DESPITE THE FAILURE TO
 Exception: Incapacity

ART. 1399

WHEN THE DEFECT OF THE CONTRACT CONSISTS IN

THE INCAPACITY OF ONE OF THE PARTIES, THE
INCAPACITATED PERSON IS NOT OBLIGED TO MAKE
ANY RESTITUTION EXCEPT INSOFAR AS HE HAS BEEN
BENEFITED BY THE THING OR PRICE RECEIVED BY
HIM
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 EXTENT OF INCAPACITATED PARTY’S OBLIGATION:

IF THE CAUSE OF ANNULMENT IS THE INCAPACITY

OF ONE PARTY (E.G. A MINOR OR AN INSANE PERSON)
HIS DUTY TO RESTORE EXTENDS ONLY TO THE
BENEFIT, IF ANY, THAT HE DERIVED FROM THE
THING RECEIVED BY HIM BY VIRTUE OF THE
CONTRACT
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 Inability to Make Restitution

Art. 1400. Whenever the person obliged by the decree of annulment to return the
thing can not do so because it has been lost through his fault, he shall return the
fruits received and the value of the thing at the time of the loss, with interest from
the same date capacitated party whose consent was not vitiated

Art. 1401. The action for annulment of contracts shall be extinguished when the
thing which is the object thereof is lost through the fraud or fault of the person
who has a right to institute the proceedings.

- These two articles govern cases where the thing to be returned

has been lost through the fault or fraud of the party obliged to
return
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 A. Due to Loss of the Thing by Plaintiff

I. IF THE LOSS OCCURS THROUGH THE PLAINTIFF’S FAULT

- THE RIGHT TO ANNUL IS EXTINGUISHED
NOTE: FAULT OR FRAUD ON THE PART OF THE PLAINTIFF IS
POSSIBLE ONLY IN CASES OF DURESS, FRAUD OR MISTAKE

II. IF THE LOSS OCCURS THROUGH A FORTUITOUS EVENT

- THE PLAINTIFF RETAINS THE RIGHT TO ANNUL AND TO
DEMAND WHAT HE DELIVERED TO THE DEFENDANT, WITHOUT
ANY OBLIGATION TO RETURN THE VALUE OF WHAT HE
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HIMSELF RECEIVED
 B. Due to Loss of the Thing by Defendant:

I. IF THE LOSS OCCURS THROUGH THE

DEFENDANT’S FAULT:

THE DEFENDANT SHALL BE LIABLE FOR:

• THE VALUE OF THE THING

• ITS FRUITS
• INTEREST
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• DAMAGES
 II. IF THE LOSS WAS CAUSED BY A FORTUITOUS EVENT:

A. IF THE DEFENDANT WAS IN BAD FAITH

- HE IS LIABLE TO THE SAME EXTENT AS IF HE WERE AT
FAULT, SINCE HIS BAD FAITH MAKES HIM LIABLE EVEN FOR
FORTUITOUS EVENTS.

B. IF THE DEFENDANT WAS IN GOOD FAITH

- THE DEFENDANT REMAINS LIABLE BUT ONLY FOR THE
PRICE OF THE THING AND ITS FRUITS, HE WILL NOT BE
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LIABLE FOR INTEREST

 V.
RATIFICATION OF
VOIDABLE
CONTRACTS
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 ART 1396

- RATIFICATION CLEANSES THE

CONTRACT FROM ALL ITS DEFECTS
FROM THE MOMENT IT WAS
CONSTITUTED
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 • WHEN A VOIDABLE CONTRACT IS
CONFIRMED, IT IS RAISED TO THE STATUS
OF A VALID CONTRACT

• THE DEFECT IS TAKEN AWAY, BLOTTED

OUT, EXTINGUISHED, AS IF NEVER
EXISTED
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 WHO MAY RATIFY?

THE PARTY WHO CAN

ANNUL VOIDABLE
CONTRACT
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 HOW ?
RATIFICATION CAN BE DONE ORALLY, IN
WRITING, OR MAY BE IMPLIED.

EXAMPLE:
SUPPOSED NICOLE SOLD HER CAR TO
ANDREA (MINOR) IN INSTALLMENT. UPON
REACHING 18 YEARS OLD, ANDREA
CONTINUED TO PAY NICOLE
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 Thank You
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