OBLIGATIONS AND CONTRACTS 4TH EXAM

DEFECTIVE CONTRACTS REVIEWER

Emille Dane S. Viola
RESCISSIBLE
(1381)
(1) Those which are entered into by guardians
whenever the wards whom they represent suffer
lesion by more than one-fourth of the value of
the things which are the object thereof;
(2) Those agreed upon in representation of
absentees, if the latter suffer the lesion stated
in the preceding number;
(3) Those undertaken in fraud of creditors when
the latter cannot in any other manner collect
the claims due them;
(4) Those which refer to things under litigation if
they have been entered into by the defendant
without the knowledge and approval of the
litigants or of competent judicial authority;
(5) All other contracts specially declared by law
to be subject to rescission.

VOIDABLE
(1390)
(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. These contracts are binding, unless
they are annulled by a proper action in court.
They are susceptible of ratification.

UNENFORCEABLE
(1403)
(1) Those entered into in the name of another
person by one who has been given no authority or
legal representation, or who has acted beyond his
powers;
(2) Those that do not comply with the Statute of
Frauds as set forth in this number. In the following
cases an agreement hereafter made shall be
unenforceable by action, unless the same, or some
note or memorandum, thereof, be in writing, and
subscribed by the party charged, or by his agent;
evidence, therefore, of the agreement cannot be
received without the writing, or a secondary
evidence of its contents:
(a) An agreement that by its terms is not to be
performed within a year from the making thereof;
(b) A special promise to answer for the debt,
default, or miscarriage of another;
(c) An agreement made in consideration of
marriage, other than a mutual promise to marry;
(d) An agreement for the sale of goods, chattels or
things in action, at a price not less than five
hundred pesos, unless the buyer accept and
receive part of such goods and chattels, or the
evidences, or some of them, of such things in
action or pay at the time some part of the purchase
money;
but when a sale is made by auction and entry is
made by the auctioneer in his sales book, at the
time of the sale, of the amount and kind of
property sold, terms of sale, price, names of the
purchasers and person on whose account the sale
is made, it is a sufficient memorandum;
(e) An agreement of the leasing for a longer period
than one year, or for the sale of real property or of
an interest therein;
(f) A representation as to the credit of a third
person.
(3) Those where both parties are incapable of
giving consent to a contract.

VOID
(1409)
(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 men;
(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.
These contracts cannot be ratified. Neither
can the right to set up the defense of
illegality be waived.