1. What contracts are voidable or annullable?

Those where one of the parties is incapable of giving consent to a

contract;
Those where the consent is vitiated by mistake, violence,
intimidation, undue influence or fraud
2. Is damage to the contracting parties required before a contract is deemed
voidable or annullable

3. What is the status of a voidable contract before it is annulled by a competent

court?
It is valid.
4. May a voidable contract be attacked directly or collaterally?
Directly
5. May a voidable contract be ratified or confirmed?
Be ratified
6. What is the prescriptive period for filing an action for annulment of a voidable
contract?
Four years
7. When should the computation of the prescriptive period begin for actions
arising from vitiation of consent due to intimidation, or violence or undue
influence?
From the time the defect of the consent ceases.
8. When should the computation of prescriptive period begin for an action
arising from vitiation of consent due to mistake or fraud?
From the discovery of the same.
9. How is the start of the computation of the prescriptive period different from
the rule provided in fraudulent conveyances of land registered with the
Registry of Deeds? (see Balbin v. Medalla, 108 SCRA 666)
On the latter, discovery of fraud must be reckoned to have taken
place from the time the document was registered in the office of
the register of deeds.
10. When should the computation of prescriptive period begin for an action
arising from vitiation of consent due to minority or other forms of incapacity?
From the time the guardianship ceases.
11.What are the legal consequences for failure to pursue the action within the
period prescribed by law?
The nullity of the contract can no longer set up as a defense to an
action to enforce the same.
12.What is ratification and confirmation? Differentiate.

 Ratification- is applicable to unenforceable contracts, or contracts

where consent is totally absent.
The person who ratifies
approves an act executed by another.
Confirmation- applicable only to annullable contracts. The person
who confirms has participated in the act which is the object of the
action for annulment.
13.What are the requisites of ratification to be deemed effective?
That the contract is a voidable or annullable contract
That the ratification is made with knowledge of the cause for
nullity
That at the time the ratification is made, the cause of nullity has
already ceased to exist.
14.How may ratification be effected?
Expressly or tacitly
15.When does tacit ratification take place?
see sample SC cases cited in pp. 552-553, Pineda, Obligations and
Contracts
May be implied from the conduct or acts of the party entitled to
ask for annulment. Any act evincing an intent to abide the
contract is evidence of the affirmance of the affirmance of the
contract.
16.Can contracts entered into by incapacitated persons be ratified by their
guardians?
YES
17.Does ratification require the conformity of the contracting party who has no
right to bring the action for annulment?
NO
18.What is the legal effect of ratification or confirmation of a voidable contract?
No action to annul the same can be maintained based upon
defects relating to its original validity.
19.When does the cleansing of the defect of a ratified voidable contract take
effect?
After a contract has been validly ratified.
20.Will the retroactive effect of ratification in curing the defect of a voidable
contract, prejudice the rights of innocent third persons?
NO.
21.Is the right to ratify a voidable contract a transmissible right?
YES. It is transmitted to heirs of the party entitled to such right.
22.What is the status of a voidable contract that is not ratified?
They are effective and valid.

23.Who has the prerogative or the right to file an action for annulment of a
voidable contract? (see relevant SC cases cited in p. 557- 558, Pineda)
24.What is the exception to the gen. rule that only those principally or
subsidiarily bound by the contract may file an action for annulment?
Persons who are capable cannot allege the incapacity of those
with whom they contracted; nor can those who exerted
intimidation, violence, or undue influence, or employed fraud, or
caused mistake base their action upon these flaws of the
contract.
25.Does the party who caused the vice of consent in the contract, or through a
third person allowed to file annulment of the contract?
YES. Until he is of tender age and wanting in discretion.
26.Can a minor who deliberately misrepresented his age in a contract later
invoke his minority to set aside or annul the contract? (see: Mercado v.
Espiritu, 37 Phil. 215, and compare with Braganza v. De Villa Abrille, 105
Phil. 456)
YES.
27.May a person sui juris annul a contract on the ground of incapacity of the
other party? Why?

28.If a voidable contract has been perfected and its prestations performed by
the parties, but later annulled by the court, what are the duties of the
contracting parties of the annulled contract?
29.What does the duty of mutual restitution consist of? (see Arts. 1398 & 2209)
30.Is the rule of mutual restitution absolute, or does it allow for an exception?
What is the exception, if any?
31.Once a voidable contract is annulled, contracting parties must restore
things received with their fruits and the price with interest, EXCEPT IN
CASES PROVIDED BY LAW.
Please note the discussion of Tolentino on p. 608-609.
Also, note the rules on possession relative to Fruits such as Arts. 544,
549
32.When the defect of the contract is due to the incapacity of one of the
contracting parties, can the latter be obliged to make restitution?
33. Is there an exception to your answer in #32?
34. What is the doctrine of Parens Patriae?
35. If a contract is annulled due to incapacity of one party, is the capacitated
party obliged to return any thing he received from the minor or incapacitated
party? Is there an exception to this?

36. What is the rule if the person who has a right to file an action to annul the
contract (plaintiff) can no longer return the thing object of the contract
because of its loss due to his own fault or fraud? (Tolentino, p. 612)

Will the same rule apply if plaintiff is a minor ?

37. Will the action for annulment still prosper if the object of the contract has
been lost by the plaintiff or the party who has the right to institute the action
but without his fault or due to fortuitous event? (Tolentino, p. 613)

Is the action for annulment by plaintiff now extinguished?

Can plaintiff still compel defendant to make restitution?

If the thing is lost by Plaintiff without his fault but due thru fortuitous
event, and as substitute for the thing lost, he offers to pay its value at
the time of loss. Can he now compel defendant to also make
restitution?

38.

What is the rule if Defendant, the person obliged by the decree of

annulment to return the thing cannot do so because it has been lost through
his fault or fraud? (Tolentino, p. 612)

39.

What about if the loss is due to fortuitous event, without fault by the
contracting party obliged to return the thing (Defendant), will the action for
the annulment of contract by plaintiff still prosper? (Tolentino, pp. 613-614;
read Dumasug v. Modelo, 34 Phil. 252)

Will the Defendant in this case be held liable or not?

40. What are the other causes for extinguishment of the action for annulment of
a voidable contract besides Art. 1401?
41. What is the rule if the party obliged to return the fruits and accessions of the
property object of the contract cannot do so due to his fault or fraud?
42. What are the legal consequences, if after the court ordered the parties to do
mutual restitution, one of them cannot restore what he is bound to return?