Comparative Table of Defective Contracts

Defective Contract Void Voidable Unenforceable Rescissible

Status of contract Absolutely null Valid and binding Valid but Valid and
and void between the unenforceable in enforceable unless
parties unless court unless they rescinded
annulled by a are cured or
proper action in ratified
court
Remedy Declaration of Annulment; Ratification Rescission
Absolute Nullity or Ratification
Inexistence
Prescription No prescription 4 years : No prescription Gen. rule: 4 years
(1410) 1. In case of Exceptions:
intimidation, 1. For persons
violence, or undue under
influence, from guardianship:
the time period shall begin
intimidation, etc., from the
ceases termination of
2. In case of incapacity
mistake or fraud, 2. For absentees,
from the time it from the time the
was discovered domicile is known
3. In case of (1389)
contracts entered
into by minors or
incapacitated
persons, from the
time guardianship
ceases.
(1391)
Real Party Contracting Contracting The contracting One of the parties
parties and third parties parties and the or a third person
person aggrieved party
Grounds 1. Those whose 1. Those where 1. Caused by lack (Art. 1381)
cause, object or one of the parties of form, authority, 1. Those which are
purpose is is incapable of or capacity of both entered into by
contrary to law, giving consent to a parties not cured guardians
morals, good contract. by prescription whenever the
customs, public 2. Those where 2. agreement not wards whom they
order or public the consent is intended to confer represent suffer
policy vitiated by legal rights and lesion by more
2. Those which are mistake, violence, obligations than ¼ of the
absolutely intimidation, value of the things
simulated or undue influence, which are the
fictitious or fraud object thereof;
3. Those whose (Art. 1390) 2. Those agreed
cause or object did upon in
not exist at the representation of
time of the absentees, if the
transaction latter suffer the
4. Those whose lesion stated in
object is outside the preceding
the commerce of number;
men 3. Those
5. Those which undertaken in
contemplate an fraud of creditor
impossible service when the latter
6. Those where cannot in any
the intention of other manner
the parties relative collect claims due
to the principal them;
object if the 4. Those which
contract cannot be refer to things
ascertained under litigation if
7. Those expressly they have been
prohibited or entered into by
declared void by the defendant w/o
law the knowledge
(Art. 1409) and approval of
the litigants or of
competent judicial
authority;
5. All other
contracts specially
declared by law to
be subject to
rescission;
6. Payments made
in state of
insolvency for
obligations to
whose fulfillment
the debtor could
not be compelled
at the time they
were effected.