Rescissible and Voidable Contracts
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Questions and Answers

What is necessary for a contract to be considered a valid real contract?

  • Delivery of the intended subject matter (correct)
  • Written form of the agreement
  • A specific name identifying the contract
  • A meeting of the minds between the parties

    • Which of the following is an example of an innominate contract?

  • A simple loan between friends
  • A rental agreement signed between two parties
  • A verbal promise to exchange services
  • Purchasing a piece of land from a seller (correct)

    • What characterizes civil obligations compared to natural obligations?

  • Natural obligations have a legal enforceability
  • Civil obligations can only be formed through verbal agreements
  • Civil obligations allow for a right of action to compel performance (correct)
  • Natural obligations do not involve any form of compensation

    • In the context of obligations, what does 'do ut des' refer to?

    <p>I give that you may give</p> Signup and view all the answers

    What happens to a contract entered by a minor without parental consent?

    <p>The minor may voluntarily return the benefits received</p> Signup and view all the answers

    What distinguishes a voidable contract from a rescissible contract?

    <p>Voidable contracts remain valid until annulled.</p> Signup and view all the answers

    What is the time frame for bringing an action for annulment in voidable contracts?

    <p>Within four years.</p> Signup and view all the answers

    Which of the following is NOT a ground for a voidable contract?

    <p>The parties wish to void the contract.</p> Signup and view all the answers

    What must exist for a contract to be considered valid?

    <p>No defect in the consent of parties.</p> Signup and view all the answers

    When does the prescriptive period for a voidable contract begin in cases of fraud?

    <p>When the fraud is discovered.</p> Signup and view all the answers

    Which situation would result in an unenforceable contract?

    <p>The contract is missing a clear subject matter.</p> Signup and view all the answers

    In what situation can the right to set up the defense of illegality be waived?

    <p>The right cannot be waived in any situation.</p> Signup and view all the answers

    What is a key characteristic of an unenforceable contract?

    <p>It can be enforced once ratified.</p> Signup and view all the answers

    What is a requirement for a contract to be considered rescissible?

    <p>One party is incapable of giving consent.</p> Signup and view all the answers

    Which of the following factors can vitiate consent in a rescissible contract?

    <p>Use of undue influence.</p> Signup and view all the answers

    Which scenario describes a contract that is void from the beginning?

    <p>The purpose of the contract violates public policy.</p> Signup and view all the answers

    Which of the following is NOT a ground for a rescissible contract?

    <p>Consent is given voluntarily without coercion.</p> Signup and view all the answers

    What type of contract is susceptible to ratification?

    <p>Rescissible contracts.</p> Signup and view all the answers

    In which scenario would a contract be rendered void?

    <p>The object does not exist at the time of transaction.</p> Signup and view all the answers

    What is the significance of perfection in a contract?

    <p>It occurs when the parties agree on essential elements.</p> Signup and view all the answers

    Which of the following statements about fraud in contracts is true?

    <p>Fraud can cause a contract to be rescissible.</p> Signup and view all the answers

    Which of the following situations could render a contract rescissible due to lesion?

    <p>A guardian enters a contract that causes more than one-fourth lesion.</p> Signup and view all the answers

    Which of the following correctly defines consummation of a contract?

    <p>It occurs when parties fulfill the terms of the contract.</p> Signup and view all the answers

    Which type of contract is perfected by mere consent?

    <p>Consensual contract</p> Signup and view all the answers

    What distinguishes a nominee contract from an innominate contract?

    <p>Nominate contracts have a specific regulation by law.</p> Signup and view all the answers

    What stage of a contract does negotiation typically represent?

    <p>It is where parties express interest and agree on terms.</p> Signup and view all the answers

    What can result in a voidable contract?

    <p>Invoking rights to annul the contract.</p> Signup and view all the answers

    Which of the following statements about real contracts is true?

    <p>They require the delivery of an object to be effective.</p> Signup and view all the answers

    What do innominate contracts rely on for regulation?

    <p>The customs of the place and analogous contracts.</p> Signup and view all the answers

    What is the nature of obligations that do not grant a right of action to enforce compliance?

    <p>Natural obligations</p> Signup and view all the answers

    If a third party pays a debt on behalf of a debtor after the right to sue has prescribed, what is the status of the payment?

    <p>It is valid and cannot be rescinded.</p> Signup and view all the answers

    What happens if an obligor voluntarily performs a contract after the right to sue has lapsed?

    <p>They cannot recover what they have delivered.</p> Signup and view all the answers

    What occurs when a minor pays a legacy in compliance with a clause in a defective will?

    <p>The payment is effective and irrevocable.</p> Signup and view all the answers

    Under what circumstance can natural obligations authorize retention of what has been delivered?

    <p>After fulfilling the obligation voluntarily.</p> Signup and view all the answers

    The fee paid by a testate or intestate heir exceeding the value of the property received can be described as:

    <p>Valid and cannot be rescinded.</p> Signup and view all the answers

    What is the consequence if an obligor spends or consumes what was voluntarily delivered?

    <p>They cannot recover what was delivered.</p> Signup and view all the answers

    What legal principle applies when a right to sue has lapsed but the defendant still performs the obligation?

    <p>They cannot recover what they have delivered.</p> Signup and view all the answers

    Study Notes

    Grounds for Rescissible Contracts

    • Contracts can be rescinded in cases specified by law (Art. 1380)
    • Rescissible contracts include those entered into by guardians where the ward suffers a lesion of over one-fourth of the value (Art. 1381(1))
    • Agreements made on behalf of absentees with similar lesion (Art. 1381(2))
    • Contracts made in fraud of creditors, when other avenues for collecting debts are unavailable (Art. 1381(3))
    • Contracts regarding litigated items without the knowledge of litigants or judicial authority (Art. 1381(4))
    • Other contracts declared rescissible by law (Art. 1381(5))

    Grounds for Voidable Contracts

    • Voidable contracts are those that can be annulled, even without damage to parties (Art. 1390)
    • Contracts where one party is incapable of giving consent (Art. 1390(1))
    • Contracts with vitiated consent (mistake, violence, intimidation, undue influence, or fraud) (Art. 1390(2))
    • These contracts are binding unless annulled by court action and can be ratified (Art. 1390)

    Grounds for Void Contracts

    • Void contracts are inherently invalid from the start (Art. 1409)
    • Contracts with unlawful cause, object, or purpose (Art. 1409(1))
    • Absolutely simulated or fictitious contracts (Art. 1409(2))
    • Contracts with a nonexistent cause or object (Art. 1409(3))
    • Contracts whose object is outside the realm of commerce (Art. 1409(4))
    • Contracts involving impossible services (Art. 1409(5))
    • Contracts where intentions of parties regarding the principal object are unclear (Art. 1409(6))
    • Contracts expressly prohibited or declared void by law (Art. 1409(7))

    Prescribed Period for Voidable Contracts

    • Actions to annul a voidable contract must be brought within four years (Art. 1391)
    • In cases of intimidation, violence, undue influence, the period begins when consent defect ceases (Art. 1391)
    • For mistake or fraud, the period begins when the defect is discovered (Art. 1391)
    • Contracts with minors or incapacitated persons begin from the end of guardianship (Art. 1391)

    What is a Contract?

    • A contract is a meeting of minds between two parties to give something or render service (Art. 1305)

    Essential Elements of a Contract

    • Consent of the parties (Art. 1318(1))
    • A defined object (subject matter) (Art. 1318(2))
    • A valid cause for the obligation (Art. 1318(3))

    Stages of Contract

    • Negotiation: parties express interest and agree on terms (not legally binding)
    • Perfection: agreement on essential elements (price, object, consent)
    • Consummation: parties fulfill the terms of the contract (performance)

    Contract Types (Categorizations)

    • Nominate contracts: contracts with specific legal names (e.g., sale, lease, agency)
    • Innominate contracts: contracts without specific legal names; governed by stipulations of parties, related nominate contracts and customs (Art. 1307)

    Real Contracts

    • Perfected by delivery of the subject matter (e.g., deposit, loan)

    Formal Contracts

    • Perfected by following specific formalities (e.g., donation of real property)

    Civil Obligations and Natural Obligations

    • Civil obligations give right of action, while natural obligations do not, but after voluntary fulfillment by the obligor, retention of what has been rendered is allowed
    • A right to sue upon civil obligations can lapse per extinctive prescription (Art. 1424)
    • A party that voluntarily performs an obligation, having failed in a judicial action, cannot recover (Art.1428)

    Sources of Obligation

    • Obligations originate from law, contracts, quasi-contracts, acts/omissions punished by law, and quasi-delicts (Art. 1157)

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    Grounds for Rescissible and Voidable Contracts PDF

    Description

    This quiz explores the grounds for rescissible and voidable contracts as defined by law. Understand the conditions under which contracts may be annulled or rescinded, including the role of guardianship, fraud, and consent issues. Test your knowledge of Articles 1380 to 1390 and the legal principles surrounding contract validity.

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