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 (B)</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 (C)</p> Signup and view all the answers

What distinguishes a voidable contract from a rescissible contract?

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

Which situation would result in an unenforceable contract?

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

What is a key characteristic of an unenforceable contract?

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

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

<p>Use of undue influence. (A)</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. (B)</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. (C)</p> Signup and view all the answers

What type of contract is susceptible to ratification?

<p>Rescissible contracts. (C)</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. (B)</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. (C)</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. (A)</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. (D)</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. (C)</p> Signup and view all the answers

Which type of contract is perfected by mere consent?

<p>Consensual contract (D)</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. (B)</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. (B)</p> Signup and view all the answers

What can result in a voidable contract?

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

What do innominate contracts rely on for regulation?

<p>The customs of the place and analogous contracts. (C)</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 (B)</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. (A)</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. (C)</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. (A)</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. (A)</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. (B)</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. (B)</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. (B)</p> Signup and view all the answers

Flashcards

Rescissible Contract

Contracts that may be set aside due to certain factors, such as incapacity, vitiated consent, or harm to a party.

Incapable of giving consent

A party lacks the legal ability to understand the contract's terms and consequences, such as a minor or someone with a mental disability.

Vitiated consent

An agreement where consent is obtained through deceit, pressure, or a lack of proper information.

Void Contract

Legal agreements that are void from the very beginning, meaning they have no legal effect.

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Contract contrary to law, morals, etc.

A contract's purpose or subject matter goes against the law, morality, or public interest.

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Simulated or Fictitious Contract

Contracts where the parties pretend to agree but have no real intention of carrying out the agreement.

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Contract with non-existent cause or object

A contract where the reason for the agreement or the subject matter did not exist when the contract was made.

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Contract with object outside legal scope

Agreements where the subject matter is beyond the legal scope of what can be contracted, such as something illegal or impossible to obtain.

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Real Contract

A contract that is perfected by the delivery of the subject matter. It's not just about agreement, but about the actual transfer of goods or services.

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Innominate Contract

A contract that doesn't have a specific name in law, but still meets the basic requirements for a valid contract. The specific obligations are determined by the nature of the agreement.

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Do ut Des

A contract where one party gives something in exchange for another party giving something else. (I give that you may give).

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Do ut Facias

A contract where one party gives something in exchange for another party doing something. (I give that you may do).

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Facto Ut Des

A contract where one party does something in exchange for another party giving something. (I do that you may give).

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What is a contract?

A meeting of minds between two individuals where one promises to provide goods or services in exchange for something else.

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Voidable Contract

A contract that is legally valid but can be canceled by a court order if one party proves certain circumstances.

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Essential Elements of a Contract

A contract where the terms are clear, the object is defined, and the reason for the agreement is established.

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Unenforceable Contract

A contract that is legally valid, but cannot be enforced by the courts due to a lack of proper form or legal authority.

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Fraud in Contracts

A contract where one party makes a false statement that influences the other party's decision to enter the agreement.

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Intimidation in Contracts

A contract where one party uses force or threats to pressure the other party into agreeing.

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Negotiation Stage

The stage where parties express interest and negotiate the terms of a contract, but are not yet legally obligated to perform.

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Perfection Stage

The stage where parties reach an agreement on the essential elements of a contract, such as price, object, and consent.

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Consummation Stage

The final stage where parties fulfill their obligations under the contract, completing the agreement.

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Consensual Contract

A contract that only requires consent to be valid, like a simple agreement.

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Natural Obligation

A natural obligation, not based on positive law, but on equity and natural law, does not provide a legal right to enforce performance. However, after voluntary fulfillment by the obligor, the obligee may retain what was delivered or rendered.

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Voluntary Performance After Prescription

Even if a right to sue on a civil obligation has expired due to prescription, if the obligor voluntarily performs the obligation, they cannot demand the return of what they delivered or the value of the service rendered.

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Third Party Payment After Prescription

When a third person pays a debt on behalf of the obligor after the right to sue has prescribed, but the obligor later repays the third person, the obligor cannot recover what was paid.

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Minor's Voluntary Payment

If a minor between 18 and 21 years of age, without the consent of a parent or guardian, voluntarily pays a sum of money or delivers a fungible thing in fulfillment of an obligation, they cannot recover it.

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Heir's Voluntary Debt Payment

When a testate or intestate heir voluntarily pays a debt of the deceased exceeding the value of their inheritance, the payment is valid and cannot be rescinded.

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Payment Under a Void Will

If a will is declared void for lacking the required legal formalities, but an intestate heir pays a legacy in compliance with the defective will after settling the deceased's debts, the payment is valid and irrevocable.

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Voluntary Performance After Failed Suit

After an action to enforce a civil obligation fails, if the defendant voluntarily performs the obligation, they cannot demand the return of what they delivered or the payment for the service rendered.

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Payment Under a Void Will (2)

When a will is declared void because it has not been executed in accordance with legal formalities, but an intestate heir, after settling the deceased's debts, pays a legacy in compliance with a clause in the defective will, the payment is effective and irrevocable.

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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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