Voidable Contracts in Law

Play an AI-generated podcast conversation about this lesson

What is the effect of ratification on a contract?

It cleanses the contract from all its defects from the moment it was constituted (correct)
It makes the contract voidable
It makes the contract unenforceable
It annuls the contract immediately

What happens if a minor sells a land and then, upon reaching the age of majority, collects the unpaid balance?

The minor waives his right to file an action for annulment (correct)
The minor can still file a case for annulment
The contract becomes void
The contract becomes enforceable

What is an example of an implied ratification?

A minor selling a land and then collecting the unpaid balance (correct)
A person signing a contract with a clear intention to waive his rights
A minor buying a land and then filing a case for annulment
A person acknowledging the contract in writing

What is the difference between express and implied ratification?

Express ratification is manifested in words or writing, while implied ratification is shown through an act (A) Signup and view all the answers

What happens if a person with a right to invoke a voidable contract executes an act that implies an intention to waive his right?

There is a tacit ratification (D) Signup and view all the answers

What is the purpose of ratification in a contract?

To bind oneself with the contract (C) Signup and view all the answers

What is the condition for a person who is not obliged in a contract to exercise an action for nullity?

They must show detriment from the contract (C) Signup and view all the answers

What is the effect of annulment if the contract has not been complied with?

The parties are excused from performing their obligations (D) Signup and view all the answers

What is the basis for damages in cases of restitution for services?

The value of the service (A) Signup and view all the answers

What is the exception to the rule of no restitution by the injured party?

If the injured party has been benefited by the thing or price received (C) Signup and view all the answers

When does Article 1399 apply?

When the defect of the contract is due to the incapacity of one of the parties to consent (A) Signup and view all the answers

What happens if there is compliance with the contract?

There is a recession or mutual restitution (B) Signup and view all the answers

What is the primary basis for rescission of a contract?

Lesion or damage (C) Signup and view all the answers

What is the time period within which an action for annulment must be brought?

Four years (B) Signup and view all the answers

What is required to prevent annulment of a contract?

Ratification (A) Signup and view all the answers

What is the characteristic of a defect in the case of annulment?

Intrinsic (B) Signup and view all the answers

What is the characteristic of the action for annulment?

Principal (A) Signup and view all the answers

What is the status of a voidable contract until it is annulled?

Valid (B) Signup and view all the answers

What is the consequence if one party cannot restore what he is bound to restore in a decree of annulment?

There is no annulment. (C) Signup and view all the answers

What is the purpose of mutual restitution in a decree of annulment?

To restore the parties to their pre-contractual state. (A) Signup and view all the answers

Can Gian be compelled to return Natalie's car if Natalie refuses to return Gian's car?

No, according to Art. 1402. (C) Signup and view all the answers

What is the effect of forcing someone to exchange cars with someone else?

The contract is voidable. (B) Signup and view all the answers

What is the term for a contract that can be declared void by one of the parties?

Voidable contract. (C) Signup and view all the answers

When can a contract entered into by a minor be annulled?

Within 4 years from the time the guardianship ceases (C) Signup and view all the answers

What happens to a voidable contract if the 4-year period to file for annulment passes?

The contract is deemed valid (C) Signup and view all the answers

In the case of Gian, who was intimidated into signing a contract, when does the 4-year period start?

From the date the intimidation ceased (D) Signup and view all the answers

What is the effect of ratification on a voidable contract?

It extinguishes the action to annul the contract (D) Signup and view all the answers

When does Ruzel's 4-year period to file for annulment start in the example?

From the date the fraud was discovered (D) Signup and view all the answers

What is the result if Ruzel fails to file for annulment within the 4-year period?

The contract becomes valid (C) Signup and view all the answers