Evaluate the following statements: Statement A: Contracts intended to defraud creditors can be rescinded under Art. 1191, NCC. Statement B: If the real intention of the parties co... Evaluate the following statements: Statement A: Contracts intended to defraud creditors can be rescinded under Art. 1191, NCC. Statement B: If the real intention of the parties could not be ascertained in a principal contract, the same shall be considered void.
Understand the Problem
The question presents two statements related to contract law under the New Civil Code (NCC) and asks for an evaluation of their correctness. Statement A concerns the rescission of contracts intended to defraud creditors, while Statement B deals with the consequences when the real intention of parties in a principal contract cannot be ascertained.
Answer
Both statements are incorrect. Statement A is about rescission under the wrong article, and Statement B misstates the consequence of unascertainable intentions in a contract.
Statement A is incorrect. Contracts intended to defraud creditors are rescissible under Art. 1381, not Art. 1191 of the Civil Code. Statement B is also incorrect. If the real intention of parties to a principal contract cannot be ascertained, the contract does not become void but should be interpreted by considering the subsequent acts of the parties.
Answer for screen readers
Statement A is incorrect. Contracts intended to defraud creditors are rescissible under Art. 1381, not Art. 1191 of the Civil Code. Statement B is also incorrect. If the real intention of parties to a principal contract cannot be ascertained, the contract does not become void but should be interpreted by considering the subsequent acts of the parties.
More Information
Contracts that defraud creditors fall under rescissible contracts as outlined in the Civil Code.
Tips
It is important to distinguish between the different types of defective contracts (rescissible, voidable, unenforceable, and void) and the specific articles of the Civil Code that apply to each.
Sources
- Solved STATEMENT A: Contracts intended to defraud creditors - chegg.com
- CIVIL CODE OF THE PHILIPPINES : FULL TEXT - Chan Robles - chanrobles.com
- Understanding the Different Types of Defective Contracts - coursesidekick.com
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