Grounds for Rescissible and Voidable Contracts PDF

Grounds for Rescissible Contract (1) Those where one of the parties is incapable of giving consent to a Art. 1380. Contracts validly agreed contract; upon may be rescinded in the cases (2) Those where the consent is established by law. (...

Grounds for Rescissible Contract (1) Those where one of the parties is incapable of giving consent to a Art. 1380. Contracts validly agreed contract; upon may be rescinded in the cases (2) Those where the consent is established by law. (1290) vitiated by mistake, violence, intimidation, undue influence, or Art. 1381. The following contracts are fraud. rescissible: These contracts are binding, unless (1) Those which are entered into by they are annulled by a proper action in guardians whenever the wards whom court. They are susceptible of they represent suffer lesion by more ratification. (n) than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in Grounds for Void Contract representation of absentees, if the latter suffer the lesion stated in the Art. 1409. The following contracts are preceding number; inexistent and void from the beginning: (3) Those undertaken in fraud of creditors when the latter cannot in any (1) Those whose cause, object, or other manner collect the claims due purpose is contrary to law, morals, them; good customs, public order, or public policy; (4) Those which refer to things under litigation if they have been entered (2) Those which are absolutely into by the defendant without the simulated or fictitious; knowledge and approval of the litigants or of competent judicial (3) Those whose cause or object did authority; not exist at the time of the transaction; (5) All other contracts specially declared by law to be subject to (4) Those whose object is outside the rescission. (1291a) commerce of men; (5) Those which contemplate an impossible service; Grounds for Voidable Contract (6) Those where the intention of the Art. 1390. The following contracts are parties relative to the principal object voidable or annullable, even though of the contract cannot be ascertained; there may have been no damage to the contracting parties: (7) Those expressly prohibited or declared void by law. These contracts cannot be ratified. 2. Rescissible Contracts – a Neither can the right to set up the valid contract but can be defense of illegality be waived. rescinded. 3. Voidable – valid until annulled. However can not Prescripted period for Voidable be annulled if already Contract ratified. Art. 1391. The action for annulment shall be brought within four years. What is a Contract? This period shall begin: Art. 1305. A contract is a meeting of In cases of intimidation, violence or minds between two persons whereby undue influence, from the time the one binds himself, with respect to the defect of the consent ceases. other, to give something or to render In case of mistake or fraud, from the some service. (1254a) time of the discovery of the same. Essential Elements of a And when the action refers to Contract contracts entered into by minors or other incapacitated persons, from the Art. 1318. There is no contract unless time the guardianship ceases. (1301a) the following requisites concur: (1) Consent of the contracting parties; Effect of Unenforceable (2) Object certain which is the subject matter of the contract; Contract, Rescissible Contract, and Voidable Contract (3) Cause of the obligation which is established. (1261) 1. Unenforceable – contract can not be enforced, unless ratified. It may also be called Stages of Contract, negotiation, validable or meaning, it has Perfection and Consummation no effect now but may be effective upon ratification. Negotiation Compared to voidable contract, which has effect This is when the parties interested in the contract express their interest and now but it may be invalidated agree on the terms. (not obliged to or valid until annulled. perform) Perfection Contract Names This is when the parties agree on the Art. 1307. Innominate contracts shall essential elements of the contract, be regulated by the stipulations of the such as the price, object, and consent. parties, by the provisions of Titles I (concurrence or performing) and II of this Book, by the rules governing the most analogous Consummation nominate contracts, and by the This is when the parties fulfill the customs of the place. (n) terms of the contract, which Nominate contract. A contract that completes the contract. is specifically regulated by law, such (ma-extinguished) as a lease, sale, or agency contract. A nominate contract is an agreement between two or more parties that Consensual, Formal, and Real creates obligations that can be legally Contracts enforced. Consensual Contracts - perfected by Nominate contract. They have a mere CONSENT. specific name and designation in the law (contract of sale, contract of - a contract that is perfected by partnership, contract of pledge, mere consent or by the mere contract of shuttle mortgage, contract meeting of the minds between of commodatum, contract of mutuum the contracting parties and etc. Real Contracts - require DELIVERY to Innominate contract. A contract be valid as a real contract even as that does not have a specific name between the parties, in addition to under the law, but can still be valid if consent, subject matter, and cause. it meets the essential requirements of a contract. An example of an - it is perfected from the moment innominate contract is purchasing a that there is a delivery of the piece of land from a seller. The subject matter. It is not obligations created by the contract are necessary that there is only a determined by the nature of the land meeting of the mind, in a real being transferred. contract, there must be the delivery of the intended subject 4 KINDS OF INNOMINATE matter in order to have a CONTRACTS perfected real contract. 1. do ut des - I give that you may give Formal Contracts - perfected by conformity to essential FORMALITIES. 2. do ut facias - I give that you may do 3. facto ut des - I do that you may who has entered into a contract give without the consent of the parent or guardian, after the annulment of the 4. facto ut facias - I do that you may contract voluntarily returns the whole do thing or price received, notwithstanding the fact the he has not been benefited thereby, there is Civil Obligations and Natural no right to demand the thing or price Obligations thus returned. Art. 1423. Obligations are civil or Art. 1427. When a minor between natural. Civil obligations give a right of eighteen and twenty-one years of age, action to compel their performance. who has entered into a contract Natural obligations, not being based on without the consent of the parent or positive law but on equity and natural guardian, voluntarily pays a sum of law, do not grant a right of action to money or delivers a fungible thing in enforce their performance, but after fulfillment of the obligation, there shall voluntary fulfillment by the obligor, they be no right to recover the same from authorize the retention of what has the obligee who has spent or been delivered or rendered by reason consumed it in good faith. (1160A) thereof. Some natural obligations are set forth in the following articles. Art. 1428. When, after an action to enforce a civil obligation has failed the Art. 1424. When a right to sue upon defendant voluntarily performs the a civil obligation has lapsed by obligation, he cannot demand the extinctive prescription, the obligor return of what he has delivered or the who voluntarily performs the contract payment of the value of the service he cannot recover what he has delivered has rendered. or the value of the service he has rendered. Art. 1429. When a testate or intestate heir voluntarily pays a debt Art. 1425. When without the of the decedent exceeding the value of knowledge or against the will of the the property which he received by will debtor, a third person pays a debt or by the law of intestacy from the which the obligor is not legally bound estate of the deceased, the payment to pay because the action thereon has is valid and cannot be rescinded by prescribed, but the debtor later the payer. voluntarily reimburses the third person, the obligor cannot recover Art. 1430. When a will is declared what he has paid. void because it has not been executed in accordance with the formalities Art. 1426. When a minor between required by law, but one of the eighteen and twenty-one years of age intestate heirs, after the settlement of the debts of the deceased, pays a legacy in compliance with a clause in the defective will, the payment is effective and irrevocable. Sources of Obligation Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a)