4 Kinds of Defective Contracts

4 KINDS OF DEFECTIVE CONTRACTS 1. RESCISSIBLE – valid until rescinded; has ALL essential requisites but because of injury/damage to one of the parties, the contract may be rescinded. 2. VOIDABLE – valid until annulled; has ALL essential requisites but because of defect in consent, contract may be annulled. 3. UNENFORCEABLE – cannot be sued/enforced unless ratified; no effect NOW but may take effect upon ratification. 4. VOID – NO effect at all; cannot be ratified/validated.

5 RESCISSIBLE CONTRACTS 1. Those entered by guardians & suffered LESION by more than ¼ of value of the value that is the OBJECT. 2. Those agreed upon in representation of absentees, if the absentees suffered LESION. 3. Those undertaken in FRAUD of creditors when the creditors cannot further claim. 4. If entered into contract w/o knowledge/approval of litigants under litigation. 5. Contracts subjected to rescission declared by law.

3 VOIDABLE CONTRACTS 1. One of the parties INCAPABLE of giving consent to a contract. 2. Those where consent vitiates by vices of consent. (MFVIU) 3. Those agreed in the state of drunkenness/hypnotic spell.

3 UNENFORCEABLE CONTRACTS 1. Those entered in name of other person, or who acted BEYOND his powers. 2. Those who do not comply w/ the Statute of Frauds.

3. Both parties are incapable of giving consent to a contract.

7 VOID/INEXISTENT CONTRACTS 1. Those w/c are ABSOLUTELY simulated/fictitious. 2. Those w/c contemplate an impossible service. 3. Those whose OBJECT is outside the commerce of man. 4. Those whose CAUSE/OBJECT did not exist at time of tran-saction. 5. Those whose CAUSE/OBJECT/PURPOSE is contrary to law, morals, good customs, public order, or public policy. 6. Those where INTENTION of parties to principal object CANNOT be ascertained. 7. Those expressly prohibited/declared VOID by law.