Table of Defective Contracts

Comparative Table of Defective Contracts Defective Contract Status of contract

Remedy

Prescription

Real Party

Grounds

Void Absolutely null and void

Declaration of Absolute Nullity or Inexistence No prescription (1410)

Contracting parties and third person

1. Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy 2. Those which are absolutely simulated or fictitious 3. Those whose cause

Voidable Valid and binding between the parties unless annulled by a proper action in court Annulment; Ratification

4 years : 1. In case of intimidation, violence, or undue influence, from the time intimidation, etc., ceases 2. In case of mistake or fraud, from the time it was discovered 3. In case of contracts entered into by minors or incapacitated persons, from the time guardianship ceases. (1391) Contracting parties

1. Those where one of the parties is incapable of giving consent to a contract. 2. Those where the consent is vitiated by mistake, violence, intimidation, undue influence, or fraud

Unenforceabl e Valid but unenforceable in court unless they are cured or ratified

Rescissible Valid and enforceable unless rescinded

Ratification

Rescission

No prescription

Gen. rule: 4 years Exceptions: 1. For persons under guardianship: period shall begin from the termination of incapacity 2. For absentees, from the time the domicile is known (1389)

The contracting parties and the aggrieved party 1. Caused by lack of form, authority, or capacity of both parties not cured by prescription 2. agreement not intended to confer legal rights and obligations

One of the parties or a third person

(Art. 1381) 1. Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than ¼ of the value of the things which are the object thereof; 2. Those

or object did not exist at the time of the transaction 4. Those whose object is outside the commerce of men 5. Those which contemplate an impossible service 6. Those where the intention of the parties relative to the principal object if the contract cannot be ascertained 7. Those expressly prohibited or declared void by law (Art. 1409)

(Art. 1390)

agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; 3. Those undertaken in fraud of creditor when the latter cannot in any other manner collect claims due them; 4. Those which refer to things under litigation if they have been entered into by the defendant w/o the knowledge and approval of the litigants or of competent judicial authority; 5. All other contracts specially declared by law to be subject to rescission; 6. Payments made in state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected.