DEFINITION

DEFECT/S

GROUNDS

RESCISSIBLE
CONTRACTS
Those validly agreed upon
because
all
essential
elements exist

VOIDABLE
CONTRACTS
Those
which
possess all
essential
requisites but
one of the
parties is
incapable
of
giving consent
Damage or injury to one of Vitiation
of
the parties or to a third
consent or one
person
of the parties is
incapacitated

(Art 1381)
1. LESION OR PREJUDICE
a)
Entered into by
guardians/representatives
whenever
the
wards/absentees
whom
they
represent
suffer
lesion by more than of
the value of the thing
b)
Partition
of
inheritance where an heir
suffers lesion of at least
of the share to which
he is entitled.
2. FRAUD OR BAD FAITH
a)
Those undertaken
in fraud of creditors when
the latter cannot in any
other manner collect the
claims due to them.
b)
Those which refer
to things under litigation
if they have been entered
into by the defendant
without the knowledge
and
approval
of
the
litigants or the competent
court.
3.
SPECIAL
CASES
governed
by
special
provisions (Arts. 1189,
1191, 1526, 1534, 1538,
1542, 1556, 1560, 1567,
and 1659)

UNENFORCEABLE
CONTRACTS
Those that cannot
be enforced in
court
or
sued
upon by reason of
defects provided
by law

VOID/INEXISTENT
CONTRACTS
Those
which
because
certain facts, produce no
effect at all

Without
or
in
excess
of
authority, or does
not comply with
the
Statute
of
Frauds, or both
parties are
Incapacitated

Absolute lack either in

fact or in law of one,
some, or all essential
requisites of a contract;
prohibited by law;
N/V

(Art. 1390)

Article 1403

(1390)
1.
Those
where one of
the parties is
incapable of
giving
consent

(1403[1][2][3])
1.Those
entered
into in the name
of another by
one without, or
acting in excess,
of
authority
2.Those who do
not comply with
the Statute of
Frauds
(must
appear in writing
signed by the
party charged)

2.Those
where
the
consent
is
vitiated by
Mistake,
Violence,
Intimidation,
Undue
Influence,
Fraud

Article 1409

Contracts whose cause,

object or purpose is
contrary to law, etc
2.Simulated/Fictitious
3.Those w/o cause or
object
4.Contracts whose object
is
outside
the
commerce of men
5.Contracts
which contemplate
an impossible service
6.The intention of the
parties
relative
the
object
cant
be
1.
ascertained
7.Contracts
Agreement not
expressly
to
be prohibited/declared void by
performed
the law

within one year

from
the
making thereof.
2.
Promise to
answer for the
debt, default or
miscarriage of
another.
3.
Agreement
in
consideration
of
marriage
other than a
mutual promise
to marry.
4.

Agreement for
sale of goods,
chattels
or
things
in
action, at a
price not less
than
five
hundred pesos
5.

Agreement for
leasing for a
longer
period
than one year.
6.
Agreement for
the sale of real
property or of
an
interest
therein
7.
Representation
as to the credit
of
a
third
person.
3.Those
where
both
parties
are
incapable
of
Giving

ASSAILABILITY Assailable by party or third Assailable

by
BY
THIRD person
party
only
PERSONS
EFFECT
VALID until rescinded
VALID
until
annulled

Assailable by party Assailable by party or

only
third
person
who
is
directly affected
Cannot be enforced Does not produce effects
by court action

PRESCRIPTION WITHIN 4 years (1389)

WITHIN 4 years No prescription
FROM DATE OF CONTRACT (1391)
from date of
capacity
4 years from the
date force,
intimidation or
undue influence
ceases &
4 years from the
date error or
fraud was
discovered.
RATIFICATION Cannot be Ratified
May be Ratified
May be Ratified

No prescription (1410)

REMEDY

RESCISSION

Declaration of Absolute
Nullity or Inexistence

HOW REMEDY
IS LOST

PRESCRIPTION

ANNULMENT;
RATIFICATION
CONFIRMATION
PRESCRIPTION

CURED BY
RATIFICATION

Cannot be Ratified

REQUISITES

REQUISITES

1.Contract is valid
1.Knowledge of
the
reason
2.There
is
lesion/
why contract
pecuniary prejudice
is
3. No other legal
voidable
remedy
2.Injured party
4.Object not in legal
mustve

possession of another
5.Period to file

executed
an
act
which
implies
his
waiver

1.Those entered
into
in
the
name
of
another
2.Those
that
dont
comply
with
the
Statute
of
Fraud

3.Those wherein
both
parties
are
incapable
of
giving

1.Contracts whose COC,

purpose contrary to law
2.Simulated/Fictitious
3.Contracts w/o COC
4.Contracts prohibited by
law