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Oblicon - Handout - Void Contracts

This document summarizes different types of void or nonexistent contracts under three categories: 1) contracts where consent, object, or cause are contrary to law or nonexistent, 2) contracts that are expressly prohibited or declared void by law, and 3) the effects of illegality in contracts where the act is criminal, not criminal, merely prohibited, or divisible. Key points include that void contracts cannot be ratified or waived and are imprescriptible, the rules on recovery depend on whether the parties are at fault or innocent, and illegal terms may still be enforced if the contract is divisible.

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Rhett Emmanuel C. Serfino
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79 views1 page

Oblicon - Handout - Void Contracts

This document summarizes different types of void or nonexistent contracts under three categories: 1) contracts where consent, object, or cause are contrary to law or nonexistent, 2) contracts that are expressly prohibited or declared void by law, and 3) the effects of illegality in contracts where the act is criminal, not criminal, merely prohibited, or divisible. Key points include that void contracts cannot be ratified or waived and are imprescriptible, the rules on recovery depend on whether the parties are at fault or innocent, and illegal terms may still be enforced if the contract is divisible.

Uploaded by

Rhett Emmanuel C. Serfino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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VOID/INEXISTENT CONTRACTS

CONSENT OBJECT CAUSE

simulated/fictitious object contrary to law, etc. cause contrary to law, etc.


intent unascertainable object inexistent cause inexistent
object outside the commerce of man
impossible service

COMMON TO ALL: contracts expressly prohibited or declared void by law

Nature: cannot be ratified/cannot be waived/imprescriptible

Effects of Illegality: If act is criminal

Pari delicto : both prosecuted


One party innocent - can reclaim what is given
Repudiation allowed before purpose accomplished/3rd person
damaged (if public interest subserved)

If act is not criminal

Both party at fault - neither may recover


One party at fault - he cannot recover what he has given
- party not at fault may demand return of what he
has given
One party incapacitated - court may allow recovery of money or
property delivered (interest of justice)

If act is merely prohibited (not illegal per se )

• Plaintiff may recover what he has given (if public policy is enhanced)
• Recovery also allowed for price ceilings/overtime/minimum wage

If illegal but divisible

• Legal terms may be enforced


• Illegality of contract not available as defense to 3rd persons whose
interests are not directly affected
• Contract which is a direct result of a previous illegal contract also void

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