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Kinds of Contracts

The document discusses three types of contracts: 1) Rescissible contracts - Contracts that can be rescinded or canceled in specific cases outlined by law, such as contracts where one party suffered significant financial damages. 2) Voidable contracts - Contracts that can be declared invalid, such as those where consent was obtained through mistake, violence, or fraud. These contracts are valid unless annulled by a court. 3) Unenforceable contracts - Contracts that are not legally binding unless ratified, including those made without proper authority or those that don't comply with Statute of Frauds requirements for documentation of certain types of agreements.

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Ralph Veloso
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273 views3 pages

Kinds of Contracts

The document discusses three types of contracts: 1) Rescissible contracts - Contracts that can be rescinded or canceled in specific cases outlined by law, such as contracts where one party suffered significant financial damages. 2) Voidable contracts - Contracts that can be declared invalid, such as those where consent was obtained through mistake, violence, or fraud. These contracts are valid unless annulled by a court. 3) Unenforceable contracts - Contracts that are not legally binding unless ratified, including those made without proper authority or those that don't comply with Statute of Frauds requirements for documentation of certain types of agreements.

Uploaded by

Ralph Veloso
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 DOCX, PDF, TXT or read online on Scribd
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RESCISSIBLE CONTRACTS

Article 1380. Contracts validly agreed upon may be rescinded in the


cases established by law. 

Article 1381. The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards
whom they represent suffer lesion by more than one fourth of the
value of the things which are the object thereof;

(2) Those agreed upon in representation of absentees, if the latter


suffer the lesion stated in the preceding number;

(3) Those undertaken in fraud of creditors when the latter cannot in


any other manner collect the claims due them;

(4) 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 of competent judicial authority;

(5) All other contracts specially declared by law to be subject to


rescission.

VOIDABLE CONTRACTS:

Article 1390

The following contracts are voidable or annullable, even though there


may have been no damage to the 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.

These contracts are binding, unless they are annulled by a proper


authority action in court. They are susceptible of ratification.

UNENFORCEABLE CONTRACTS:
The following contracts are unenforceable, unless they are ratified:

 Those entered into in the name of another person by one who


has been given no authority or legal representation, or who has
acted beyond his powers;

 These that do not comply with the Statute of Frauds as set forth
in this number. In the following cases, an agreement hereafter
made shall be unenforceable by action, unless the same, or
some note or memorandum thereof, be in writing, and
subscribed by the party charged, or by his agent; evidence,
therefore, of the agreement cannot be received without the
writing, or a secondary evidence of its contents.

1. An agreement that by its terms is not to be performed within a


year from the making thereof;
2. A special promise to answer for the debt, default, or miscarriage
of another;
3. An agreement made in consideration of marriage, other than
mutual promise to marry;
4. An agreement for the sale of goods, chattels or things in action,
at a price not less than five hundred pesos, unless the buyer
accept and receive part of such goods and chattels, or the
evidence, or some of them of such things in action, or pay at the
time some part of the purchase money; but when the sale is
made by auction and entry is made by the auctioneer in his
sales book, at the time of the sale, of the amount and kind of
property sold, terms of sale, price, names of the purchasers and
person on whose account the sale is made, it is a sufficient
memorandum;
5. An agreement for the leasing for a longer period than one year,
or for the sale of real property or of an interest therein;
6. A presentation as to the credit of a third person.
7. Those where both parties are incapable of giving consent to a
contract.

VOID OR INEXISTENT CONTRACTS:

Article 1409. The following contracts are inexistent and void from the
beginning:

(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 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 of the contract cannot be ascertained;

(7) Those expressly prohibited or declared void by law.

These contracts cannot be ratified. Neither can the right to set up the
defense of illegality be waived.

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