TABULAR COMPARISON OF DEFECTIVE CONTRACTS / ATTY.

FILRAY JAVIER

RESCISSIBLE VIODABLE UNENFORCEABLE VOID OR INEXISTENT

Nature of the Validly agreed upon until they Binding unless they are annulled by a Unenforceable by action in court Inexistent and void from the beginning
contract are rescinded proper action in court
Damage to contracting party not necessary
Nature of the - Guardian -> ward suffers - One of the contracting parties is - Unauthorized contracts - Cause, object or purpose is contrary to law,
defect lesion by of the value incapacitated to give consent - Contracts under the Statute of Frauds morals, good customs, public order, public
of the thing - Consent is vitiated by - Both of the contracting parties are policy
- Representative -> o mistake or error incapacitated to give consent - Absolutely simulated/fictitious
absentee suffers lesion o Fraud - Object is outside the commerce of men
by of the value of the o Violence and intimidation Statute of frauds - Contemplate an impossible service
thing o Undue influence - Agreement not to be performed within a - Intention of the parties relative to principal
- Fraud of creditors year from the making object of the contract cannot be ascertained
- Refer to things under - Special promise to answer for the debt, - Expressly prohibited or declared void by law
litigation w/o knowledge miscarriage or default of another - A contract which is the direct result of a
and approval of litigants - Agreement in consideration of marriage previous illegal contract is also void and
or competent authority other than promise to marry inexistent
- Payments made by - Agreement for the sale of
debtor in a state of goods/chattels/things in action
insolvency when debt is - Agreement for the lease for more than 1
not yet due yr, or sale of real property or of an
interest therein
- Representation as to the credit of
another
Primary or Subsidiary; only available Primary Primary Primary
subsidiary? when injured party has no
other legal means to obtain
reparation
Extent Only to the extent necessary Whole contract is annulled Whole contract is unenforceable In case of a divisible contract, if the illegal terms
to cover the damages caused can be separated from the legal ones, the latter
may be enforced
Who may assail - Injured persons, - Principal and subsidiary obligors - Parties to the contract, their heirs and - Contracting parties
- their heirs and - Capable persons cannot allege representatives - Third persons whose interests are directly
representatives, incapacity of the other - Cannot be assailed by third persons affected
- third persons who suffer - Person who caused the vitiation of
lesion consent cannot set up the defense of
vitiation

Effect Creates the obligation to Shall restore to each other: Statute of Frauds must be in writing to be Nullity proceeds from illegality of the cause/object:
return: - Things which have been the subject enforceable or received as evidence of - If both parties in pari delicto
- Things which are the matter of the contract contract in court o No action against each other
object of the contract - Fruits o Both will be prosecuted
- Their fruits - Price with interest Sufficient note/memorandum o RPC on disposal of effects or
- Price with interest - (Ex: provided by law) - Names instruments of crime shall be
- Terms and conditions of agreement applicable (confiscated by
Only when he who demands When defect is the incapacity --> - Description of subject matter sufficient for government)
rescission can return incapacitated person is not obliged to make its identification - Only one guilty party
whatever he may be obligated restitution, except insofar as he was - Date and place of agreement o Innocent one may claim what he
to restore benefited - Signature of party assuming the has given
Loss of the thing does not bar the action obligation o Innocent not bound to comply with
(defendant still required to make restitution) - No necessary form, may be done in his promise
- EX: loss was due to incapacitated several documents
persons fault/fraud Nullity does not constitute a criminal offense
EX: Sale of goods/chattels/things in action - If both parties in pari delicto
Effect of loss: o Neither may recover what he has
1. Fault and fraud given
 TABULAR COMPARISON OF DEFECTIVE CONTRACTS / ATTY. FILRAY JAVIER

By plaintiff -> action is extinguished - Buyer receives part of goods/chattels or o Neither may demand the
By defendant -> he shall return fruits, value evidence, or some of things in action performance of the others
of the thing at the time of the loss, with - Buyer at the time of the sale undertaking
interest - Sale by action -> auctioneer enters in his - Only one guilty party
sales book (sufficient memorandum) o Guilty cannot recover what he has
2. Fortuitous event o Amount and kind given
By plaintiff -> defendant cannot be o Terms of sale o Guilty cannot ask for the fulfillment
compelled to comply with what is o Price of what he has been promised
incumbent upon him (Tolentino) o Names of parties o Innocent can demand the return of
By defendant -> defendant cannot be what he has given
compelled to comply with what is Ratification (it becomes enforceable) o Innocent not obliged to comply
incumbent upon him (Tolentino) Statute of Frauds with his promise
- 1) failure to object to the presentation of GR: Parties in pari delicto cannot recover
oral evidence to prove the same EX:
- 2) acceptance of benefits under them 1. Interest paid in excess of interest
allowed -> debtor may recover excess
Both parties are incapable of giving consent interest
- Express/implied ratification by parent or 2. Illegal purpose -> party repudiating the
guardian: contract may recover
- Of only one -> voidable 3. Illegal contract + one party is
- Of both -> validated from its inception incapacitated -> incapacitated may
recover
4. Not illegal per se but prohibited ->
plaintiff who is protected by the
prohibition may recover
5. Statute/law determines price of
article/commodity -> payor may claim
payment in excess of the maximum
6. Law fixes/authorizes fixing of max
hours of labor -> laborer may demand
addl compensation for service beyond
limit
7. Law sets/authorizes setting of min
wage -> laborer entitled to claim
deficiency if he enters into a contract w/
a lower wage
Prescription, Prescription only 4 years Prescription 4 years - Cannot be ratified
ratification, - Persons under - Intimidation/violence/undue influence - The right to set up the defense of illegality
extinguishment guardianship from the time the defect of consent cannot be waived
of action termination of incapacity ceases - Action or defense does not prescrible
- Absentees domicile is - Mistake/fraud discovery
known - Minors/incapacitated time the
guardianship ceases

Ratification
- Express
- Tacit

Loss by the plaintiff (injured party) through

his own fault/fraud --> extinguishes action
(no more right to annul the contract)