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Unenforceable Contract valid, but cannot beenforced unless
ratified according to law. No legal effectunless ratified.
Kinds:
a. Unauthorized or insufficient authority. Thoseentered into the
name of another when:i. No authority grantedii. Excess of the
authority granted
b. Those that do not comply with the Statute ofFrauds. Can be
cured when there isacknowledgement.Scope of Statute of Fraudsi.
Agreement not to be erformed within a
year from making of contractii. !romise to answer for the debt,
default,
or miscarriage of anotheriii. Agreement in consideration of
marriage
other than mutualromise to marry.iv. Agreement for sale of
goods, etc.at
rice not less than "##v. Agreement for leasing for a longer
eriod than one yearvi. Agreement for the sale of real roerty
or of an interest thereinvii. $eresentation as to the credit of
a third
ersonc. Those where both parties are incapable of
giing consent. Can be cured by ratification.
!odes of "atification
a. %ailure to ob&ect the resentation of oralevidence
b. Accetance of benefits under the contract
Can strangers assail the unenforceable contract#
No. 'trangers to a voidable contract cannotbring action to annul
the same contract.
$oid Contract( roduces no effect. This contract
isinexistent.
Characteristics:
a. !roduces no effect at allb. Cannot be ratifiedc. The right to
set u defense of illegality cannot be
waivedd. Action or defense for the declaration of its
inexistence does not rescribee. )efense of illegality is not
available to strangersf. Cannot give rise to a valid contract
Kinds:
a. Contracts lac%ing the essential re&uisites orelementsi.
'rinciple of Freedom is impaired.
*Cause, ob&ect or urose is contrary tolaw etc.+
ii. Those which are absolutely simulatedor fictitious
iii. Those without cause or ob&ectiv. Those whose ob&ect
is outside the
commerce of menv. Those which contemlate an imossible
servicevi. Those where the intention of the arties
cannot b ascertainedb. Contracts e(pressly prohibited by law
"U)*S where contract is +))*,-)
+ST-C*S when one party may as% for "*C/$*"0
1hen actconstitute acriminal offense
1hen act does notconstitute a criminaloffense
otharties arein paridelict
o ore-uallyguilty
a. Theartieshave noactionagainst
eachother
b. oth shallberosecuted
c. Thing orrice willbeconfiscated infavor ofgovernm
ent
a. Neither arty mrecover what wagiven
b. Neither arty mdemand
erformance
nlyonepartyisguilty
$ules above onlyalies to theguilty arty
a. /uilty arty:i. 0oses
what hehas give
ii. Cannotask for tfulfillme
b. 1nnocent artyi. 2ay
demandrecoverof what
was givii. Cannotcomelto com
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a. !ayment of usurious interestb. 3hen money is aid or roerty
delivered for an
illegal urosec. 3hen money is aid or roerty delivered by an
incaacitated ersond. Agreement which is not illegal er se and
the
rohibition is designed for the rotection of thelaintiff
e. !ayment of any amount in excess of themaximum rice allowed by
law for a articularcommodity or article
f. 3hen services is rendered beyond themaximum number of hours
of labor fixed by law.!arty may demand additional comensation
g. 3hen laborer receives less than the minimumwage rate set by
law
Kinds of contract basedon diisibility
*ffect of illegality
)ivisible The whole contract is voidand unenforceable
1ndivisible 1llegal ones can besearated from the legal
ortions
atural /bligations based not on ositive law but one-uity and
natural law. They do not grant such right ofaction to enforce
erformance. 4oluntary erformance isthe essence of this obligation
ertaining to moral duties.
*2-!')*S /F -TU"-) /3)+,-T+/S
a. !erformance after civil obligation has rescribedb.
$eimbursement of a third erson for a debt that
has rescribedc. $estitution by minor after annulment of
contract
d. )elivery by minor of money or fungible thing infulfillment of
obligatione. !erformance after action to enforce civil
obligation has failedf. !ayment by heir of debt exceeding value
of
roerty inheritedg. !ayment of legacy after will has been
declared
void
