RESCISSIBLE CONTRACTS VOIDABLE CONTRACTS UNENFORCEABLE CONTRACTS VOID/INEXISTENT CONTRACTS

DEFINITIONThose validly agreed upon because all essential elements existThose which possess all essential requisites but one of the parties is incapable of giving consentThose that cannot be enforced in court or sued upon by reason of defects provided by lawThose which because certain facts, produce no effect at all

DEFECT/SDamage or injury to one of the parties or to a third personVitiation consent or one of the parties isincapacitatedof Without or in excess of authority, or does not comply with the Statute of Frauds, or both parties are IncapacitatedAbsolute lack either in fact or in law of one, some, or all essential requisites of a contract; prohibited by law; N/V

GROUNDS(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 thingb) Partition of inheritance where an heir suffers lesion of at least of the share to which he is entitled.2. FRAUD OR BAD FAITHa) 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)(Art. 1390)(1390)1. Those where one of the parties is incapable of giving consent2.Those where the consent is vitiated by Mistake, Violence, Intimidation, Undue Influence, FraudArticle 1403(1403[1][2][3])1.Those entered into in the name of another by one without, or acting in excess, of authority2.Those who do not comply with the Statute of Frauds (must appear in writing signed by the party charged)1.Agreement not to be performed 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 GivingArticle 1409Contracts whose cause, object or purpose is contrary to law, etc2.Simulated/Fictitious3.Those w/o cause or object4.Contracts whose object is outside the commerce of men5.Contracts which contemplate an impossible service6.The intention of the parties relative the object cant be ascertained7.Contracts expressly prohibited/declared void by the law

ASSAILABILITY

BY THIRD PERSONSAssailable by party or third personAssailable party onlyby Assailable by party onlyAssailable by party or third person who is directly affected

EFFECTVALID until rescindedVALID until annulledCannot be enforced by court action

Does not produce effects

PRESCRIPTIONWITHIN 4 years (1389) FROM DATE OF CONTRACTWITHIN 4 years (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.No prescriptionNo prescription (1410)

RATIFICATIONCannot be RatifiedMay be RatifiedMay be RatifiedCannot be Ratified

REMEDYRESCISSION

ANNULMENT; RATIFICATIONCONFIRMATIONCURED BY RATIFICATIONDeclaration of Absolute Nullity or Inexistence

HOW REMEDY IS LOSTPRESCRIPTIONPRESCRIPTION

REQUISITES1.Contract is valid2.There is lesion/ pecuniary prejudice3.No other legal remedy4.Object not in legal 1.Knowledge of the reason why contract is voidable2.Injured party mustve 1.Those entered into in the name of another2.Those that dont comply with the Statute of Fraud1.Contracts whose COC, purpose contrary to law2.Simulated/Fictitious3.Contracts w/o COC4.Contracts prohibited by law

REQUISITESpossession of another5.Period to fileexecuted an act which implies his waiver3.Those wherein both parties are incapable of giving