Obligations and Contracts (2nd Sem)

Essential Requisites Missing

Void Contract

Defective Contracts

1. Rescissive (Ratifiable)
2. Voidable (Ratifiable)
3. Unenforceable (Ratifiable)
4. Void (Non-Ratifiable)

Rescissible

1. Valid in the beginning
2. Something goes wrong along the way
3. It can be validated

Voidable

1. Entered by guardian
2. Interest 1/4 Lesion
3. 4 years to question until age of maturity


Touch all provision (Shotgun)

Absentee

1. Guardian is absent
2. Interest 1/4 Lesion
3. 4 years to question until reappearance

Under Litigation

1. Entered by defendant

1382 (Rescissible)

1. State of Insolvency (Bankrupt)
2. Not obliged to Pay
3. Receiver (Court appointed)

1383 (Rescissible)

1. Exact fulfilment
2. Subsidiary (secondary) remedy

1384 (Rescissible)

1. Damage cover for rescission

1385 (Rescissible)

1. Obligation for mutual restitution
2. Rescission is impossible if:
a. Demander cannot return

1386 Court Approved Contract

Non-Rescissible

1387 (Alienated Creditors / Fraudulent)

1. Debtor cannot pay
2. Transfers title gratuitously (somewhat simulated)

Alienation by onerous title
1. Execute deed without payment


Anything done to defraud creditors

1388 (1387 Accessory)

Case for damages (Bad faith)

1. Cannot be returned = Liable
2. Damages = Liable

Action for rescission claim (4 year prescription)

Voidable Contracts

1. Valid until annulled (proper court)
2. Undue influence, Intimidation, Mistake, Threat, Fraud
3. Ratification susceptible (Express/Implied)
4. Retroactive (As if no contract)
5. Restoration/Mutual Restitution

Requisites
1. Incapable of giving consent
2. 4 year prescription from discovery/ violation cease/ guardianship cease

Extinguishment of Action for Annulment

1. Claimant: Action for annulment
2. Right is lost, Object is lost through fault/fraud
3.

Unenforceable

1. Unenforceable until ratified

1. Entered into another name, acted beyond power
2. Following agreements must be in notarized
a. 1 year non-performance
b. Special promise when default
c. Sale of chattels (500 min.)
d. Long term lease
e. 3rd person credit representation
3. Both parties, no consent

Voidable, one party
Unenforceable, two parties

1405 (Unenforceable)

Estoppel, validation due to non-action and benefit acceptance

1406 (Unenforceable)

1. Deed of sale, not notarized.
2. Compel other party to notarization

1407 (Unenforceable)

1. If one contracting party ratifies through consent, it becomes voidable

1408 (Unenforceable)

3rd parties cannot question contract

Void/Inexistent Contract

1. Non-Ratifiable
2. No right, no obligation
3. Imprescriptible

1. Contrary to L/M/GC/PO/PP
2. Simulated and fictitious
3. No object at contract execution
4. Outside men commerce (donation)
5. Impossible service
6. Unascertainable principal object
7. Expressly prohibited (Defense cannot be taken away)

1411 (Void)

Criminal acts
1. Car napping: Replaceable but the act is illegal
2. Drug deal: Prosecuted according to participation

1412 (Void)

No crime but forbidden

1. No parties can enforce
2. One party is at fault (Innocent can recover)

1413 (Void)

Usury. Charging of excessive interest (Suspended)

1. Return interest (Solutio Indebiti)

1414 (Void)

Change of heart

1. Return transaction money, no purpose accomplishment

1416 (Void)

1. Unlawful agreement but prohibited

1419 (Void)

Follow minimum wage

1. File for underpayment

1420 (Void)

Divisible contract

1. Carry out legal
2. Illegal (Void)

1421 (Void)

3rd party cannot defend illegality

1422 (Void)

Result of previous illegal contract

1. Contract of repurchase is dependent validity of contract