Comparisons of Defective Contracts

1.) As to defect

Void contracts: caused by lack of essential elements or illegality

Voidable contracts: defect is caused by vices of consent

Rescissible contracts: caused by injury/damage either to one of the parties or a 3rd person

Unenforceable contracts: caused by lack of form, authority or capacity of both parties not cured by presciption

2.) As to effect

Void contracts: no legal effect, as a general rule

Voidable contracts: valid and enforceable until they're annulled by a competent court

Rescissible contracts: valid and enforceable until rescinded by a competent court

Unenforceable contracts: can't be enforced by a proper action in court

3.) As to prescription to declare nullity

Void contracts: no prescription for a declaration of nullity, inexistence or defense of nullity

Voidable contracts: action for annulment or defense of annulability can prescribe

Rescissible contracts: action for prescription can prescribe

Unenforceable contracts: corresponding action for recovery if there was total or partial performance of the unenforceable contract under no. 1 or 3 Art. 1403 of the Civil Code may prescribe

4.) As to curative effect of prescription

Void contracts: can't cured by prescription

Voidable contracts: can be cured by prescription

Rescissible contracts: can be cured by prescription

Unenforceable contracts: can't be cured by prescription

5.) As to ratification

Void contracts: can't be ratified

Voidable contracts: can be ratified

Rescissible contracts: don't need to be ratified

Unenforceable contracts: can be ratified

6.) As to who can assail/question/attack

Void contracts: not just the contracting parties, but also a 3rd person whose interest is directly affected

Voidable contracts: only a contracting party

Rescissible contracts: not just the contracting parties, but also a 3rd person who is prejudiced or damaged by the contract

Unenforceable contracts: only a contracting party

7.) As to direct or collateral attack

Void contracts: can be attacked both directly and collaterally

Voidable contracts: can be attacked both directly and collaterally

Rescissible contracts: direct attack only

Unenforceable contracts: can be attacked both directly and collaterally