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Comparisons of Defective Contracts

Thursday, January 26, 2012

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Rescissible contracts: valid and enforceable until rescinded by a competent court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

6 comments:

marie said...

I have a query sir. It's about who can assail the validity Is it only the contracting parties can assail in voidable contracts? Or those who are subsidiarily obliged also (e.g. guarantors)?

marie said...

Considering that Article 1397 states that thos who are subsidiarily obliged is also included.

J Labodlay said...

sir..
paano naman po pag binding efficacy ano naman po ang distinction nila?

Unknown said...

Effect yan....

Unknown said...

thank you, it helped me in my assignment.

Unknown said...

Among the four defective contracts, which one is the most defective?

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