Common Distinction of Contracts
OBLIGATIONS & CONTRACT | Academic Year 2012-2013 | | REVIEW MATERIAL | | ATTY. KRISTOPHER A. NAVALES | | |
COMMON DISTINCTIONS | RESCISSIBLE CONTRACTS | VOIDABLE CONTRACTS | UNENFORCEABLE CONTRACTS | VOID OR INEXISTENT CONTRACT | 1. As to Defect | Damage to a party or to third person | Vitiation of Consent | Without or in excess of authority, or does not comply with the Statute of Fraud, or both parties are incapacitated | Absolute or lack of essential requisite in fact or in law | 2.As to effect | Valid until rescinded | Valid until annulled | Cannot be enforced by court action | Does not produce effects | 3.As to nature of remedy | Rescission – a mere remedy | Annulment – not only a remedy but a sanction | Cannot be enforced by court action | Absolute nullity or inexistence – not only a remedy but a sanction | 4. As to basis of remedy | Equity – therefore, public interest predominates | Law – therefore, private interest predominates | xxx | Law – therefore, private interest predominates | 5. As to grounds | Article 1381. The following contracts are rescissible:(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof;(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number;(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them;(4) 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 of competent judicial authority;(5) All other contracts specially declared by law to be subject to rescission. (1291a) | Article 1390. The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties:(1) Those where one of the parties is
COMMON DISTINCTIONS | RESCISSIBLE CONTRACTS | VOIDABLE CONTRACTS | UNENFORCEABLE CONTRACTS | VOID OR INEXISTENT CONTRACT | 1. As to Defect | Damage to a party or to third person | Vitiation of Consent | Without or in excess of authority, or does not comply with the Statute of Fraud, or both parties are incapacitated | Absolute or lack of essential requisite in fact or in law | 2.As to effect | Valid until rescinded | Valid until annulled | Cannot be enforced by court action | Does not produce effects | 3.As to nature of remedy | Rescission – a mere remedy | Annulment – not only a remedy but a sanction | Cannot be enforced by court action | Absolute nullity or inexistence – not only a remedy but a sanction | 4. As to basis of remedy | Equity – therefore, public interest predominates | Law – therefore, private interest predominates | xxx | Law – therefore, private interest predominates | 5. As to grounds | Article 1381. The following contracts are rescissible:(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof;(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number;(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them;(4) 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 of competent judicial authority;(5) All other contracts specially declared by law to be subject to rescission. (1291a) | Article 1390. The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties:(1) Those where one of the parties is