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Defective Contracts

The document outlines the classifications of defective contracts: rescissible, voidable, unenforceable, and void, detailing their defects, status, remedies, purposes, grounds, and prescription periods. Each type has specific conditions under which it is considered valid or invalid, and the remedies available for each classification. Additionally, it notes the importance of mutual restitution and the requirements for public instruments.

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Mc Jade Javier
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37 views1 page

Defective Contracts

The document outlines the classifications of defective contracts: rescissible, voidable, unenforceable, and void, detailing their defects, status, remedies, purposes, grounds, and prescription periods. Each type has specific conditions under which it is considered valid or invalid, and the remedies available for each classification. Additionally, it notes the importance of mutual restitution and the requirements for public instruments.

Uploaded by

Mc Jade Javier
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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DEFECTIVE CONTRACTS

RESCISSIBLE VOIDABLE UNENFORCEABLE VOID

DEFECT: damage or injury to one of the parties 1)​ vitiated consent 1)​ no authority/acted beyond his 1)​ contrary to 1306 - law, morals, good
or to a third party 2)​ one of the parties is incapacitated power customs, policy, public order
2)​ both parties are incapacitated 2)​ prohibited by law
3)​ Violation of Statute of Frauds 3)​ declared by law to be void

STATUS: valid but rescissible valid until annulled valid but unenforceable no effect

REMEDY: Rescission Annulment NONE Declaration of Absolute Nullity

PURPOSE: repair damages 1)​ cleanses the contract


2)​ extinguishes the action to annul

GROUNDS: GACLOS (6) (2) (7) (7)


1.​ Guardian sells the property of 1.​ vitiated consent - mistake, 1.​ Agreement not to be performed 1.​ Contrary to 1306;
the ward and suffers lesion by intimidation, violence, undue within 1 year; 2.​ Absolutely simulated or fictitious
more than ¼ of its value; influence, fraud; 2.​ Lease for more than 1 year; contracts;
2.​ Representation of absentee and 2.​ one party is incapacitated 3.​ Sale of real property regardless of 3.​ Lacks one, some or all essential
the latter suffers lesion by more value; elements - consent, object, cause;
than ¼ of its value; 4.​ Sale of personal property with 4.​ Outside the commerce of man;
3.​ Fraud of creditors; value of 500 or more; 5.​ Impossible service;
4.​ Things under litigation; 5.​ Promise to answer for debt - 6.​ International of the parties cannot
5.​ Other instances: default or miscarriage on the part be ascertained; and
a.​ Partition (less than ¼); of the guarantor; 7.​ Prohibited or declared by law to be
b.​ Sale per unit; and 6.​ Representation as to credit of void.
6.​ Payment made under state of another person; and
insolvency. 7.​ Agreement in consideration of
marriage.

PERIOD/ General Rule: 4 years General Rule: 4 years NONE does not prescribe
PRESCRIPTION: Exception: Exception:
1.​ Guardianship - termination of 1.​ Intimidation, violence, undue
incapacity; influence - the defect of consent
2.​ Absentee - time the domicile is ceases;
known. 2.​ Mistake, fraud - upon discovery;
3.​ Incapacity - time it ceases

OTHER NOTES: ●​ Mutual restitution ●​ Mutual restitution ●​ requisites to compel public ●​ In Pari Delicto - equally at fault
instrument:
1.​ valid contract;
2.​ not against the Statute of
Frauds

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