RESCISSIBLE VOIDABLE UNENFORCEABLE VOID/INEXISTENT

DEFECT Injury or damage either to Vitiation of consent or 1. Entered into in excess Void – all requisites for
one of the parties or to a legal incapacity of one of or without any contracts are present, but
third person the contracting parties authority the cause, object, or
2. Does not comply with purpose is contrary to
No damage or prejudice Statute of Frauds law, morals, customs,
needed 3. Both contracting public order or public
parties legally policy; or the contract is
incapacitated prohibited or declared by
law to be void

Inexistent - lack one or

some elements of a valid
contract
KINDS 1. Those entered into by 1. Those where one of Statute of frauds 1. Those whose cause,
guardians whenever the parties is (evidence of agreement object or purpose is
their wards suffer incapable of giving cannot be received contrary to law,
lesion by more than ¼ consent without the writing of its morals, good
of the things which 2. Those where the contents): customs, public order
are object thereof consent is vitiated by 1. An agreement that is or public policy
2. Those agreed upon in mistake, violence, not be performed 2. Those which are
representation of undue influence, or within a year from its absolutely simulated
absentees frau making or fictitious
3. Those entered into in 2. A special promise to 3. Those whose cause or
fraud of creditors answer for the debt, object did not exist at
when the latter default, or the time of the
cannot collect the miscarriage of transaction
claims due them another (surety or 4. Those whose object is
4. Those which refer to guarantor) outside the
things under litigation 3. An agreement made commerce of man
if they have been in consideration of 5. Those which
entered into by the marriage other than a contemplate an
defendant w/o the mutual promise to impossible service
knowledge and marry
 approval of the 4. An agreement for the 6. Those where the
litigants or of sale of goods, intention of the
competent judicial chattels, or things in parties relative to the
authority action, at a price not principal object
5. All others declared by less than 500 pesos cannot be ascertained
law (and buyer does not 7. Those expressly
6. Payments made in a receive part of the prohibited or
state of insolvency for goods and did not pay declared void by law
obligations to whose some part of the 8. In addition:
fulfillment the debtor purchase price) a. Direct result of
could not be 5. Agreement for the previous illegal
compelled at the time leasing for a period contract
they were effected longer than a year, or b. No concurrence
7. Contract of sale for the sale of real between offer and
entered into in property or an acceptance
violation of a right of interest therein c. Do not comply with
first refusal of another 6. A representation as to required form
person the credit of a 3rd when essential for
person validity
VALIDITY & EFFECT Valid and effective (before Binding until annulled by Cannot be enforced by a Produce no legal effect
rescission) court proper action in court
(unless ratified)
Effect of annulment
1. Not yet
consummated:
contracting parties
shall be released from
obligations
2. Consummated: (Arts.
1398-1402) Parties
should be restored to
their original position
with mutual
restitution
CONVALIDATION Prescription only, cannot 1. Prescription Ratification: Cannot be convalidated
be ratified 2. Ratification 1. Failure to object to
3. Loss of the thing presentation of oral
which is the object of evidence
the contract through 2. Acceptance of
the fraud or fault of benefits under them
the person who is
entitled to institute
the action for the
annulment of the
contract
PRESCRIPTION 4 years 4 years N/A Imprescriptible
TYPE OF ATTACK Direct only Cannot renounce right to
setup defense of absolute
nullity or inexistence
WHO CAN ATTACK Injured contracting party Cannot be attacked by 3rd Cannot be attacked by 3rd Contracting party or 3rd
(or their representatives persons persons person whose interest
or heirs and creditors by directly affected
subrogation) or defrauded Plaintiff must have an
third person interest in the contract
(he is obliged thereby) +
must be the victim or
incapacitated party
REMEDY Reparation of damages by
means of restoration of
things to their condition
prior to the celebration of
the contract