VOIDABLE CONTRACTS

 one that is defective by reason of the incapacity or

vitiated consent of one to the parties. It is binding
unless annulled by a proper action in court. It is
susceptible of ratification. (Art 1390)
 Are those w/c possess all the essential requisites of
a valid contract but one of the parties is incapable
of giving consent, or consent is vitiated by mistake,
violence, intimidation, undue influence, or fraud.
a. Effective until set aside
b. May be assailed or attacked only in an action for
that purpose
c. Can be confirmed (NOTE: confirmation is the
proper term for curing the defect of a voidable
contract)
d. Can be assailed only by the party whose consent
was defective or his heirs or assigns
a. Minors (below 18)
b. Insane unless acted in lucid interval
c. Deaf-mute who can’t read or write (Art. 1327)
d. In state of drunkenness or hypnotic spell(Art.
1328)
e. Those who were the consent is vitiated by mistake,
violence, intimidation, undue influence or fraud.
(Art. 1390)
Mistake- false belief into something
Violence- serious or irresistible force is employed to wrest consent
Intimidation-one party is compelled by a reasonable and well-grounded
fear of an imminent and grave danger upon person and property of
himself, spouse, ascendants or descendants (moral coercion)
Undue influence- person takes improper advantage of his power over
will of another depriving latter of reasonable freedom of choice
Fraud- thru insidious words or machinations of contracting parties, other
is induced to enter into contract w/o w/c he will not enter (dolo causante)
 is the action to set aside a voidable contract
EFFECTS: Obligations created by annulment
1. In obligation to give- the contracting parties shall restore to each other
except in cases provided by the law, the ff:
a. The things which have been the subject matter of the contract, with their
fruits.
b. The price with its interest. (Art. 1398)
2. In obligation to do- the value thereof shall be the basis of damages. (Art.
1398)
3. Restitution when one of the parties is incapacitated. (Art. 1399)
4. Art.1400 The thing is lost through the fault of the party obliged by the
decree of annulment to return it. (Fruit received, value and interest at the
time of loss)
5. Mutual restitution (Art. 1402)
 The guardian of the incapacitated person during the latter's
incapacity.
 The incapacitated person after he has attained capacity.
 The party whose consent is viitiated by mistake, violence,
intimidation, undue influence, and fraud.

 Thus, persons who employed such vices of consent cannot

base their actions on such flaws o the contract. Based on the
principle, He who comes to court must come with clean
hands. This applies also to capacitated persons who cannot
seek the annulment of the contract on the ground of the
incapacity of the other party.
1)PRESCRIPTION- period to bring an action for
annulment
a. Intimidation, violence, undue influence- 4 yrs. from
the time defect of consent ceases
b. Mistake, fraud – 4 yrs. from time of discovery
c. Incapacity- from time guardianship ceases
2) RATIFICATION- is the adoption or affirmation of a contract
which is defective because of a party’s vitiated consent or
incapacity.
REQUISITES: Art. 1393
a. Knowledge of reason rendering contract voidable
b. Such reason must have ceased, except in case of ratification
effected by the guardian to contracts entered into by an
incapacitated
c. The injured party must have executed an act which expressly
or impliedly conveys an intention to waive his right
a. The guardian (Art. 1394)
b. The incapacitated person after he has attained capacity.
c. The party whose consent is vitiated by mistake, violence,
intimidation, undue influence or fraud.
d. Conformity of guilty party to ratification not required .Art. 1395

a. It extinguishes the action to annul a voidable contract.

(Art. 1392)
b. It cleanses the contract from all its defects from the
moment it was constituted. ART. 1396
3) LOSS OF THE THING -which is the object of the contract
through fraud or fault of the person who is entitled to annul the
contract
EFFECTS:
a. His fault- action to annul extinguished whether such party is
incapacitated or his consent is vitiated.
b. Not his fault- contract can still be annulled, but he will be
obliged to return the value of the thing and its fruits or
interest (Art. 1398) and only up to the extent that he has been
benefited. (Art. 1399)
UNENFORCEABLE CONTRACTS
 One that cannot be enforced unless ratified.
 Valid but cannot compel its execution unless cured
or ratified; Once ratified, contracts may then be
enforceable.
RIGHT TO DEFENSE OF UNENFORCEABILITY
 This right is available only to the contracting
parties. Unenforceable contracts cannot be assailed
by third persons. (Art. 1408)
A. Unauthorized or No sufficient authority – entered into
in the name of another by one without, or acting in
excess of, authority;
B. Where both parties are incapable of giving consent –
2 minor, 2 insane persons or 1 minor and 1 insane
C. Curable by Acknowledgment- failure to comply with
Statute of Frauds (is a statute designed to prevent the
commission of fraud by requiring certain contracts to
be in writing and be subscribed by the party
charged.)
a. When only the parent or guardian of one party
ratifies, the contract is voidable at the instance of
the parent or guardian of the party who did not
ratify the contract.
b. When the parents or guardians of both parties
ratifies, the contract shall be validated from
inception. (Art. 1407)
a. Agreement not to be performed within a year from the
making thereof
b. Special promise to answer for debt, default or miscarriage of
another (Guaranty)
c. Agreement made in consideration of promise to marry
d. Agreement for sale of goods, chattels or things in action at
price not less than 500; exception; auction when recorded
sale in sales book
e. Agreement for lease of property for more than one year and
sale of real property or an interest regardless of price
f. Representation as to credit of a third person
1. Failure of defendant to object in time, to the
presentation of oral evidence in court, the defect
of unenforceability is cured
2. Acceptance of benefits under the contract. If
there is a performance in either part and there is
acceptance of performance, it takes it out of
unenforceable contracts; the defect is waived.