Who may avail When to avail

CONTRACT Definition Nature of Defect Remedy Effect

remedy remedy

Those which have Creates the obligation

economic damage
caused a particular to return the things
either to one of the 1.The party suffering
economic damage which were the object
parties or to a third lesion or the creditor
either to one of the When the party of the contract, together
person and which may who is defrauded
Rescissible parties or to a third
person and which may
be set aside even if valid
Rescission/Resolution
2.their representatives
suffering damage has
no other legal means to
with their fruits, and the
price with its interest
Contract be set aside even if valid.
1.Entered into by
persons exercising
3.their heirs
4.their creditors by
obtain reparation for Except: object of the
It may be set aside in the same (Art. 1383) contract are legally in
fiduciary capacity virtue of subrogatory
whole or in part, to the the possession of third
2.Payments made in action
extent of the damage persons who did not act
state of insolvency
caused. (Art. 1381) in bad faith

1.Entered into without

or in excess of authority
Ratification
(unauthorized
1.by the failure to object
Those which cannot be contract) 1.owner of the property
Unenforceable enforced by a proper 2.Does not comply with
to the presentation of
oral evidence to prove
2.by party against whom
When a party asks the
court to enforce the
Contract deemed valid
and enforced when
Contract action in court unless
ratified (Art. 1403)
the statute of frauds
3.Both of the
the same
the contract is being
enforced
contract ratified
2.by the acceptance of
contracting parties do
the benefits under them
not possess the required
legal capacity
 Annulment
Contract not yet
consummated – parties
shall be released from
Action for annulment
the obligations arising
may be instituted by all
1. within four years in therefrom
1.Entered into without who are thereby obliged
Those in which all of cases of intimidation, Contract consummated
or in excess of authority principally or
the essential elements violence or undue – restore to each other
(unauthorized subsidiarily.
for validity are present, influence, from the the things which have
contract) Requisites:
although the elements of time the defect of the been the subject matter
1.Plaintiff must have
Voidable consent is vitiated either
by lack of legal capacity
2.Does not comply with Annulment or interest in the contract
consent ceases.
2.within four years
of the contract, with
their interest, except in
Contract of one of the parties or
the statute of frauds Ratification 2.The victim and not the
party responsible for the
from the discovery of cases provided by law
by mistake, violence, the fraud or mistake Ratification
3.Both of the vice or defect
intimidation, undue 3. from the time the Extinguishes the action
contracting parties do
influence, or fraud (Art. guardianship ceases for annulment of a
not possess the required
1390) (minors or incapacitated voidable contract
legal capacity Ratification
persons) It cleanses the contract
1.Express
from all its defects from
2.Tacit – Art.1393
the moment it was
constituted

In pari delicto
Neither may recover
what he has given by
virtue of the contract,
or demand the
performance of the
other’s undertaking
(Art. 1411)
One which lacks 1.Those lacking in Declaration of nullity or The action or defense
Only one guilty
Void or Inexistent absolutely either in fact
or in law one or some of
essential elements
2.Contracts prohibited
Declaration of Nullity
inexistence can be
invoked by a person
for the declaration of
the inexistence of a
Recovery of the guilty
Contract the elements which are by law
or Inexistence
whose interest is directly contract does not
of what has already
been given is barred
essential for its validity affected prescribe (Art. 1410)
The other who is not at
fault may demand the
return of what he has
given without any
obligation to comply
with his promise (Art.
1412)