DEFECTIVE CONTRACTS

RESCISSIBLE CASES 1. entered by guardians whenever the wards whom they represent suffer lesion by more than of the value of the thing. 2. afreed upon in representation of absentees who suffer lesion by more than of the value of the thing. 3. undertaken in fraud of creditors when the latter cannot in any other manner collect the claim due them. 4. refer to things under litigation if they have entered into by the defendant without the knowledge and approval of the litigant or the court. VOIDABLE 1. where one of the parties is incapable of giving consent to a contract. 2. where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud. UNENFORCEABLE 1. entered into in the name of another person by one who has no authority or who has acted beyond his powers. 2. do not comply with the Statute of Frauds, the following cases that were not in writing: a) agreement that by its terms is not to be performed within a year from the making thereof; b) a special promise to answer for the debt, default or miscarriage of another; c) an agreement made in consideration of marriage other than a mutual promise to marry; d) agreement for the sale or goods for not less than P500.00; e) agreement for leasing for a longer period than one year; f) sale of real property or an interest therein; and g) representation as to the credit of a third person. 3. where both parties are incapable of giving consent to a contract - excess or without authority - not in writing - lack of capacity of both of the contracting parties - cannot be enforced - ratification - waiver - contracting party VOID 1. whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy 2. absolutely simulated or fictitious 3. whose cause or object did not exist at the time of the transaction 4. whose object is outside the commerce of men 5. contemplate an impossible service 6. where the intention of the parties relative to the principal object of the contract cannot be ascertained 7. expressly prohibited or declared void by law.

CAUSE

- injury or damage to the contracting party or 3rd person - valid and effective until rescinded - prescription - w/in 4 years - contracting party - 3rd person injured

- vitiated consent - lack of capacity of one of the contracting parties - valid until annulled - prescription - ratification - w/in 4 years - innocent contracting party

- lack of one or some of the elements of a contract - cause or object are contrary to law - no effect - cannot be validated - imprescriptible - contracting party - 3rd person injured

EFFECT VALIDATION WHEN ATTACKED WHO ATTACKS