RESCISSIBLE Valid and enforceable until rescinded; there is a sort of extrinsic defect consisting of economic damage or lesion Causes:

injury or damage to one of the parties or to third persons [Arts. 1381 1382] Cured by prescription Need not be ratified Can be assailed by the injured or damaged party or injured or damaged third person Assailed directly only Outline of provisions: 1380: Nature of rescissible contract 1381-1382: types of rescissible contract 1383: subsidiary character 1384: extent of rescission 1385: mutual restitution; no rescission when the thing is legally possessed by a third person 1386: no rescission in case of 1381 (1) and (2) when the contract is approved by court 1387: preseumption (existence of fraud); alienation by gratuitous title; alienation by onerous title 1388: acquisition in bad faith (of things alienated in fraud of creditors) 1389: prescriptive period

VOIDABLE Valid and enforceable until annulled; The defect is more or less intrinsic Causes: (Art. 1390) - legal incapacity of one party; or - vitiation of consent

UNENFORCEABLE Validable transaction; Cannot be enforce unless ratified

VOID & INEXISTENT Does not and cannot produce legal effect

Causes: (Art. 1403) - contract is entered into in excess or without authority - non-compliance with Stature of Frauds Legal incapacity of both Not cured by prescription Can be ratified Can be assailed by a contracting party (Art. 1408) Assailed directly or collaterally Outline of provisions: 1403: types of unenforceable contracts 1405: ratification of contracts infringing statute of frauds 1407: express or implied ratification by the parent or guardian of one (when both are incapacitated) same effect as if only one is incapacitated; Ratification by parent or guardian of both contract is validated from inception 1408: cannot be assailed by third persons.

Cured by prescription Can be ratified Can be assailed by a contracting party (Art. 1397) Assailed directly or collaterally Outline of provisions: 1390: voidable contracts may be annullable even if there is no damage to parties; types of voidable contracts; binding character unless annulled; susceptibility to ratification 1391: prescriptive period 1392-1397: ratification 1398-1402: Mutual restitution 1398: mutual restitution 1399: exception to mutual restitution defect is the incapacity of one 1400: loss of the thing through fault/fraud of party obliged to return the thing but has no right to institute proceeding, he shall return the fruits and the value of the thing 1401: loss of the thing through fault/fraud of the person who may institute the proceeding (action for annulment is extinguished) 1402: one does not restore the other cannot be compelled to comply

Causes: (void) illicit, prohibited or declared by law as void (inexistent) lacks one or all of the requisites of a contract [Art. 1409] Not cured by prescription Cannot be ratified Can be assailed by a contracting party or a third person whose interest is affected (Art. 1421) Assailed directly or collaterally 1409: types of void or inexistent contracts 1410: imprescriptibility 1411: contracts that are both illegal and criminal both parties have no action against each other and shall be prosecuted 1412: contracts that are illegal but do not constitute criminal offense 1413-1419: exceptions to in pari delicto rule