Case Analysis on Chapter 6 & 7

Rescissible Contracts and

Voidable Contracts
Dela Rea, Kimmi F.
Mapua Institute of Technology
School of Electrical, Electronics and Computer Engineering
Muralla St. Intramuros, Manila
kdelarea32@yahoo.com

This paper is a Case Analysis on Chapter 6 Rescissible

Contracts and Chapter 7 Voidable Contracts. The
problems assigned to Group 8 are in the following:
Problem 1
D owes C P100,000. Since D fails to pay, C
expressed its willingness to accept the car of D, with the
same value, more or less, in payment of his debt. D, in bad
faith, sold the car to X. Has C the right to ask for rescission
of the sale?

Problem 2
S, a minor, sold property to B. Later, the sale is
annulled on the ground of the minority of S. Is S bound to
return the price received by him? In the same problem,
suppose S, upon reaching the age of majority, decided to
ratify or respect the contract. Has B the right to refuse the
ratification and demand mutual restitution of the property
and the price?

ARTICLES RELATED ON THE PROBLEMS

Article 1381
The following contracts are rescissible:
(1) Those which are entered into by guardians whenever
the wards whom they represent suffer lesion by more
than one-fourth of the value of the things which are
the object thereof;
(2) Those agreed upon in representation of absentees, if
the latter suffer the lesion stated in the preceding
number;
(3) Those undertaken in fraud of creditors when the latter
cannot in any other manner collect the claims due
them;
(4) Those which refer to things under ligitation if they
have been entered into by the defendant without the
knowledge and approval of the litigants or competent
judicial authority;
(5) All other contracts specially declared by law to be
subject to rescission.
Article 1393
Ratification may be affected expressly or tacitly. It is
understood that there is a tacit ratification if, with knowledge
of the reason which renders the contract voidable and such
reason having ceased, the person who has a right to invoke it
should execute an act which necessarily implies an intention to
waive his right.

PROBLEMS WITH ANSWERS

Problem 1

D owes C P100,000. Since D fails to pay, C

expressed its willingness to accept the car of D, with the
same value, more or less, in payment of his debt. D, in bad
faith, sold the car to X. Has C the right to ask for rescission
of the sale?
-Yes, because the car was under litigation between D
and C. Also, D comes to a fraud because he sell the car to X
without the knowledge of C. Under Article 1381 par. 3 and 4,
those undertaken in fraud of creditors and those things which
is the car under litigation if they have been entered into by the
defendant without the knowledge and approval of litigants.
Contracts undertaken fraud of creditors which is the C may be
valid for rescission.
Problem 2
S, a minor, sold property to B. Later, the sale is
annulled on the ground of the minority of S. Is S bound to
return the price received by him? In the same problem,
suppose S, upon reaching the age of majority, decided to
ratify or respect the contract. Has B the right to refuse the
ratification and demand mutual restitution of the property
and the price?
-No, because the ratifier indicates an intention to be
bound to the provisions of the contract. The ratifier was S. The
ratification was implied because there is a reason which
renders the contract voidable and the minor comes to it age of
majority. It was under Article 1393 that with knowledge of the
reason which renders the contract voidable.