Professional Documents
Culture Documents
1.
Basis
Origin of the defect
Rescissible Contract
Economic damage or
lesion to one of the
parties or to a third
person: a special
declaration by law that
the contract is subject to
rescission (Art. 1381).
Voidable Contract
Incapacity of one of the
contracting parties to give
consent, or vitiated
consent due to presence
of vices of consent (Art.
1390).
Unenforceable Contract
It was entered into in
behalf of another person
without authority or in
excess thereof;
noncompliance with the
Statute of Frauds;
incapacity of both
contracting parties to give
consent (Art. 1403,
1407).
Damage or prejudice is
not necessary.
Void Contract
Absence of any of the
essential requisites of a
contract (consent, object,
cause) (Art. 1409).
2.
Damage or prejudice
Damage or prejudice to
the other party is not
necessary.
3.
Legal effect
There must be
damage/lesion or
prejudice to one of the
contracting parties or
third person.
They are considered valid
and legally enforceable
until judicially rescinded
(Art. 1380).
Rescission or rescissory
action.
Annulment of contract.
4.
Remedy/ action
5.
Nature of action
6.
7.
Susceptibility of
ratification
8.
Susceptibility of
prescription
Susceptible of
convalidation but not of
ratification proper.
Action for rescission
prescribes after four
years (Art. 1389).
Damage or prejudice is
not necessary.
It may be attacked
directly or indirectly.
Generally must be a
contracting party
principally or subsidiarily
obliged under the
contract (Art. 1397).
Exception: A third person
who is prejudiced.
Susceptible of ratification
(Art. 1392).
He must be a contracting
party. Third persons
cannot assail it (Art.
1438).
Susceptible of ratification
(Art. 1495).
Not susceptible of
ratification (Art. 1409, last
par.).
Action for declaration of
nullity or the putting of the
defense of nullity of the
contract does not
prescribe (Art. 1410).