Scribd Logo
Upload

Welcome to Scribd!

  • 7K views

    CW3 - 3

    Uploaded by

    Rigel Zabate
    This paper analyzes two cases involving rescissible and voidable contracts under Philippines law. It discusses two problems: 1) whether a creditor C has the right to rescind a sale of a car by the debtor D to a third party X, given D failed to pay a debt and sold the car without C's consent while it was under litigation. 2) Whether a minor S who sold property and later annulled the sale upon reaching majority must return the price, and if the buyer B can refuse ratification and demand restitution. The paper concludes C can rescind the sale as the car was under litigation and D acted fraudulently, and that S's ratification upon majority is valid and binding.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    CW3 - 3

    Uploaded by

    Rigel Zabate
    7K views2 pages
    This paper analyzes two cases involving rescissible and voidable contracts under Philippines law. It discusses two problems: 1) whether a creditor C has the right to rescind a sale of a car by the debtor D to a third party X, given D failed to pay a debt and sold the car without C's consent while it was under litigation. 2) Whether a minor S who sold property and later annulled the sale upon reaching majority must return the price, and if the buyer B can refuse ratification and demand restitution. The paper concludes C can rescind the sale as the car was under litigation and D acted fraudulently, and that S's ratification upon majority is valid and binding.

    Original Title

    CW3 - 3.doc

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This paper analyzes two cases involving rescissible and voidable contracts under Philippines law. It discusses two problems: 1) whether a creditor C has the right to rescind a sale of a car by the debtor D to a third party X, given D failed to pay a debt and sold the car without C's consent while it was under litigation. 2) Whether a minor S who sold property and later annulled the sale upon reaching majority must return the price, and if the buyer B can refuse ratification and demand restitution. The paper concludes C can rescind the sale as the car was under litigation and D acted fraudulently, and that S's ratification upon majority is valid and binding.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    7K views2 pages

    CW3 - 3

    Uploaded by

    Rigel Zabate
    This paper analyzes two cases involving rescissible and voidable contracts under Philippines law. It discusses two problems: 1) whether a creditor C has the right to rescind a sale of a car by the debtor D to a third party X, given D failed to pay a debt and sold the car without C's consent while it was under litigation. 2) Whether a minor S who sold property and later annulled the sale upon reaching majority must return the price, and if the buyer B can refuse ratification and demand restitution. The paper concludes C can rescind the sale as the car was under litigation and D acted fraudulently, and that S's ratification upon majority is valid and binding.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    You are on page 1of 2

    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
    [email protected]

    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.

    You might also like