Civil Law Review - March 2, 2021

MIDSAPAK, ANNA MARIA R.
JD-4 CIV REV II- QUIZ

DEAN PAULINO March 2, 2021
I.
The resolution under Article 1191 of the New Civil Code is not predicated
on the injury to economic interest on the part of the party plaintiff but on the
breach of faith by the defendant which is violative of the reciprocity between the
parties, thus only the party to the contract can only demand. Whereas, rescission in
Article 1380 is not principally premised on the breach of trust, but on some
economic damages as a result of inequitable conduct by one party, thus a third
party who is prejudice can demand rescission of the contract.
II.
For example , a contract of sale was entered between A and B. Wherein, A

sold his parcel of land to B and B promised to pay the balance of the purchase
price on or before April 10,2020 but on the said date , B did not pay A. So, the non
– payment of the balance price by B as the buyer, violates the very essence of
reciprocity in the contract of sale, and this will give rise to A’s right to rescind the
contract in accordance with law.
In rescission under Article 1380, where A entered a contract of Sale with B

in order to defraud his creditor, C. Then C, being a third party can demand for
rescission of the contract of sale between A and B.
III.
Unenforceable contracts are those which have all the requisites for
perfection but it may still be unenforceable. Such as; those contracts entered
into in the name of another without authority or acted beyond his authority;
those that do not comply with the statute of fraud, or those where both
parties are incapable of giving consent. These contracts are unenforceable
unless they are ratified.
For example A was authorized by B to lease his land located in Matanao but
B sold the land to C, then the Contract of sale entered between B and C are
unenforceable because B acted beyond his power , which is to lease his land
only and not to sold it.
Another example of unenforceable contract is when, A has a loan contract

with B , which is due and demandable on or before March 12, 2021 and C, a
third party , made an oral promised to B , that in case of non-payment of A ,
she will answer the obligation. The promised made by C to B must be in
writing to be enforceable.
Also, in a contract whereby A , a minor entered into a contract with B, a

deaf- mute who cannot read and write .
IV
The action for annulment of contracts entered into by a person with a penalty of
civil interdiction must made within four years from the time the incapacity of the
said person ceases.
V.
Ratification is the act of curing the defect which made the contract annullable. It
may be expressly or tacitly given and it extinguishes the action to annul avoidable
contract.
An example of express ratification is when, A and B entered into a lease contract,

but A was coerced by B to lease his property. And after the reason of coercion
ceased, A writes B a letter that he will continue the defective lease contract. While
an example of tacit ratification is when A instead of writing B a letter, A willingly
and continuously pays the rentals for the subject leased premises to continue live
therein.
VI.
A is a minor and B is suffering from mental illness. They entered into a

contract of sale during the state of minority ( of A) and during the state of insanity
of ( B).
If after reaching the age of majority, A ratified the contract, can B file an
action for annulment of contract? Explain fully. ( 10 pts.)
No. B cannot file an annulment of contract.
A voidable contracts are those one of the parties is incapable of giving

consent to the contact and those where consent is vitiated by mistake, violence,
fraud or undue influence and the remedy of this is the annulment of the contract.
In the present case, there exist an unenforceable contract since, both A & B
are incapable of giving consent, thus annulment is not applicable . Therefore, B
cannot file an annulment of contract.
VII.
No. Void contracts cannot be cured by prescription.
As enunciated in Article 1410 of the New Civil Code, the action or defense for the
declaration of the inexistence of a contract does not prescribe. Thus, it cannot be
cured or validated either by time or ratification.
VIII.
FALSE. Mutual Restitution is not applicable in all cases of restitution.
The law states that when the defect of the contract consists in the incapacity of one
the parties , the incapacitated person is not obliged to make any restitution except
insofar as he has been benefited by the thing or price received by him.
IX.
An agreement for leasing a property for a longer period that on year is outside of
the coverage of the Statute of frauds when the lessee is already in possession of the
property or when the lessor already received payment of rentals. Clearly the Statute
of Frauds only applies to executory contracts and not to contracts which have been
partially performed or consummated.
X.
No.
It is an established Doctrine that partial performance takes an oral contract

out of the scope of the Statute of Fraud by reason of estoppel. Conversely, Statute
of Fraud applies only to executory contracts or contracts which are yet to be
performed.
In this case, there was already a partial execution of the contract as

evidenced by the partial payments made. Therefore, it is not barred by the Statute
of Frauds.

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MIDSAPAK, ANNA MARIA R.

JD-4 CIV REV II- QUIZ

For example , a contract of sale was entered between A and B. Wherein, A

In rescission under Article 1380, where A entered a contract of Sale with B

Another example of unenforceable contract is when, A has a loan contract

Also, in a contract whereby A , a minor entered into a contract with B, a

An example of express ratification is when, A and B entered into a lease contract,

A is a minor and B is suffering from mental illness. They entered into a

No. B cannot file an annulment of contract.

A voidable contracts are those one of the parties is incapable of giving

No. Void contracts cannot be cured by prescription.

FALSE. Mutual Restitution is not applicable in all cases of restitution.

It is an established Doctrine that partial performance takes an oral contract

In this case, there was already a partial execution of the contract as

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