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    Chapter 7 - Voidable Contracts

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    Koala Lyan

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    Chapter 7 - Voidable Contracts

    Uploaded by

    Koala Lyan
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    Original Title

    CHAPTER 7 - VOIDABLE CONTRACTS

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    7 views4 pages

    Chapter 7 - Voidable Contracts

    Uploaded by

    Koala Lyan

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    CHAPTER 7 - VOIDABLE CONTRACTS

    VOIDABLE CONTRACTS IN GENERAL.-


    Voidable contract may be defined as those in which all of the essential elements
    for validity are present, although the element of consent is vitiated either by lack
    of legal capacity of one of the contracting parties or by mistake, violence,
    intimidation, undue influence, or fraud.
    The most essential feature of a voidable contract is that it is binding until it is
    annulled by a competent court.

    CHARACTERISTICS.-
    Voidable contracts possess the following characteristics:
    1. Their defect consists in the vitiation of consent of one of the contracting
    parties.
    2. They are binding until they are annulled by a competent court.
    3. They are susceptible of convalidation by ratification or by prescription.
    4. Their defect or voidable character cannot be invoked by third persons.

    ART. 1390.
    The following contracts are voidable or annullable, even though there may have
    been no damage to the contracting parties:
    1. Those where one of the parties is incapable if giving consent to a contract;
    2. Those where the consent is vitiated by mistake, violence, intimidation,
    undue influence or fraud.
    These contracts are binding, unless they are annulled by a proper action in court.
    They are susceptible of ratification.

    CONTRACTS WHICH IS VOIDABLE.-


    It must be observed that in a voidable contract all of the essential requisites for
    validity are present, although the requisite of consent is defective because one of
    the contracting parties does not possess the necessary legal capacity, or because
    it is vitiated by mistake, violence, intimidation, undue influence or fraud.
    It must also be observed that even though there may have been no damage to
    the contracting parties, the contracts enumerated in ART. 1390 are still
    voidable. Hence, whether a contract which law considers as voidable has
    already been consummated or is merely executory is immaterial; it can always
    be annulled by a proper action in court.

    ART. 1391.
    The action for annulment shall be brought within four
    years. This period shall begin:
    In cases of intimidation, violence or undue influence, from the time the defect of
    the consent ceases.
    In case of mistake or fraud, from the time of the discovery of the same.
    And when the action refers to contracts entered into by minors or other
    incapacitated persons, from the time the guardianship ceases.
    PRESCRIPTIVE PERIOD.-
    According to ART. 1391, the action for annulment must be commenced within a
    period of four years. If the action refers to contracts entered into by
    incapacitated persons, the period shall be counted from the time the
    guardianship ceases; it if refers to those where consent is vitiated by violence,
    intimidation or undue influence ceases or disappears; and if it refers to
    those where consent is vitiated by mistake or fraud, the period
    shall be counted from the time of the discovery of such mistake
    or fraud. If the action is not commenced within such period, the
    right of the party entitled to institute the action shall prescribe.

    ART. 1392.
    Ratification extinguishes the action to annul a voidable contract.

    ART. 1393.
    Ratification may be effected 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.

    ART. 1394.
    Ratification may be effected by the guardian of the incapacitated
    person

    ART. 1395.
    Ratification does not require the conformity of the contracting
    party who has no right to bring the action for annulment.

    ART. 1396.
    Ratification cleanses the contract from all its defects from the
    moment it was constituted

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