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Comparative Table of Defective Contracts

Defective
Contract
Status of
contract

Remedy

Prescription

Real Party

Grounds

Void
Absolutely null
and void

Declaration of
Absolute
Nullity or
Inexistence
No prescription
(1410)

Contracting
parties and
third person

1. Those
whose cause,
object or
purpose is
contrary to
law, morals,
good customs,
public order or
public policy
2. Those which
are absolutely
simulated or
fictitious
3. Those
whose cause

Voidable
Valid and
binding
between the
parties unless
annulled by a
proper action
in court
Annulment;
Ratification

4 years :
1. In case of
intimidation,
violence, or
undue
influence, from
the time
intimidation,
etc., ceases
2. In case of
mistake or
fraud, from the
time it was
discovered
3. In case of
contracts
entered into by
minors or
incapacitated
persons, from
the time
guardianship
ceases.
(1391)
Contracting
parties

1. Those where
one of the
parties is
incapable of
giving consent
to a contract.
2. Those where
the consent is
vitiated by
mistake,
violence,
intimidation,
undue
influence, or
fraud

Unenforceabl
e
Valid but
unenforceable
in court unless
they are cured
or ratified

Rescissible
Valid and
enforceable
unless
rescinded

Ratification

Rescission

No prescription

Gen. rule: 4
years
Exceptions:
1. For persons
under
guardianship:
period shall
begin from the
termination of
incapacity
2. For
absentees,
from the time
the domicile is
known
(1389)

The
contracting
parties and the
aggrieved
party
1. Caused by
lack of form,
authority, or
capacity of
both parties
not cured by
prescription
2. agreement
not intended
to confer legal
rights and
obligations

One of the
parties or a
third person

(Art. 1381)
1. Those which
are entered
into by
guardians
whenever the
wards whom
they represent
suffer lesion by
more than
of the value of
the things
which are the
object thereof;
2. Those

or object did
not exist at the
time of the
transaction
4. Those
whose object
is outside the
commerce of
men
5. Those which
contemplate
an impossible
service
6. Those where
the intention
of the parties
relative to the
principal
object if the
contract
cannot be
ascertained
7. Those
expressly
prohibited or
declared void
by law
(Art. 1409)

(Art. 1390)

agreed upon in
representation
of absentees, if
the latter
suffer the
lesion stated in
the preceding
number;
3. Those
undertaken in
fraud of
creditor when
the latter
cannot in any
other manner
collect claims
due them;
4. Those which
refer to things
under litigation
if they have
been entered
into by the
defendant w/o
the knowledge
and approval
of the litigants
or of
competent
judicial
authority;
5. All other
contracts
specially
declared by
law to be
subject to
rescission;
6. Payments
made in state
of insolvency
for obligations
to whose
fulfillment the
debtor could
not be
compelled at
the time they
were effected.