Particulars 1.

Nature

Rescissible 1. Valid, binding and produces legal effects unless rescinded

Voidable 1. Valid, binding and produces legal effects until annuled

2. Defect

2. Defect has something to do with damage or economic lesion

2. Defect has something to do with consent; capacity of one of the parties 3. Can be ratified 4. Ratification cleanses the contract from all of its defects, which may be done expressly or tacitly. Ratification likewise extinguishes the action to annul the contract The legal remedy is to annul the contract.

3. Ratification

3. Cannot be ratified

4. The legal remedy is to rescind the contract. However, the action for rescission is subsidiary, it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. *Rescission can no longer be the 4. Effect of Ratification/ remedy in the following cases: Legal Remedy - the party seeking rescission can no longer return what he received - the object is legally in possession of 3rd person who did not act in bad faith - other legal remedies are available - the period to rescind has already prescribed 4 years *For persons under guardianship and for the absentee, period will be counted from the time the incapacity of the minor ceases and the domicile of the absentee is discovered. 6.1 Contracts entered into by guardians whenever their wards suffered lesion of more than 1/4 of the value of the thing; 6.2 Agreed upon in representation of the absentee if the latter suffered lesion of more than 1/4; 6.3 Undertaken in fraud of creditors if the latter cannot in any matter collect the claims due;

5. Prescriptive period

Action to annul must be filed within 4 years counting from the time the intimidation, violence, or undue influence ceases; from the time of the discovery of the fraud; guardianship ceases. 6.1 Contract where one of the parties has no legal capacity; 6.2 In case consent is vitiated by mistake, violence, intimidation, undue influence or fraud.

6. Kinds

6. Kinds

6.4 Refer to things under litigation if they have been entered into by the defendant without the knowledge or approval of the litigants or of the court; 6.5 Other contracts declared by law as rescissible.

Void 1. does not exist and cannot produce legal effects

Unenforceable 1. Valid but cannot be sued upon in court

2. Capacity of both parties; lack of 2. Generally, the defect has authority of the party entering into something to do with cause contract; or the form of the contract, or object i.e required in writing but entered into verbally 3. Cannot be ratified 4. The legal remedy is to have the contract null and void. 3. Can be ratified 4. For contracts infringing the Statute of Frauds, ratification may happen by failure to object to presentation of oral evidence to prove the same or by acceptance of benefit under such contract - There is also ratification if the contract is partially or totally executed such as when the price is already paid or when the goods sold are partially or fully delivered - Ratification made by the parents or guardtians of both contracting parties shall validate the contract from inception.

Does not prescribe

Not applicable

6.1 Both parties are incapacitated; 6.1 Contracts whose object 6.2 Unauthorized contracts; or cause are contrary to law, morals, good custom, 6.3 Those that do not comply with public order, public policy; the Statute of Frauds, which require certain contracts to be in writing to 6.2 Contracts which are be enforceable. These contracts are: absolutely simulated or fictitious; a) Agreement not to be performed 6.3 Contracts the object of within a year from the making which did not exist at the thereof; time of transaction;

6.3 Contracts the object of which did not exist at the b) A special promise to answer for a time of transaction; 6.4 Object is outside the debt, default or miscarriage of commerce of man; another; 6.5 Contemplate an c) Agreement made in consideration impossible service of marriage, other than mutual promise to marry; 6.6 Intention of the parties cannot be ascertained; d) An agreement for the sale of 6.7 Expressly prohibited or goods, chattels or things in action, at declared void by law. a price not less than 500 pesos, unless partially or totally executed; e) Contract of lease for a longer period than one year, or of the sale of real property or of an interest therein.