Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    Defective Contracts Outline

    Uploaded by

    sbb anbw
    The document discusses two types of defective contracts - rescissible contracts under Articles 1381-1387 which can be rescinded to recover damages when no other legal means of obtaining reparation exists, and voidable contracts under Articles 1390-1396 which are annullable within four years unless ratified either expressly or tacitly. Rescissible contracts include those made under insolvency or those intended to defraud creditors, while voidable contracts lack a specific definition but can be annulled even without damages to the parties.

    Copyright:

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

    Defective Contracts Outline

    Uploaded by

    sbb anbw
    19 views2 pages
    The document discusses two types of defective contracts - rescissible contracts under Articles 1381-1387 which can be rescinded to recover damages when no other legal means of obtaining reparation exists, and voidable contracts under Articles 1390-1396 which are annullable within four years unless ratified either expressly or tacitly. Rescissible contracts include those made under insolvency or those intended to defraud creditors, while voidable contracts lack a specific definition but can be annulled even without damages to the parties.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses two types of defective contracts - rescissible contracts under Articles 1381-1387 which can be rescinded to recover damages when no other legal means of obtaining reparation exists, and voidable contracts under Articles 1390-1396 which are annullable within four years unless ratified either expressly or tacitly. Rescissible contracts include those made under insolvency or those intended to defraud creditors, while voidable contracts lack a specific definition but can be annulled even without damages to the parties.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views2 pages

    Defective Contracts Outline

    Uploaded by

    sbb anbw
    The document discusses two types of defective contracts - rescissible contracts under Articles 1381-1387 which can be rescinded to recover damages when no other legal means of obtaining reparation exists, and voidable contracts under Articles 1390-1396 which are annullable within four years unless ratified either expressly or tacitly. Rescissible contracts include those made under insolvency or those intended to defraud creditors, while voidable contracts lack a specific definition but can be annulled even without damages to the parties.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Definition of Defective Contracts

    ● When/when is it not defective?

    Intro: Voidable vs Recissible

    I. Rescissible Contracts (Arts. 1381-1387)


    A. What do we mean by recissible?
    1. Article 1381. The following contracts are rescissible:
    2. Article 1382. Payments made in a state of insolvency for obligations to
    whose fulfillment the debtor could not be compelled at the time they were
    effected, are also rescissible
    3. Article 1383. 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.
    4. Article 1384. Rescission shall be only to the extent necessary to cover the
    damages caused.
    5. Article 1385. Rescission creates the obligation to return the things which
    were the object of the contract, together with their fruits, and the price with
    its interest; consequently, it can be carried out only when he who
    demands rescission can return whatever he may be obliged to restore.
    6. Article 1386. Rescission referred to in Nos. 1 and 2 of Article 1381 shall
    not take place with respect to contracts approved by the courts.
    7. Article 1387. All contracts by virtue of which the debtor alienates property
    by gratuitous title are presumed to have been entered into in fraud of
    creditors, when the donor did not reserve sufficient property to pay all
    debts contracted before the donation.

    II. Voidable contracts (Arts. 1390-1396)


    A. What do we mean by voidable?
    B. Voidable vs void?
    1. Article 1390. The following contracts are voidable or annullable, even
    though there may have been no damage to the contracting parties:
    2. Article 1391. The action for annulment shall be brought within four years.
    3. Article 1392. Ratification extinguishes the action to annul a voidable
    contract.
    4. Article 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.
    5. Article 1394. Ratification may be effected by the guardian of the
    incapacitated person.
    6. Article 1395. Ratification does not require the conformity of the
    contracting party who has no right to bring the action for annulment.
    7. Article 1396. Ratification cleanses the contract from all its defects from
    the moment it was constituted.

    You might also like