Types of Defective Contracts:

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THERE ARE FOUR KINDS OF DEFECTIVE CONTRACTS.

THEY ARE IN THE ORDER OF THEIR DEFECTIVENESS

OR EFFICACIOUSNESS:

INTRODUCTION

(1) Rescissible contracts. — They are the least infirm or defective.

They are valid because all the essential requisites of a contract exist

but by reason of injury or damage to one of the parties or to third

persons, such as creditors, the contract may be rescinded. Thus, the

defect is external. Until such contracts are rescinded in an

appropriate proceeding, they remain valid and binding upon the

parties thereto (Chap. 6.);

(2) Voidable contracts. — They are also valid until annulled unless

there has been a ratification. In a voidable contract, the defect is

caused by vice of consent (Chap. 7.);

(3) Unenforceable contracts. — They cannot be sued upon or

enforced unless they are ratified. As regards the degree of

defectiveness, voidable contracts are further away from absolute

nullity than unenforceable contracts. In other words, an

unenforceable contract occupies an intermediate ground between a

voidable and a void contract (Chap. 8.); and

(4) Void or inexistent contracts. — They are absolutely null and

void. They have no legal effect at all and cannot be ratified. (Chap.

9.) According to the Code Commission which prepared the draft of

the present Civil Code, a great deal of confusion has been created by

the faulty terminology used in the old Civil Code as regards

defective contracts. There was no sufficient clarity as to contratos