{"id":818,"date":"2026-05-16T07:20:00","date_gmt":"2026-05-16T07:20:00","guid":{"rendered":"https:\/\/alexi.pro\/?p=818"},"modified":"2026-05-16T07:24:52","modified_gmt":"2026-05-16T07:24:52","slug":"defective-contracts-contracts-obligations-and-contracts","status":"publish","type":"post","link":"https:\/\/alexi.pro\/index.php\/2026\/05\/16\/defective-contracts-contracts-obligations-and-contracts\/","title":{"rendered":"Defective Contracts | Contracts | OBLIGATIONS AND CONTRACTS"},"content":{"rendered":"<p>[feather\/share]<\/p>\n<p>Under Philippine civil law, contracts can become defective in various ways, potentially invalidating them or limiting their enforceability. Defective contracts are addressed in\u00a0<strong>Book IV, Title II, Chapter 7<\/strong>\u00a0of the\u00a0<strong>Civil Code of the Philippines<\/strong>. A contract&#8217;s defectiveness can arise due to issues with its validity, consent, object, cause, or form. Defective contracts are primarily categorized as\u00a0<strong>(1) Rescissible Contracts<\/strong>,\u00a0<strong>(2) Voidable Contracts<\/strong>,\u00a0<strong>(3) Unenforceable Contracts<\/strong>, and\u00a0<strong>(4) Void or Inexistent Contracts<\/strong>. Each type has distinct features, grounds, and effects, which are as follows:<\/p>\n<h3 id=\"yui_3_17_2_1_1778915360312_279\">1. Rescissible Contracts<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-820\" src=\"https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/hq720-300x169.jpg\" alt=\"\" width=\"376\" height=\"212\" srcset=\"https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/hq720-300x169.jpg 300w, https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/hq720.jpg 686w\" sizes=\"(max-width: 376px) 100vw, 376px\" \/><\/p>\n<p>Rescissible contracts are initially valid and binding, but they may be rescinded, or canceled, due to certain external factors that prejudice the rights of a party or a third person. Articles\u00a0<strong>1380\u20131389<\/strong>\u00a0of the Civil Code govern these contracts.<\/p>\n<h4>Grounds for Rescission<\/h4>\n<p>A contract may be rescinded on the following grounds:<\/p>\n<ul>\n<li><strong>Contracts entered into by guardians<\/strong>\u00a0where the ward suffers a lesion (injury) exceeding one-fourth of the value of the objects in the contract (Art. 1381).<\/li>\n<li><strong>Contracts by representatives<\/strong>\u00a0in cases where the person represented suffers a lesion exceeding one-fourth of the value (Art. 1381).<\/li>\n<li><strong>Contracts made in fraud of creditors<\/strong>\u00a0when the latter cannot otherwise collect the claims (Art. 1381).<\/li>\n<li><strong>Contracts concerning things under litigation<\/strong>\u00a0that are entered into without court approval (Art. 1381).<\/li>\n<li><strong>Other cases specifically provided by law<\/strong>\u00a0(Art. 1381).<\/li>\n<\/ul>\n<h4>Effects and Conditions of Rescission<\/h4>\n<ul>\n<li>Rescission does not apply to cases where\u00a0<strong>the party seeking rescission has no other legal remedy<\/strong>\u00a0to protect their interest (Art. 1383).<\/li>\n<li>The action for rescission must be brought within\u00a0<strong>four years<\/strong>\u00a0(Art. 1389).<\/li>\n<li>Rescission is limited to\u00a0<strong>the extent of the damage caused<\/strong>, making it a partial relief (Art. 1384).<\/li>\n<\/ul>\n<h3>2. Voidable Contracts<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-821\" src=\"https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/BP_voidable-contract-300x158.png\" alt=\"\" width=\"353\" height=\"186\" srcset=\"https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/BP_voidable-contract-300x158.png 300w, https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/BP_voidable-contract-1024x538.png 1024w, https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/BP_voidable-contract-768x403.png 768w, https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/BP_voidable-contract-1536x806.png 1536w, https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/BP_voidable-contract-2048x1075.png 2048w\" sizes=\"(max-width: 353px) 100vw, 353px\" \/><\/p>\n<p>Voidable contracts are valid until they are annulled. These contracts contain vitiated consent, meaning the consent of one of the parties was affected by mistake, violence, intimidation, undue influence, or fraud (Articles\u00a0<strong>1390\u20131402<\/strong>).<\/p>\n<h4>Grounds for Annulment<\/h4>\n<p>A contract is voidable if:<\/p>\n<ul>\n<li><strong>One party was incapacitated<\/strong>\u00a0to give consent (e.g., minor or mentally incapacitated) (Art. 1390).<\/li>\n<li><strong>Consent was vitiated<\/strong>\u00a0by mistake, violence, intimidation, undue influence, or fraud (Art. 1390).<\/li>\n<\/ul>\n<h4>Effects and Conditions for Annulment<\/h4>\n<ul>\n<li>A voidable contract is\u00a0<strong>binding until annulled<\/strong>\u00a0by a court.<\/li>\n<li>The\u00a0<strong>action to annul<\/strong>\u00a0based on incapacity or vitiated consent must be filed\u00a0<strong>within four years<\/strong>\u00a0(Art. 1391).<\/li>\n<li>If annulled, parties\u00a0<strong>must return what they have received<\/strong>\u00a0under the contract (Art. 1398).<\/li>\n<li><strong>Ratification<\/strong>\u00a0can validate a voidable contract, extinguishing the grounds for annulment (Art. 1392\u20131396).<\/li>\n<\/ul>\n<h3 id=\"yui_3_17_2_1_1778915360312_289\">3. Unenforceable Contracts<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-822\" src=\"https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/images-3-1.jpg\" alt=\"\" width=\"354\" height=\"198\" \/><\/p>\n<p>Unenforceable contracts are agreements that cannot be enforced by action in court unless they are ratified. These are covered under Articles\u00a0<strong>1403\u20131408<\/strong>.<\/p>\n<h4>Types of Unenforceable Contracts<\/h4>\n<ul>\n<li><strong>Contracts entered into without authority<\/strong>\u00a0or exceeding the authority of the agent.<\/li>\n<li><strong>Contracts that do not comply with the Statute of Frauds<\/strong>\u00a0(Art. 1403).<\/li>\n<li><strong>Contracts where both parties are incapable of giving consent<\/strong>\u00a0(Art. 1403).<\/li>\n<\/ul>\n<h4>Effects and Ratification of Unenforceable Contracts<\/h4>\n<ul>\n<li>They are\u00a0<strong>unenforceable in court<\/strong>\u00a0unless ratified.<\/li>\n<li><strong>Ratification<\/strong>\u00a0makes the contract enforceable (Art. 1405).<\/li>\n<li><strong>In pari delicto rule<\/strong>\u00a0applies, meaning neither party can sue the other if both are at fault (Art. 1406).<\/li>\n<\/ul>\n<h3>4. Void or Inexistent Contracts<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-823\" src=\"https:\/\/alexi.pro\/wp-content\/uploads\/2026\/05\/images-4.jpg\" alt=\"\" width=\"357\" height=\"200\" \/><\/p>\n<p>Void contracts have no effect from the beginning and cannot be ratified. Articles\u00a0<strong>1409\u20131422<\/strong>\u00a0discuss void contracts.<\/p>\n<h4>Grounds for Void Contracts<\/h4>\n<p>A contract is void if it:<\/p>\n<ul>\n<li><strong>Lacks an essential requisite<\/strong>\u00a0(e.g., consent, object, or cause) (Art. 1318).<\/li>\n<li><strong>Is contrary to law, morals, good customs, public order, or public policy<\/strong>\u00a0(Art. 1409).<\/li>\n<li><strong>Is simulated<\/strong>, meaning the parties do not intend the contract to be legally binding (Art. 1345\u20131346).<\/li>\n<li><strong>Involves impossible or unlawful objects<\/strong>\u00a0(Art. 1409).<\/li>\n<li><strong>Is expressly prohibited or declared void by law<\/strong>\u00a0(Art. 1409).<\/li>\n<\/ul>\n<h4>Effects of Void Contracts<\/h4>\n<ul>\n<li>A void contract\u00a0<strong>produces no legal effect<\/strong>\u00a0(Art. 1409).<\/li>\n<li>Parties to a void contract\u00a0<strong>cannot compel performance or seek damages<\/strong>.<\/li>\n<li>If the contract involves\u00a0<strong>illegal cause or object, and both parties are at fault (in pari delicto)<\/strong>, neither party can recover what they have given under the contract (Art. 1411).<\/li>\n<li>Exceptions exist where\u00a0<strong>public interest<\/strong>\u00a0is involved, allowing innocent parties to recover under certain circumstances (Art. 1412).<\/li>\n<\/ul>\n<h4>Special Rules for Void Contracts Involving Immoral Considerations<\/h4>\n<ul>\n<li>Contracts involving acts against public policy or that encourage illegal activities are void.<\/li>\n<li>Recovery is permitted under certain exceptions, such as when public interest or the innocent party is at risk (Art. 1414\u20131422).<\/li>\n<\/ul>\n<hr \/>\n<h3>Summary and Practical Implications<\/h3>\n<p>In practice, understanding the classification of a defective contract is crucial as it affects how one may contest or enforce the contract. Key differences between these defective contracts are based on their validity, the possibility of ratification, the need for annulment or rescission, and the enforceability of obligations arising from the agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[feather\/share] Under Philippine civil law, contracts can become defective in various ways, potentially invalidating them or limiting their enforceability. Defective contracts are addressed in\u00a0Book IV, Title II, Chapter 7\u00a0of the\u00a0Civil Code of the Philippines. A contract&#8217;s defectiveness can arise due to issues with its validity, consent, object, cause, or form. Defective contracts are primarily categorized [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/posts\/818"}],"collection":[{"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/comments?post=818"}],"version-history":[{"count":2,"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/posts\/818\/revisions"}],"predecessor-version":[{"id":825,"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/posts\/818\/revisions\/825"}],"wp:attachment":[{"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/media?parent=818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/categories?post=818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alexi.pro\/index.php\/wp-json\/wp\/v2\/tags?post=818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}