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    CW3 - 4

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    Rigel Zabate
    (1) This document analyzes two case problems regarding unenforceable contracts under Philippine law. (2) The first problem involves a contract between an insane person and a minor, and whether ratification by either or both after becoming incapacitated would make the contract enforceable. The analysis is that ratification would not take effect because both parties were incapable of consent at the time of the contract. (3) The second problem involves an oral promise by a third party to assume another's debt. The analysis is that the third party cannot prove the promise through witness testimony due to the Statute of Frauds, and as a third party they cannot challenge the enforceability of the original contract.

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    CW3 - 4

    Uploaded by

    Rigel Zabate
    3K views2 pages
    (1) This document analyzes two case problems regarding unenforceable contracts under Philippine law. (2) The first problem involves a contract between an insane person and a minor, and whether ratification by either or both after becoming incapacitated would make the contract enforceable. The analysis is that ratification would not take effect because both parties were incapable of consent at the time of the contract. (3) The second problem involves an oral promise by a third party to assume another's debt. The analysis is that the third party cannot prove the promise through witness testimony due to the Statute of Frauds, and as a third party they cannot challenge the enforceability of the original contract.

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    (1) This document analyzes two case problems regarding unenforceable contracts under Philippine law. (2) The first problem involves a contract between an insane person and a minor, and whether ratification by either or both after becoming incapacitated would make the contract enforceable. The analysis is that ratification would not take effect because both parties were incapable of consent at the time of the contract. (3) The second problem involves an oral promise by a third party to assume another's debt. The analysis is that the third party cannot prove the promise through witness testimony due to the Statute of Frauds, and as a third party they cannot challenge the enforceability of the original contract.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    3K views2 pages

    CW3 - 4

    Uploaded by

    Rigel Zabate
    (1) This document analyzes two case problems regarding unenforceable contracts under Philippine law. (2) The first problem involves a contract between an insane person and a minor, and whether ratification by either or both after becoming incapacitated would make the contract enforceable. The analysis is that ratification would not take effect because both parties were incapable of consent at the time of the contract. (3) The second problem involves an oral promise by a third party to assume another's debt. The analysis is that the third party cannot prove the promise through witness testimony due to the Statute of Frauds, and as a third party they cannot challenge the enforceability of the original contract.

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    © All Rights Reserved
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    of 2

    Case Analysis on Chapter 8

    Unenforceable Contracts
    Dela Rea, Kimmi F.
    Mapua Institute of Technology
    School of Electrical, Electronics and Computer Engineering
    Muralla St. Intramuros, Manila
    kdelarea32@yahoo.com

    This paper is a Case Analysis on Chapter 8


    Unenforceable Contracts. The problems assigned to
    Group 9 are in the following:
    Problem 1
    I, an insane person, entered into a contract with
    M, a minor. What is the effect of ratification?
    (a) By either; and
    (b) By both, after becoming incapacitated

    Problem 2
    D(debtor) owes C (creditor) P10,000. T (third
    person) orally promised to assume the obligation to D. Can
    the promise of T be proved by the testimony of a witness
    who was present when T made the same?

    ARTICLES RELATED ON THE PROBLEMS


    Article 1403
    The following contracts are unenforceable, unless
    they are ratified:

    (1) Those entered into the name of another person by one


    who has been given no authority or legal
    representation, or who has acted beyond his powers;
    (2) Those that do not comply with the Statute of Frauds
    as set forth in this number. In the following cases, an
    agreement hereafter made shall be unenforceable by
    action, unless the same, or some note to
    memorandum thereof, be in writing, and subscribed
    by the party charged, or by his agent; evidence,
    therefore, of the agreement cannot be received
    without the writing, or a secondary evidence of its
    contents:
    a. An agreement that by its terms is not to be
    performed within a year from the making
    thereof;
    b. A special promise to answer for the debt,
    default, or miscarriage of another;
    c. An agreement made in consideration of
    marriage, other than mutual promise to
    marry;
    d. An agreement for the sale of goods, chattels,
    or things in action, at a price not less than
    Five hundred pesos, of such goods and
    chattels, or the evidences, or some of them,
    of such things in action, or pay at the time
    some part of the purchase money; but when
    a sale is made by auction and entry is made
    by the auctioneer in his sales book, at the
    time of the sale, of the amount and kind of
    property sold, terms of sale, price, names of
    the purchasers and persons on whose
    account the sale is made, it is sufficient
    memorandum;
    e. An agreement for the leasing for a longer
    period than one year, or for the sale of real
    property or of an interest therein;
    f. A presentation as to the credit of a third
    person.
    (3) Those where both parties are incapable of giving
    consent to a contract.

    Article 1408
    Unenforceable contracts cannot be assailed by third
    person.

    PROBLEMS WITH ANSWERS


    Problem 1
    I, an insane person, entered into a contract with
    M, a minor. What is the effect of ratification?
    (a) By either; and
    (b) By both, after becoming incapacitated
    (a) With either the insane person with the minor, the
    ratification will not take effect because both parties
    are incapable of giving. It was stated in Article 1403,
    paar. 3 that those parties are incapable of giving
    consent of contract are unenforceable.
    (b) After becoming incapacitated, it will also fall under
    Article 1403 par. 3 that both parties are incapable of
    giving. Both parties to a contract are incapable of
    giving consent, the contract in unforceable.

    Problem 2
    D(debtor) owes C (creditor) P10,000. T (third
    person) orally promised to assume the obligation to D. Can
    the promise of T be proved by the testimony of a witness
    who was present when T made the same?
    -No, because T cannot assail the contract between D
    and C for being unenforceable under the Statute of Frauds. T
    is a stranger to the contract. T can neither assail a contract
    because of its unenforceability. It was stated in Article 1408,
    unenforceable contracts cannot be assailed by third person.

    Third person

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