Buslaw 1

De La Salle University
Comlaw Department
Obligations and
Contracts
Book IV, New Civil Code
Title 2, Chapter 6-9
Defective Contracts
CHAPTER 6 to 9. – “Defective Contracts”
OVERVIEW OF DEFECTIVE CONTRACTS

Defective Contracts are contracts that suffer from some infirmity or deficiency during or
after the creation of the contract. Like most things in life, the extent of the infirmity or
deficiency would determine how defective the contract is. The different defective contracts
according to the degree of their impairment are as follows:
Rescissible Contracts – The defect lies in the motive or performance of the contract
Voidable Contracts – The defect lies in the consent of the parties
Unenforceable Contracts – The defect lies in the terms and forms
Void Contracts – The defect lies in the elements of the contract

In all but Void Contracts, the ratification by the parties of the contract will effectively
correct the defect, hence making the defective contract valid
Obligations and
Contracts
Book IV, New Civil Code
Title 2, Chapter 6
Rescissible Contracts
CHAPTER 6. – Rescissible Contracts
ARTICLE 1380. Contracts validity agreed upon may be rescinded in the
cases established by law.

Essentially, this Article stresses the fact that rescissible contracts are validly
executed contracts that can be cancelled or nullified in cases provided by law.

This means that rescissible contracts complies with all the essential requisites
and has all the necessary elements of a valid contract but the defect is found
outside of these requisites or elements.
CHAPTER 6. – Rescissible Contracts
ARTICLE 1381. The following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom
they represent suffer lesion by more than one-fourth of the value of the
things which are the objects thereof;
(2) Those agreed upon in representation of absentees, if the latter suffer
the lesion stated in the preceding number;
(3) Those undertaken in fraud of creditors when the latter cannot in any
other manner collect the claims due them;
(4) Those which refer to things under litigation if they have been entered
into by the defendant without the knowledge and approval of the litigants
or of competent judicial authority;
(5) All other contracts specially declared by law to be subject to rescission.
CHAPTER 6. – Rescissible Contracts
This article enumerates some of the instances where contracts can be rescinded by
the parties.

In items (1) and (2) these are contracts entered into in representation of others
where the person represented suffers a loss of more than 25% of the value. Note
that mere loss on the part of the obligor or gain on the part of the obligee does not
automatically mean the contract is rescissible.

Item (3) are valid contracts entered into to defraud creditors.

Item (4) refers to contracts which has for their object things that should not yet
be subjects of a contract because of the controversy it is involved in.

Item (5) refers to all other cases provided for by law (which are a lot)
CHAPTER 6. – Rescissible Contracts
ARTICLE 1382. Payment in a state or insolvency for obligation to
whose fulfillment the debtor could not be compelled at the time they
were effected, are also rescissible.
This is essentially a contract in fraud of other creditors.

ARTICLE 1383. The action for rescission is subsidiary; it cannot be instituted

except when the party suffering damage has no other means to obtain
reparation for the same.

Rescission should only be sought by the parties if there are no other remedies available
for the party who suffers damage in order to remedy the problem.
CHAPTER 6. – Rescissible Contracts
ARTICLE 1384. Rescission shall only be to the extent necessary to cover the
damages caused.
Rescission is a remedy to the damage caused and cannot cover more than that

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 demand
rescission can return whatever he may be obliged to restore.

Neither shall rescission take place when the things which are the object of the
contract are legally in the possession of third person who did not act in bad faith

In this case, indemnity for damages may be demanded from the person causing
the loss.
CHAPTER 6. – Rescissible Contracts
Although rescission nullifies a contract, it can also create new obligations on the
parties particularly when it entails the return of the things given or sums paid to the
obligee back to the obligor. (1st par.)

Generally however, when the thing to be returned is already in the possession of a

third party who legally acquired the property in good faith, then the return of the
thing cannot be made without prejudicing the third party. This prevents the return
of the object not viable, hence the innocent party can ask for the value of the thing to
be returned instead. (2nd and 3rd par.)
CHAPTER 6. – Rescissible Contracts
ARTICLE 1386. Rescission referred to in Nos. 1 and 2 of article 1381
shall not take place with respect to the contracts approved by the
courts.
Rescission for of contracts made in representation can only be done through the courts.
This is because the “lesion” or damage must be determined and proved in court in order
to determine if the “lesion” or damage is of such extent as to nullify the valid contract
that has been entered into.
CHAPTER 6. – Rescissible Contracts
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 to pay all
debts contracted before donation.

Alienation by onerous title are also presumed fraudulent when made

by persons against whom whose judgment has been rendered in any
instance or some writ of attachment has been issued. The decision or
attachment need not refer to the property alienated, and need not have
been obtained by the party seeking the rescission.

In addition to these presumptions, the design to defraud creditors may

be proved in any other manner recognized by the law of evidence.
CHAPTER 6. – Rescissible Contracts
This article provides the more obvious instances where a contract is deemed to be
rescissible for being in fraud of creditors.
1st Paragraph refers to giving away ones properties without leaving enough to
pay the creditors.
2nd Paragraph refers to selling of properties by a defendant in a case that he lost
of because of which a writ of attachment has been issued.

These presumes the contract of donating of selling fraudulent to creditors as such

acts suspiciously appears to be to avoid paying the creditors of the debtor.

But these are disputable presumptions and may be proven otherwise. Similarly,
other evidences may be presented to prove the transaction was in fraud of
creditors.
CHAPTER 6. – Rescissible Contracts
ARTICLE 1388. Whoever acquires in bad faith the things alienated in
fraud of creditors, shall indemnify the latter for damages suffered by
them on account of the alienation, whenever, due to any cause, it
should be impossible for him to return to them.

If there are two or more alienators, the first acquirer shall be liable first,
and so on successively.

This is a case where a party took things from the debtor in order to protect the
said property from being “acquired” or “sold off” in order to pay for the debtor’s
obligation. In this case, the third party is also made liable for fraud.
CHAPTER 6. – Rescissible Contracts
ARTICLE 1389. The action to claim rescission must be commenced in
four years.

For person under guardianship and for absentees, the period of four
years shall not begin until the termination of the formers incapacity, or
until the domicile of the latter is known.

Failure to bring the action of rescission within the time prescribed, bars the party
seeking rescission from filing an action in court due to laches (“or prescription)
Obligations and
Contracts
Book IV, New Civil Code
Title 2, Chapter 7
Voidable Contracts
CHAPTER 7. – Voidable Contracts
ARTICLE 1390. The following contracts are voidable or annullable,
even though they may have been no damage to the contracting parties:

(1) Those where one of the parties is incapable of giving consent to a

contract;
(2) Those where the consent is vitiated by mistake, violence,
intimidation, undue influence or fraud.

These contracts are binding, unless they are annulled by a proper

action in court. They are susceptible of ratification.

In Voidable Contracts, damage to the innocent party is not essential for the
contract to be voided. This is because the consent of the party was defective in
the first place so the contract becomes defective.
CHAPTER 7. – Voidable Contracts
Defective Consent of a Party
Party was incapable of giving consent in the first place (Art. 1327):
 Minors
 Deaf-Mutes who cannot read or write
 Insane or demented persons
Consent was secured under the following conditions (Vitiated Consent):
 Violence (Art. 1335-1336)
 Intimidation (Art. 1335-1336)
 Mistake (Art. 1331-1334)
 Fraud (Art. 1338-1344)
 Undue Influence (Art. 1337)
CHAPTER 7. – Voidable Contracts
ARTICLE 1391. The action for annulment shall be brought within four
years.

This period shall begin:

In cases of intimidation, violence or undue influence, from the time

the defect of the consent ceases.

In cases of mistake or fraud, from the time of discovery of same.

And when the action refers to the contracts entered into by minors
or other incapacitated persons, from the time the guardianship ceases.

Failure to bring the action within the time provided means that the party can no
longer file an action for annulment due to laches (or prescription).
CHAPTER 7. – Voidable Contracts
ARTICLE 1392. Ratification extinguishes the action to annul a voidable
contract.

Ratification of the defect in a voidable contract corrects the defect so the contract
can no longer be annulled.

ARTICLE 1393. Ratification may be effected expressly or tacitly. It is

understood that there is a tacit ratification if, with knowledge of the
reason having ceased, the person has the right to invoke it should
execute an act which necessarily implies an intention to waive his right.

Ratification may be expressly made or implied from a party’s actions

CHAPTER 7. – Voidable Contracts
ARTICLE 1394. Ratification may be effected by the guardian of the
incapacitated person.

Just as minors or incapacitated persons cannot give consent in a contract, they

cannot also ratify voidable contracts. Guardians are the ones to ratify the same.

ARTICLE 1395. Ratification does not require the conformity of the

contracting party who has no right to bring the action for annulment.

Ratification of voidable contracts does not require the consent of the party that
gave rise to the defect in the contract.
CHAPTER 7. – Voidable Contracts
ARTICLE 1396. Ratification cleanses the contract from all its defects
from the moment it was constituted.

The effect of the ratification retro-acts from the time contract was created.

ARTICLE 1397. The action for the annulment of contracts may be

instituted by all who are thereby obliged principally or subsidiary.
However, persons who are capable cannot allege the incapacity of those
with whom they contracted; nor can those who exerted intimidation,
violence, or undue influence, or employed fraud, or caused mistake
base their action upon these flaws of the contract.

This Article lists down who can file for an action of annulment but does not
allow the person who was guilty to ask for annulment.
CHAPTER 7. – Voidable Contracts
ARTICLE 1398. An obligation having been annulled, the contracting
parties shall restore to each other the things which has been the subject
matter of the contract, with their fruits, and the price with its interest,
except in cases provided by law.

In obligation to render service, the value thereof shall be the basis for
damages.

Like Rescission (Art. 1385), in annulment, there is created an obligation to

restore what may have been given or paid by the contracting parties to each
other.
CHAPTER 7. – Voidable Contracts
ARTICLE 1399. When the defect of the contract consist in the
incapacity of one of the parties, the incapacitated person is not obliged
to make any restitution except insofar as he had been benefited by the
thing or price received by him.

The obligation to return what has been received shall apply only to incapacitated
persons if they kept it or when what he/she received benefited him/her.

ARTICLE 1400. Whenever the person obliged by the decree of

annulment to return the thing can not do so because it has been lost
through his fault, he shall return the fruits received and the value of
the thing at the time of the loss, with interest of he same date.

Same rules as loss of the thing due.

CHAPTER 7. – Voidable Contracts
ARTICLE 1401. The action for annulment of contracts shall be
extinguished when the thing which is the object thereof is lost through
the fraud or fault of the person who has the right to institute the
proceedings.

If the right of the action is based upon the incapacity of any one of the
contracting parties, the loss of the thing shall not be an obstacle to the
success of the action, unless said loss took place through the fraud or
fault of the plaintiff.

No annulment can be sought if the thing to be restored was lost through the fault
of the person entitled to annul the contract or the guardian/representative of the
incapacitated person.
CHAPTER 7. – Voidable Contracts
ARTICLE 1402. As long as one of the contracting parties does not
restore what in virtue of the decree of annulment he is bound to return,
the other cannot be compelled to comply with what is incumbent upon
him.

So long as there is no restoration of what one party is required to restore, the

other party cannot be forced to make restoration on his part.
Obligations and
Contracts
Book IV, New Civil Code
Title 2, Chapter 8
Unenforceable Contracts
CHAPTER 8. – Unenforceable Contracts
ARTICLE 1403. The following contracts are unenforceable, unless they are ratified:

(1) Those entered into in 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 or memorandum
thereof, be in writing and subscribed by the party charged, or by his agent; evidence, thereof, 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;
(b) An agreement made in consideration of marriage, other than mutual promise to marry;
(c) An agreement for the sale of goods, chattels, or things in action, at a price not less than five hundred pesos, unless
the buyer accept and receive part of such goods and chattels, or the evidences, or some of them, of such things in
action, or part of 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 a sufficient memorandum;
(d) An agreement for the leasing for a longer period than one year, or for the sale of real property or of the interest
therein;
(e) A representation as to the credit of a third person.

(3) Those were both parties are incapable of giving consent to a contract.
CHAPTER 8. – Unenforceable Contracts
Unenforceable Contracts are contracts that seem to be valid but cannot be given
binding effect on the parties due to the following:

1. Lack of or in excess of authority by one of the parties (unauthorized contracts)

2. Failure to comply with the Statutes of Fraud
3. Lack of capacity of both persons to enter into the contract.

Statutes of Fraud is a provision of the Civil Code and other laws that dictates a
certain form to be respected in order that the contract can be proven and
enforced. Failure to comply with the form will make the contract, even if validly
entered into, without legal effect except to force the other party to put the
contract in the proper form (Title 2, Chapter 3).
CHAPTER 8. – Unenforceable Contracts
ARTICLE 1404. Unauthorized contracts are governed by article 1317 and
the principles of agency in Title X of this Book.

Contracts entered into under the authority granted by another is effectively a

Contract of Agency which is governed specifically by that law.

If the contract entered into was unauthorized, then Art. 1317 would come into play
which cover such instances and also by the rules of Agency as the most analogous
nominate contract.

ARTICLE 1405. Contracts infringing the Statute of Frauds, referred to in

No. 2 of article 1403, are ratified by the failure to object to the presentation
of oral evidence to prove the same, or by the acceptance of benefits under
them.

Unenforceable Contracts caused by the Statutes of Fraud can be ratified.

CHAPTER 8. – Unenforceable Contracts
ARTICLE 1406. When a contract is enforceable under the statute of
Frauds, and a public document is necessary for its registration in the
Registry of Deeds, the parties may avail themselves of the rights under
article 1357.

In this instance, the contract is enforceable but because it has not been notarized
the document could not be enforced. In which case Art. 1357, which allows one
party to file an action in order force the other party to comply with the required
form of the contract, will come into play.
CHAPTER 8. – Unenforceable Contracts
ARTICLE 1407. In a contract were both parties are incapable of giving
consent, express or implied ratification by the parent, or guardian, as
the case may be, of one of the contracting parties shall give the contract
the same effect as if only one of them is incapacitated.

If ratification is made by the parents or guardian, as the case may be

of both contracting parties, the contract shall be validated from the
inception.

Because the incapacitated person cannot give valid consents, they also cannot
ratify their own consent to a contract. Thus, only the guardians can ratify the
defective consent of incapacitated persons.
CHAPTER 8. – Unenforceable Contracts
ARTICLE 1408. Unenforceable contracts cannot be assailed by a third
person.

If the parties (and their guardians) to an unenforceable contract agree to be

bound by the same despite the fact that the contract is unenforceable, strangers to
the contract cannot question their wishes.
Obligations and
Contracts
Book IV, New Civil Code
Title 2, Chapter 9
Void or Inexistent Contracts
CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1409. The following contracts are inexistent and void from the
beginning:

1. Those whose cause, objects or purpose is contrary to law, morals, good

customs, public order or public policy;
2. Those which are absolutely simulated or fictitious;
3. Those whose cause or objects did not exist at the time of the transaction;
4. Those whose objects is outside the commerce of men;
5. Those which contemplate an impossible service;
6. Those where the intention of the parties relative to the principal object of
the contract cannot be ascertained;
7. Those expressly prohibited or declared void by law.

These contracts cannot be ratified. Neither can the right to set up the defense
of illegality be waived.
CHAPTER 9. – Void or Inexistent Contracts
All the contracts enumerated are considered non-existent and will not give any
legal effect no matter what the parties do because the defect goes into the very
essence of the contract.

In these cases, what is missing is one of the essential elements of the contract
which prevents the creation of any contract.

ARTICLE 1410. The action or defense for the declaration of inexistence

of a contract does not prescribe.

Void contracts can be assailed at any time. Once a contract is void, it would
always be void so there is no time limit to question it.
CHAPTER 9. – Void or Inexistent Contracts
ART. 1411. When the nullity proceeds from the illegality of the cause
or the object of the contract, and the act constitute a criminal offense,
both parties being in pari delicto, they shall have no action against each
other, and both shall be prosecuted. Moreover the provision of the
Penal Code relative to the disposal of effects or instruments of a crime
shall be applicable to the things or the price of the contract.

Pari Delicto means both parties are at fault. This means that between criminals
they cannot sue each other for any right or redress from the other. This is
because as parties to a criminal act, they cannot rely on the powers of the law and
the court to enforce something that the law prohibited in the first place.
CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1412. If the act in which the unlawful or forbidden cause
consist does not constitute a criminal offense, the following rules shall
be observed:

1. When the fault is on the part of both contracting parties, neither

may recover what he has given by virtue of the contract, or demand
the performance of the other’s undertaking;
2. When only one of the contracting parties is at fault, he cannot
recover what he has given by reason of the contract, or ask for the
fulfillment of what has been promised him. The other who is not at
fault, may demand the return of what he has given without any
obligation to comply with his promise. (1306)

This Article covers void contracts that do not come from an illegal act.
CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1413. Interest paid in excess of the interest allowed by the
usury laws may be recovered by the debtor, with interest thereon from
the date of the payment.

This provision no longer has any effect because of the suspension of the Usury
Law.

ARTICLE 1414. When money is paid or property delivered for an

illegal purpose, the contract may be repudiated by one of the parties
before the purpose has been accomplished, or before any damage has
been cause to a third person. In such case, the courts may, if the public
interest will thus be subserved, allow the party repudiating the contract
to recover the money or property.

Until the criminal act takes place either parties may repudiate the same.
CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1415. Where one of the parties to an illegal contract is
incapable of giving consent, the court may, if the interest of justice so
demands, allow recovery of money or property delivered by the
incapacitated person.

Incapacitated persons are presumed to have acted without discernment so they

are given leeway by the law in case of Void or Inexistent Contracts.

ARTICLE 1416. When the agreement is not illegal per se but is merely
prohibited, and the prohibition by the law is designed for the
protection of the plaintiff, he may, if public policy is thereby enhanced,
recover what he has paid or delivered.

Prohibited Contracts that are not criminal allows for recovery of what has been
paid or delivered if it will enhance public policy.
CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1417. When the price of any article or commodity is
determined by statute, or by authority of law, any person paying any
amount in excess of the maximum price allowed may recover such
excess.

This is the fundamental basis for DTI’s powers to impose the Price Ceiling of
goods.

ARTICLE 1418. When the law fixes, or authorizes the fixing of the
maximum number of hours of labor, and a contract is entered into
whereby a laborer undertakes to work longer than the maximum thus
fixed, he may demand additional compensation for service rendered
beyond the time limit.

This is the fundamental basis for Overtime pay.

CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1419. When the law sets, or authorizes the setting of a
minimum wage for laborers, and a contract is agreed upon by which a
laborer accepts a lower wage, he shall be entitled to recover the
deficiency.

This is the fundamental basis for the Minimum Wage.

ARTICLE 1420. In case of divisible contract, if the illegal terms can be

separated from the legal ones, the latter may be enforced.

In the case of divisible contracts, if it is possible to separate the legal aspect from
the illegal aspect of the contract, then it should be done to give contracts the most
legal effect as possible.
CHAPTER 9. – Void or Inexistent Contracts
ARTICLE 1421. The defense of illegality of contracts is not available to
third persons whose interest is not directly affected.

Persons not affected by the illegal contract are not allowed to use the same illegal
contract to benefit themselves.

However, third parties who are affected by the illegal or void contract can assail
the same even if they are not parties thereto.

ARTICLE 1422. A contract which is the direct result of a previous

illegal contract, is also void and inexistent.

If the root of a contract is an illegal or void contract, then the later contract is
also considered void.
Buslaw 1
Study Guide
MODIFIED TRUE OR FALSE
1. All defective contracts can be ratified to make it valid.
2. Rescissible contracts are valid contracts.
3. Breaches of contracts make valid contracts rescissible.
4. Contracts entered into by guardians relating to properties of minors are
rescissible.
5. Contracts entered into by a person of a mortgaged property to raise money
to pay the mortgage is deemed in fraud of creditors and hence rescissible.
6. A person who pays a debt that is not yet due is presumed to be in fraud of
creditors.
7. Rescission of contracts is an option that can be exercised at any time by the
innocent party if there is a breach of contract.
MODIFIED TRUE OR FALSE
8. A party can ask for rescission even after the party had initially asked for
fulfillment of the contract.
9. A party can ask for rescission of the contract even before asking for
fulfillment of the contract.
10. Rescission of contracts is an all or nothing proposition.
11. In the event of fraud in a contract, rescission is the remedy.
12. A contract cannot be created from an offer which is uncertain.
13. Donations of property made by a debtor is deemed to be in fraud of
creditors.
14. A contract of a for a 10 year lease cannot be rescinded after 5 years since the
action for rescission can only be brought within 4 years.
MODIFIED TRUE OR FALSE
15. In voidable contracts, the defect in the contract is with the consent of one of
the parties.
16. Voidable contracts remain enforceable until it is annulled.
17. Voidable contract can still be novated before it is annulled.
18. Ratification of a voidable contract only waives the right to annul the
contract and does not make the contract valid.
19. Ratification of contracts can only be made by the person whose consent is
defective.
20. In voidable contracts, parties are generally required to return what they
have received from the other party.
21. Fraud that vitiates consent are causal fraud.
MODIFIED TRUE OR FALSE
22. A party who cannot return what he or she had gotten from the other party
cannot ask for annulment of the contract.
23. Statutes of Fraud are provisions of the law that governs fraud relating to the
creation of contracts.
24. A contract created by a minor and an insane person is an unenforceable
contract.
25. Parties to an unenforceable contract may not voluntarily be bound by the
terms of the contracts because the contract is not enforceable.
26. Mutual promises to marry made in a public document is valid and binding.
27. If a contract is unenforceable under the statutes of fraud, the said contract
cannot be proved in court.
28. Unenforceable contracts can be ratified by the parties.
MODIFIED TRUE OR FALSE
29. Guardians who ratify a contract of a minor with another minor makes the
contract valid and binding.
30. Third parties or strangers to an unenforceable contract cannot have the
contract declared unenforceable.
31. Void contracts may be ratified or novated before it is declared void.
32. A party who did not contest the void status of a contract are prohibited
from raising the same to contest the contract.
33. Waiver of future fraud is valid only if made in a public document.
34. A void contract will always be void but can only be contested only after 4
years from the creation of the contract.
35. Parties to an illegal contract which constitutes as a crime is binding on both
parties but they can be both prosecuted by law.
MODIFIED TRUE OR FALSE
36. All unlawful contracts are void because they are criminal in nature.
37. Void contracts because it is illegal may be repudiated at any time by the
party who is innocent to the illegality.
38. In illegal contracts, parties are left to their own devices to suffer for their
own respective losses when the contract is declared void.
39. Absolute simulation can never give rise to a valid contract.
40. Void provisions of the contract may be declared void without affecting the
entire contract if the provisions are divisible.
ENUMERATIONS/DEFINITIONS
1. What are the kinds of contracts according to validity?
2. What are the contracts that are rescissible?
3. When does the right to rescind contracts prescribe?
4. What are the voidable contracts?
5. When does the prescriptive period to contest voidable contracts start?
6. What are unenforceable contracts?
7. What contracts need to be in writing to be enforceable under the statutes of
fraud?
8. What are the void contracts under the laws of contracts?
PROBLEM SOLVING
Problem 1. – Edwin, a minor, purchased a textbook at National Bookstore for
one of his subject. When he came home, he showed the book to his mom and
his parent, who as also teaching the same subject, noticed that the book Edwin
bought was not what was prescribed in the syllabus. After rechecking, Edwin
realized his parent was correct. The next day, Edwin went to Nationals to have
the book changed, but Nationals refused to change the book as all sales made
by the bookstore is final unless there is a defect in the product. Admittedly,
there were no defects in the book and the case was a simple case of error in
what book needed to be bought. If you were the parent, how would you argue
with Nationals to have the book changed? Justify.
PROBLEM SOLVING
Problem 2. – Tito, a battered husband, hired Palos to kill his wife next month in
exchange for P50,000. After having delivered the amount to Palos, Tito came
home and found his wife in prayers and she told him that she had a realization
that if she wanted to keep her husband then she would have do her share in
trying to save their marriage. And then she changed and became a very caring
wife. Because of the change and his wife’s seeming sincerity to make their
marriage work, Tito wanted to annul the contract with Palos.
Can Tito have the contract with Palos annulled? Justify.
Can Tito recover the amount he paid to Palos? Justify.
Will Tito be liable for criminal liability? Justify
PROBLEM SOLVING
Problem 3. – Toto was out last night drinking with his friend Jazmine who just
broke up with her boyfriend. Toto was trying to lift the spirits of Jazmine up
because Jazmine was saying she was afraid that she will die a single person
because no one wanted her. In the process they consumed substantial amounts
of alcohol and got very drunk. At this time, they came up with a pact to get
married with each other if at the age of 30 both of them were still single and
signed a napkin which contained their agreement. The next morning, they
woke up and the first thing Toto did was to call Jazmine up and asked her if she
remembered anything from last night. Jazmine said everything was fuzzy but
she thanked Toto for listening to her and trying to lift her spirits up. Given that
both of them were drunk, is the agreement voidable, unenforceable or void?
Justify.
PROBLEM SOLVING
Problem 3. (continued) – Later that day, Toto and Jazmine found the napkin they
signed (each of them had a copy), Jazmine called Toto and tried to clarify what
they signed. Toto told her that he was serious in his promise to her and
Jazmine, while flattered was not sure that she wanted to hold Toto to his offer.
With Toto’s affirmation that even if he was drunk he was serious, is the contract
now voidable, unenforceable or void? Justify.
Later in the week, after thinking over the promise of Toto, Jazmine again called
Toto to ask him if he was really serious with the offer, and when Toto again re-
affirmed the offer, Jazmine said she was agreeing to the offer and told Toto she
too was affirming the promise to marry Toto in the event they were still single
when they reach 30. Given the above development, is the contract now
voidable, unenforceable or void? Justify.
PROBLEM SOLVING
Problem 3. (continued) – A month after they entered into their contract, Toto and
Jazmine again at the bar and talked about their situation. After several drinks,
they finally realized that maybe they were just beating around the bush and
decided to may as well become a couple. So they formalized their relationship
and was determined to marry each other even before the condition of the
contract could bind them to each other. Jojo, the ex-boyfriend of Jazmine, made
an attempt to win her back and Jazmine told Jojo that it was too late because she
and Toto are now in a relationship and promised to marry each other. Jojo
laughed at her and said their contract was unenforceable. Can Jojo have the
contract declared unenforceable? Justify.
If the contract is unenforceable, can Jojo and Jazmine still decide to marry each
other? Justify.
Buslaw 1