CONTRACTS Stages in the life of a contract: |, Preparation/Generation 2. Perfeetion/Birth 3. Consummation/Death Characteristics of Contracts: (ROMA) 1. Relativity (Ant. 1311) 2. Obligatoriness & Consensuality (Art. 1315) 3. Mutuality (Art, 1308) 4. Autonomy (Art. 1306) ‘Stipulation pour Autrui - stipulation in faver of a 3° party. Requisites: 1, The stipulation must be part, not whole of the contract: 2. the contracting parties must have clearly and deliberately conferred a favor upon a 3" person; 3. the 3° person must have communicate his acceptance; 4, neither of the contracting parties bears the legal representation of the 3° party. General Rule: Contracts (except real contracts) are perfected from the moment there is a manifestation of concurrence between the offer and the acceptance regarding the abject and the cause. Except: Acceptance by letter or telegram which does not bind the offeror except from the time it ‘came to his knowledge. Theories applied to perfection of contracts: |. Manifestation theory - the contract is perfected from the moment the acceptance is declared or made: 2. Expedition theory ~ the contract is. perfected from the moment the offeree transmits the notification of acceptance to the offerrar; 3. Reception theory = the contract is perfected from the moment that the notification of acceptance is inthe hands of the offerror; 4. Cognition theory - the contract is perfected from the mament the acceptance comes to the knowledge of the offeror. This is the theory adopted in the Philippines. Persons incapacitated to give conse’ 1. Unemancipated minors; Excor ‘= Contraets for necessaries; © Contracts by guardians or legal representatives; * Contracts where the minor is estopped to urge minority through his own misrepresentation; © Contracts of deposit with the Postal Savings Bank provided that the minor is aver 7 years: of age. 2. Insane ar demented persons unless the contract, was entered into during a lucid interval; 3. Deaf-mutes whe do nat know how to write, The following may not acquire by purchase, ‘even by public or judicial auction, in person of though the mediation of another: 1. the guardian, with respect to the property of his ward: agents, with respect to the property whose administration or sale may have been enirusted to them, unless the consent of the principal has been given; 3. executor oF administrator, the property of the estate under administration: 4. public officers and employees, with respect to the properties of the government, its political subdivisions, GOCCs, that are entrusted to them; 5. Judges, justices, prasecuting atty.’s, clerks of Caurts, etc, the property in custogia legis; and 6. any other person specially disqualified by law. Simulation of a contract Kinds of simulation: 1, Absolute - no real transaction is intended: Effect: simulated contract is inexistent. 2. Relative - the real transaction is hidden; Effect: the apparent contract is void, but the hidden contract is valid if itis lawful and has the necessary requisites, as ta third persans withaut notice - the apparent contract is valid on the principle of estoppel. Effect of: Absence of cause the contract confers: 10 right and produces no legal effect Failure efeausa | doos not rendarthe contract void Miegality ofeause | the contractis null and void the contract is vod unless the parties can show that there another cause which is true and lawful Falsity of cause (Keston does not invalidatethe contract unless: Cases when there can be no reformation: © there is fraud, 1. Simple, unconditional donations inter vivos; mistake or 2. Wills; undue influence 7 ‘when the parties 3. When the agreement is void. intended @ donation or Classes of Defective Contracts: (RUVI) sone oiner 1. Rescissible senlrast. 2. Unenforceable Form of Contracts 3. Moldable 4. Void or Inexistent Rules: 1. Contracts shall be obligatory, in whatever form they may have been entered into, provided all the’ essential requisites for their validity are present. 2, Contracts must be in a certain form when the law requires that a contract be in some form to be: = valid; © enforceable, * for the convenience of the parties. 3, The parties may compal each other to reduce the verbal agreements to writing except: + Solemn contracts such as the fallewing: a, Donations of real asiate or of mavables if exceeding Ps 6,000; b. Transfer of large cattle ¢. Stipulation to pay interest in loans d. Sale of land through an agent (authority must be in writing) e. Partnership: to which immovables are contributed {. Stipulation limiting carrier's liability to {ess than extra-ordinary diligence g. Contracts of antichresis: h. Sale of vessels Note: in such case, ithe contract is not in writing it is VOID * Real contracts that require delivery for perfection. + In contracts under the Statute of Frauds where the party sued makes a timely objection to the absence of @ written memorandum. Reformation of instruments: Requisites: 1. Meeting of the minds to the contract: 2. The true intention is not expressed in the Instrument by reason of mistake, accident, relative simulation, fraud, inequitable conduct (MARFI).COMPARATIVE TABLE OF DEFECTIVE CONTRACTS: VOID VOIDABLE RESCISSIBLE UNENFORCE- ABLE 7, delectis caused | 7. defectis caused | 1. defectis caused defect is caused by lack of by vice of consent | by injury/ damage by lack of form, essential either to one of authority, or elemants or the parties of to a capacity of both illegality 3" person parties 2. not curad by 2. cured by 2. cured by ot cured by preseription prescription prescription prescription 3. cannot be ratified | 3. canberatified | 3. need not be can be ratified ratified 4. not binding 4. binding until 4. binding unless binding unless the annulled rescinded defect is raised against ‘enforcement,RESCISSIBLE CONTRACTS Contracts which may be rescinded: |. those entered into by guardians where the ward suffers lesion of more than % of the value of the things which are objects thereof; 2. those agreed upon in representation of absentees, if the latter suffer lesion by more than 4 of the value of the things which are subject theraof 3. those undertaken in fraud of creditors when the latter cannot in any manner cl what are 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 itigants and the cour 3. allother contracts especialy declared by law to be subject to rescission; 6. payments made in a state of insolvency on account of obligations not yet enforceable; Circumstances denominated as badges of fraud: 1. consideration of the conveyance is inadequate or fictitious; 2. transfer was made by a debtor after a suit has been bagun and while it is pending against him; 3. sale upon credit by an insolvent debtor; 4, transfer of all his property by a debtor when he is financially embarrassed or insolvent; 5. transfer is made between father and son, where there are present some ar any of the above circumstances; 6. failure of the vendee to take exclusive possession of the property; Distinctions: RESCISSION RESOLUTION (Art. 1191) 1. Action by the Action only by contracting ‘the injured party: parties oven by a 3° party 2. based on none 2, based on ‘fulfilment of the lesionifraud of ‘obligation creditors; 3. courts may grant 3. courts cannot periods, ‘rant periods for compliance MOIDABLE CONTRACTS. Causes of extinction of action to annul: |. Preserition + the action must be commenced within 4 years from: © the time the incapacity ends; * the time the violence, intimidation or undue influence ends; © the time the mistake or frat discovered, 2. Ratification © Requisies: ‘a. there must be knowledge of the reason which renders the contract voidable b. such reason must have ceased;the injured party must have executed an act which expressly or impliedly conveys an intention to waive his right. 3. By /oss of the thing which is the object of the contract through fraud or fault of the person wha is entitled to annul the contract. UNENFORCEABLE CONTRACTS Kinds of unenforceable contracts: 1, those entered into in the name of anather by one withoul or acting in excess of authority 2. those where bath parties are incapable of giving consent; 3. those which do not comply with the Statute of Frauds. ‘Aargemments within the: soopeiaf the Statute of Fraud: ‘Agreements not to be performed within one year from the making thereof; 2, Plomive fo anowor forthe cab cofaltar miscarriage of another; ‘Agreement in consideration of marriage other than a mutual promise to marry; ‘Agreamant for the sale of goods, ete. at a priee not less than Ps500.00 Contracts of lease far a period fonger than one year, ‘Agreements for the sale of real property or interest therein; Representation as to the credit af a 3° person. Noone Modes of Ratification: 1, For contracts infringing the Statute ef Frauds: + expressty ‘+ impliedly - by failure to object to the presentation of aral evidence to prove the contract, or by the acceptance of benefits under the contract. 2. If both parties are incapacitated, ratification by their parents or guardians. shall validate the contract retroactively, ‘VOID OR INEXISTENT CONTRACTS: The following contracts are void: 1, Those whose cause, object or purpose is contrary to law, morals good customs, public order or public policy; 2, Those whose object is outside the commerce of men; 3, Those which contemplate an impossible service; 4, Those where the intention of the parties relative to the principal object of the contract cannot be ascertained; 5. Those expressly prohibited or declared void by law, ‘Tho following contracts aro inaxistent: 1. Thase which are absolutely simulated or fictitious; 2. Those whose cause or object did not exist at the time of the transaction.Art 1305 ELEMENTS OF A CONTRACT 3. Essential Clements 1.Consent, 2.Subject Matar ‘.Cause or Consideration b, Natural Elements- presumed to exist, unless the contrary is stipulated Ex. Warrants against eviction andi against hidden defects (©. Accidental Elements ~ exstence of such is dependent on ine agreement of the parties, (Classification of Contracts. ‘2. According o perfection or formation 1. Consensual 2. Real-pertected by detvery 3. Formal or Solemn 1b. According to cause of equivalence ofthe value of prestations: 1, Onerous. 2, Gratuilous or Lucrative 3. Remunerative Renin in tmponne a Sependnen fone pen aor Principal can stand alone 2 “Accessory ~ depends upan the existence of srother contract 3. Preparatory — hare, the partes do not consi the contact aS an énd by Asal, but as a means thru which future ‘eansacon or contracts may be made Ex. Agency, partnership4. According to the parties obligated 4, Unilateral 2 Bilateral ‘& Acconting to ther Name or Designation 4. Nominate 2. Innerinate 4 Aconsing tothe risk of futiment 1. Commiative 2. Aienatory (9. According tothe time of performance or ufiment 4, Executed-one completed at the tine the contact fs ertered ints 2. Executory ~ one where the prestaions are fo be complied with some future time ‘h. Acconing to subject mater 1. Contracts involving things 2. Coniracs involving righ or credit 3. Contracts involving services {According to obligations imposed and required by law 1 2. _Instutionalike contract of mariage |. According to the evidence requited for its proof 1, Those requiring merely oral or parol evidence 2. Those requiring written oot k. According fo thé number of persans actually and physically entering inta the contracts 4. Ordinary = two partes are represented by different persons 2, Auto Contracts ~where only ane person represents Wwe opposite partes, but in diferent capaciies |, Asconsing ta he number of persans who parteipetedin the drafting ofthe correct 4. Ordinary 2. Contract of Adherence m. esa he tet of the contract: 2 pena STAGES OF ACONTRACT ‘2. Preparation b. Pedecton © Consummation or dath or termination) ine Fee emia ais Freedom o stipulate Obligatory force and compance in good faith Perfection by mere consent Both partes are mutually bound Reitity pance ‘Ar1 1308 ~ Freedom or autonomy of canract Ant 1307 ‘Four Kinds of Innaminate Contracts ‘a. Du ut des (| give that you may give)‘bo ut facts (I give that you may/do) ‘&Faci ul des (Ido that you may give) ‘6. Facio ut facia (i that you may'do) Ant 1208-1910. MMUTUALITY OF CONTRACTS ‘© The valcity or fufilment ofa contract cannot be fet to the wil of one ofthe contacting parties, +The valty or futflment may be lef tothe wil ofa third person, ©The vality or fultlment may be lef to chance. art 13tt ie principe tosses iho Penile of Rea. Contracts are generally effective only between the parties, their assigns and their heirs. Exceptions: '. Where the obligation arising from the contract are not ransmissibleby their nature, by stipulation, or by provision cf law, b, Where theres stipulation pour atu (a stipulation in favor ofa third party) ‘&_ Where 3 third person induces another to violate his contract ‘Where, in some cases, turd parcons may be adversely affected by a contract where hey dd not participate, ‘6. Where the law authorizes the crediorto sue on a contract entered into by his debior. aniai2 ‘Areal ght binds the propery aver whichis exercised, Exception tothe general rue that a contrac binds only the parties, ants Right of defrauded creditor An t3id ‘Reguisites before a thin person inthis aticle can be held fr damages: ‘a. Existence of 8 vali contract 1b. Knowledge on the part ofthe third person of the existence ofthe contract ‘c._Imtererence by the thie person without legal justification of excusa At 1315-1316 Perfection of contracts Anti? ‘Requisites fora Person to Contract in the Name of Another ‘a. He must be duty authorized (expressly or impliedly) 'b. Ore must have by law aright to represent him Othe contact must be subsequently ratified Ant318 Requistes of Contracts a. Consent (Art 1919-46) b. Object (rt 1347-1349) © Cause (Art 1950458)A139 Detiniton of Consent Ast 1318, paragraph Regus of Consent ‘There must bt or ore paris ‘Th parties must be capable oF incapacitated There mustbe na vilaton of consent ‘Thare must be no conflict between what was exnressty declared and what was really intended ‘The iment mus! be declared property Rees rhe meng of rind {An offer that must be certain And an occeptance ual be unquaied ond abechta Concurrence of offer and acceptance (Art 1319-26) Legal capacty of contracting parties (Art 1327-20) CCharacteristios of Consent (rt 1330-46) cance Ant 1320 Forms af Acceptance ant t322 ‘Acceptance of an Offer made thru an agent ARS Other instances when the offer becomes ineffective ‘When te otfree expressly or impliedly rejects the offer When the offers accepted with qualification oc condtion |When before acceptance is communicated, the subject matter becomes ileal or impossible ‘When the period of time geen tothe offeree witun which he must signy his acceplance has already lapsed ‘When the otters rejaced in due tome cance Art 1324 Option Contact ‘Option: itis a contact granting 2 person the privilege to buy oF not to buy certain objects at anytime within the agreed period at a fixed pice Perfection of Option When there is a meeting of rindsion the option ‘Ark 132561526 he advertisement contains al the specific particular needed in a contract, tis a dofteoffer, Wimporiant detas are left cu, the adverisement isnot a definite offer, but a mere inal fa make an afer, ‘Aft 1327 In relation to Art 1329 \Who cannot give consent An 1828 Voidatie contracts by reasen of incapacity An ts30 ‘This article enumerates causes or vices of consent, ‘Art 1331 in relation to Art 1993 Mistake a fae belief about something,Requisits for mistake to viale consent a. Object ofthe contract |b, The-condiion which princpally proved or induced one ofthe parties ‘© ently or ualifcaions, but only if Such was the principal cause ofthe contrac. 4. The error must be exmusable 6. Theerror must be a misiake o foct Kinds of Mistake ‘2. Mistake 29 tothe object 1. stoke asthe ident ofthe thing 2. Mista as 0 the substance ‘of he thing 3. Mistake as 10 the conditons ofthe tring 4. Mistake as io the quantty ct the thing (B. Mistake as to person 1. ‘Mistake musi be citer with regards othe ortiy ox wih raga othe qualification of ane ofthe contracting patos 2. Suchidenty or qualiicaton must have bee the rnp consideration forthe celebration ofthe contract ant 1332 Burden of proof in case of mistake at 1339 Effect of rnowledge of isk Art 1334 Mistoho of Law 5 tat which arses rom an ignorance of some provision of aw, a fom an eroneous interpretation of is meaning, oF frm an ‘rvonaous conclusion 28 tothe egal fect of the agreement, on the part of one of the parties. Requstes: ‘2. Theremmust be mutual ror 'b, Theor must ofr to the logal eect af tne agrosment ¢ _Thereal purpose of the paresis trusted ‘Art 1335-1336, Violation rte ta physica coercion Intimidation réfers to mara coercion Roquisites for violence to vllate consent 2. Employment of serious or irresistible force 'b, Thmust have been the reason why the contact was entered into: Requiites for intimidation to vitate consent Reasonable and well-grounded fear Of an imminent and grave evt Upee his persan, propety. of upon the peron of propery of his spouse, descendents or asoendats Iamust have been the reason why he contract was entered into ‘Tho threat must be an unjust ae, an actionable wrong cance An 13T ‘Requisies for undue influence to vitite consent ‘2. Improper advantage b. Powerover te will ofanoiher ©. Deprivation ofthe fatar’s wil ofa reasonable freedom of choice art 1338-1541 Kinds of Fraud ‘a. Fraud inthe celebration ofthe contract 1, Dolo Causanto or causal fraud (art 1338) 2. Dol Incidente of incidental fraud1b. Fraud in the performance of the abligabons stipulaed inthe contract Requisite of Dolo Cavsante ‘a. The fraud must be material and serius 'b, Tha fraud must have been employed by one of the contracting parties, because if both commited fraud, the contract would remain vali Tham must be a liberate intent to deceive ta induce , The other partly must have relied on the unirue statement, and must himself not be gully of negigence in ascertaining the truth rt 1242-1344 ‘Speaks about misrepresentation Art 1345-1346 ‘Simulation ‘Simulation of a Contract defined is the process of ntentonaly deceiving others by producing the appearance cf a contract that realy does not exist (absolute simulation) COcwhichi citferent from the tue agreement relative simulation. Kinds. 2, Absolute; Effect: the contracts void b. Relative: Efec; the paties are bound to the real or rue agreement except- ‘2, I'tho contract should prjudioe thie! persons 'b. Grifthe purpose is contrary to lan, morals, public order, pobcy or good customs Requisite 2. An outward! declaration af wil dference from the wil of the partios bo, The false appearance must have been intended by mulual agieerent c. The purpose isto decaive third persons ‘Art 1347-1348, ‘Onjects (Subjact Matier of 2 contract + Athing ora service Reauistes ‘a. The thing r sonice must be wai the commerce of man bb, Nustbe ransmissible Must not be contrary io law, moras, good customs, aublic oder. or public policy 1. Must note impossible €&. Must be delerminaie 2s tots kind or determinate without the need of new conract or agreement CAUSE OF CONTRACTS Art 1350 “Cause’ defined -1US the essential and impoling reason why a party assumes an obsgason ant35t ‘Move —is the purely personal or private reason which a party has in enteting ina a correct Motive vs. Cause Mave Nay voryaltiough he enters ino the same kind of contract May be unknown to the oher ‘The presence of motive Aways the came ‘Aways kon Cannot cure the sbsonce of cause orel ore(Art 1382-1355, Requisites for cause a. Namust be present be Nims be te cc Himust be lawl CHAPTER 3 FORM OF CONTRACTS: An 1356 ‘Meaning of form of contracts -Retlers tothe manner in which a contracts executed ar manifested Riles regarding fom of contacts (At 1356) ‘Art 135741358 nce ropa emai fra fey ot cae ‘rt 1357 and Art 1358 do not requite the execution of a contact either in a public or private instrument in order to valitate ‘enforce it but only o ensure its efficacy, so after ts existence has been admitted, the party bound may be compels! to exacute the necessary document b. Even where the contract has not been reduced 10 the required form, i is stif valid and binding as far as the parties are concerned From the moment one ofthe contracting paras invokes the provisions of An 1357 and 1388hy moans of 2 proper action, the effec iso place the existence of the contrac in issue, which mus be resolved by the orinary rues a evidence 6. Ar 1357 does not requie thatthe acon to compel the execution of the necessary document must precede Ine acbon upon the contract @. However, athough the provisions of Art 1357 in connection with those of Art 1358, do not operate against the validity ofthe contract nor the validity ofthe acts voluntaniy performed by the parties forthe fffllment thereof, yet from the moments when any ofthe contracting parties invokes said provisions, iis evident thal under them the execution ofthe required document must precede the determination ofthe cthercbigatons derived fom the contact CHAPTER 4 REFORMATION OF INSTRUMENT Reformation is thal remedy by means of which a witten insturentis amended or rectified so as to express or confor tothe real ‘agreement of inlention ofthe partes when by reason of mistake, raud, or inequitable contact, or accident the instrument fails to express such agreement ar intention. Requistes for reformation ‘a. There is a meeting of minds of the partes to the contract . The writen instrument doas not express the true agreement or intention of the parties The fallre to express the tr intentions is due to mistake, fraud, inequitable conductor accident d. The facts upon which relief by way of reformation of the instrument is sought are putin issue by the pleadings There's clear and convincing evidence of the mistake, fraud, inequitable conduc, or secident Reformation vs, Annulment In eormation, here has been a meeting ofthe minds ofthe parties, ence, a contact exis while in anelment, here has been ‘none, the consent of one ofthe pares beng vite by mistake, et. At 1360-69 Ant 1360 Rule in case of confict Ar 1368 Instances when reformation is no alowedCHAPTER 5 INTERPRETATION OF A CONTRACT At 1370 Definition of interpretation of contract -Isthe determination of the meaning ofthe termes or words used by the partes in thelr contract. ‘Art 1374-79 (provisions) Kinds of defective contracts a. Rescissible (Art 1380-89) 1 Voidatio At 1380-1402) ¢. —Unenforceable (Art 1403-1408) Void oF nexitent (vt 140964 ‘Art 1364 in relation to Art 1362 ‘Meaning of rescissble contracts Those vabily agreed upon because all the essential elements exists but in some cases established by law, the remedy of rescission is granted in the interest of equity Rogusites of rescission The contacts must be vay agreed upon ‘There must be lesion or pecuniary prejudice to one of the partes orto third person ‘Toa rescission mustbe based upon a case especialy provided by law ‘There must be na other legal remedy to obtain reparation of he damages ‘The paty asking for rescission must be abe oretum what hes. cbigad to restore by reason ofthe contract The object othe contract must not legally ‘The object ofthe contract must not legally btn the possession of third persons who did not act in bad faith The period fring the action of rescission must have not prescribed ‘Meaning of Rescission +Remesy granted by law to the contracting parties and sometimes even to thi persons in order to secure reparation at damages caused by them by a valid contract, by means of the restoration af things to their condition in which they were prior to the ‘celebration ofthe said contract. poe At 1385 Effects of rescission art 1324 Prescription VOIDABLE CONTRACTS Definition -ve those which possess all the essential requisites of a valid enntraet but one of the parties is incapable of ging consent, oF ‘consent is vated by mistake, violence, intimidation, undue influence, o fraud (Characteristics a. Their defect consist in the vation of consent of one ofthe contracting parties , Thayare binding unl they are annulled by competent cour c_Thayare suscepti of convaliéation by raifcaion or by prescription Voldabe vs. Rescssible Contracts VoidableDetects intrinsic Contracts voidable even f thee is no damage or prejudice Annudabity of the contact is based on kaw Susceplible of ratification ‘The causes of annulment ‘The causes of rescission Rescissibie Detects extinsic Contracts not rescisible i there is no damage or prejudice Rescissibilty of the contracts based on equty Not susceptible of ratfication 8. Aredifferent form aoge Art 1390 Voidable contracts at 1391 Preserigtion At 1392-96 Concept of Ratification +BY Virtue of which efficacy s given toa cantract which suffers rom a vice of curable nulity Requisites for ratification a, The contract should be tainted with a wie which is susceptible of being curad b. The-confirmation should be effected by the person who is entitled to do so under the law © Hshouid be effected with knowledge ofthe vce or defect of th contract d. The cause of the nullity or defect should have already disappeared ‘Art 1397 in relation to Art 1391 Who and when may an action for annulment of contract be instituted ‘Art 1398-99) Effects of annulment ‘Art 1400-02 + Effect pf falure to make restitution Where loss is due to faut of plainnit Where loss is due to faut of defendant -Where loss is due to fortuitous event CHAPTER 8 UNENFORCEABLE CONTRACTS ‘Meaning of unenforceable contracts Those that san not be enforced in cour or sued upon by reason of defects provided bylaw unl and unless they are ratified according to law. Kinds: 8. Those entered inten the name of another by one witout or acting in excess of authority Those tha dant comsly withthe statute of fraud ‘c Those where both parties are incapacitated of gving consent Unauthorized contractsThose entered ino in the name of another person by ane who has been given no authoty or legal representation or wha has ‘acted beyund his powers ‘Characteristics of Unenforoeable Contracts ‘a. They can not be enfotced by a prope action in Gout b. They.are susceptivie of retficaton ¢. They.can not be assailed by tid persons ‘adeeb, Rede ‘Arvunenforceable contract cannot be enforced by a proper action in court, whe & rescssibe eantact-can be enforced, uniess it is rescinded 1. The causes for the unentoroeabie character ofthe former ae diferent from the causes ro the rescissitie character of the later ©. The formers susceptible of ralifcation, white the lata is ack 1d. The foriner cannot be assaiied by thd persons, while the Inter maybe assailed by third persons who are prejudiced Unesforceable vs, Voidable ‘An unenloroeale erivact camat be enforce by a proper action in court, wea voldable contact ean bo enforad, unless its annulled ‘b. The causes forthe unenirceable character ofthe former are dfiorent rom he causes fx the voidable characte of he later ‘STATUTE OF FRAUDS ‘Purpose Nel only to prevent fraud but also to guard agains the mistakes of hones! men by requiing thst certain agreement specified must be in weitng, ‘Application ‘2. Natapplcable in actions which are neler for damages bacsuse of & lation of a eantiset, nor forthe speciic petornanoe thereof ‘Applicable only ta executor contacts and not lo contacts which are ltaly a pataly performed ol applcatle where the coniracisadeiiedy eniressy or knphily by the Fadi fo deny special ts enstenat, no further evidence thereot being require in suck cass, ‘Applicable only t the agreements enumerated therein Not applicable where a wring does not express the rye agreement of the parties does not deetar the contracts infringing ara void but merely unenforceable The delense ofthe slatute cl ras may be waived ‘The defense of the statute ct rauds is parsonal to the parties and canna ba enfocod by strangors 16 the contrat Effect of Non-Compliance The conlrecl ar agiteniat is unetforaesble by éotién Ratification of Unentorceatie Coniraets Ether by: a. the fore of object to the presentation of ora existence to prove the same: c. The aceoptance of benalits under them ‘Art 14-4408 (provisions) os CHAPTER 9 VOIO OR INEXISTENT CONTRACTS ‘Wold Contracts -Those, which of certain defects generally preduce no elfect a al Inexistent Contracts: -Relerto agreements which lack one or some oral the elements or do.no comply wih the formalities which are essential forthe -exstence of a contract (Characteristics of Veid or rent Contracts ‘Genera, produces no electNeannot be rated ‘The ight fo set up the defense of egalty cannot be waived ‘The adton or defense for the declaration ofits inexistence does not prescribe ‘Tha defense of legality is not avalable to thd persons whose interests are not diac affected Weannot give rise toa valid contract ee ant 14i0 -Improseriptbity of voit or mexitont contract antattta12 ‘Where both parties are in pari deltto ‘2. The panies shall have no.acton against each other , Both shallbe prosecited € Thethings othe price ofthe contract, asthe ofects of te crime shal be confiscated in favor f the government ‘Where only one party is guilty The ule in paragragh) 1 of at 1411 applies only to the qulty party er the mom guilty party Exceptions to the principle of pari delito An 1413-1419