APPLICATION HOW RATIFIED EFFECTS PRESCRIPTION PARTY TO FILE Other rules

1. Contract entered into by the Not subject to GR: The parties must return to 4 years and all other 1. Only up to the
guardian and the ward suffers lesion ratification each other the objects of the remedies are exhausted extent needed to
by more than the value of the things contract and any fruits/ counted from cover damages
which are the object there of interest, if it cannot be
restored than damages maybe Guardianship: 2. If the basis is lesion
2. Contract entered into by the claimed from the one Incapacity ceases of the ward or
Rescissible representative of the absentee and he responsible for the loss, absentee, there is no
suffers lesion by more than the Absentee: rescission if the court
value of the things which are the object possessors in bad faith are Knowledge of the approved the
there of liable also for damages if they contract contract
cannot return the thing due to
3. Contracts undertaken in fraud of any cause Fraud Creditors: 3. Actions to
creditors when the latter cannot Discovery of fraud rescinded are
collect the claim due to them No Rescission If subsidiary and must
Presumptions of fraud 1. If the object of the contract Things under litigation: be made in a separate
a) Alienations by gratuitous title is in the possession of a 3rd Knowledge of the civil action after all
where donor did not reserve person in good faith contract other remedies have
property to pay debts made been exhausted
before donation 2. The person demanding
b) Alienations by onerous title rescission cannot return what
when made by person he is obliged to restore
against whom judgment is
rendered or writ of
attachment issued

4. Contracts concerning things under

litigation entered into by the
defendant without knowledge and
approval of the litigants or court

5. All other contracts declared by law

to be rescissible

Art 1382. Payments made while

insolvent of debts that are not yet due
maybe rescinded
1. One of the parties is incapable of
Voidable giving consent
2. Consent is vitiated by mistake,
1. Express ratification GR: The contracting parties 4 years which is counted Those subsidiarity or
must restore to each other the from principally obliged
2. Tacit ratification objects of the annulled
violence, undue influence or fraud a. the person knew the contract with their fruits,
defect but acts in a way price or interest. If it is a
to imply that he waives service, the value thereof is
his right to annul the the basis for damages. If it
contract cannot be restored than the
value of the thing at the time
Ratification extinguishes of loss with interest and fruits
actions to annul a shall be given.
contract E: Law provides otherwise
GR: Ratification can only E: The defect is based on the
be made by incapacity of one of the
1. the guardian of the parties, he is only obliged to
incapacitated person return up to the extent he was
benefited
1. Time when E: 3rd person who can
Intimidation, violence, show they will be
undue influence stops prejudiced and suffer
detriment from the
2. Mistake or fraud is contract
discovered
E: Those responsible for
3. When guardianship the violence, fraud,
ceases mistake or undue
influence or
intimidation have no
right to annul

Extinguishment of action
GR: If The object is lost
through the fault or fraud of
the person with the right to
Annul, the action for
annulment is extinguished

E: Loss of the object by the

incapacitated party is not an
obstacle to success of the
action

E2E: Loss was due to fault or

fraud of plaintiff (Active
misrepresentation of age)

1. Entered into in the name of another 1. Failure to object to Unenforceable contracts If a contract is
by one with no authority or legal the entry of oral cannot be assailed by 3rd complies with the
representation or acted beyond his evidence (This is for person statue of frauds pub a
powers those that dont comply public document is
2. Failure to comply with the statue of with the statue of needed for
frauds frauds) registration in the
 a) Agreement that by its terms registration of deed
is not to be performed within 2. When a benefit has the parties can
a year from making thereof been obtained from the reduce it into the
Unenforceable OR can only be accomplished contract form needed and
within a year thereof enforce the contract
b) Special promise to pay for the 3. Ratification by the at the same time
debt or miscarriage of guardian of one of the
another parties makes it
a. Must be a collateral VOIDABLE ratification
promise that is, he by both cures the defect
is not a principal entirely.
debtor
b. Solidary obligations
fall under the statue
if the other debtors
were
accommodating
debtors (just
allowed to be
solidary debtors so
the other guy could
contract the loan)
c) Agreement made in
consideration of marriage
other than mutual promise to
marry
d) Sale of goods, Chattels or
things in action
a. Recording in sales
book in auction
sales counts as a
note or memo
e) Agreement for the lease of
more than a year or sale of
real property or interest
there in
f) Representation as to the
credit of another
3. Both parties are incapable of giving
consent