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Contracts - Chapter 9

This document summarizes key concepts from Chapter 9 of a study guide. It defines void contracts as those that produce no legal effect due to defects, and inexistent contracts as agreements lacking essential elements. It also notes that indivisible contracts are void if any part of the consideration is illegal. Additionally, it discusses the characteristics of void contracts, rules for lawful and unlawful contracts where parties are equally or not equally at fault, and provides examples of contract problems and answers explaining the applicable rules.

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Leinard Agcaoili
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872 views2 pages

Contracts - Chapter 9

This document summarizes key concepts from Chapter 9 of a study guide. It defines void contracts as those that produce no legal effect due to defects, and inexistent contracts as agreements lacking essential elements. It also notes that indivisible contracts are void if any part of the consideration is illegal. Additionally, it discusses the characteristics of void contracts, rules for lawful and unlawful contracts where parties are equally or not equally at fault, and provides examples of contract problems and answers explaining the applicable rules.

Uploaded by

Leinard Agcaoili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 9

STUDY GUIDE

I. Definitions
Define or give the meaning of the following:
1. Void contract
- Contracts that, because of certain defects, generally produce no effect at all.
2. Inexistent contract
- It refers to agreements which lack one or some or all of the elements or do not
comply with formalities which are essential for the existence of a contract.
3. Indivisible contract
- When the consideration is entire and single, the contract is indivisible so that
if part of such consideration is illegal, the whole contract is void and
unenforceable.
II. Discussions
1. What are the characteristics of a void or inexistent contract?
- Void contracts are those which because of certain defects generally produce
no effect at all, Inexistence contracts, refers to agreements which lack one or
some or all of the elements or do not comply with formalities which are
essential for the existence of a contract.
2. Give the rule where the contract is unlawful and the act constitutes a crime, and
both parties are equality guilty.
- 1) Where both parties are in pari delicto 2) Where only one party in guilty,
that is under Article 1411.
3. Give the rules where the contract is unlawful, but the act does not constitute a
criminal offense, and only one party is guilty or both parties are not equally
guilty.
- 1) When the fault is on the part of both contracting parties 2) When only one
of the contracting parties is at fault. (Article 1412)
III. Problems
Explain or state briefly the rule or reason for your answer.
1. S (seller) and B (buyer) entered an absolutely simulated contract of sale of a
parcel of land. S brought action in court to recover the land only after 20 years. Is
it correct for the court to dismiss the action because of the long lapse of time?
- No, in Article 1410 the defense for a contract does not prescribe by the court,
better let the judicial declaration of nullity be secured to give peace of mind to
both parties.
2. In consideration of P10,000 given by X to Y, the latter agreed to burn the house of
Z. Later, X to Y to forget the agreement and to return the money, Y refused. Is X
entitled to recover from Y?
- Because of illegal transaction X can recover the money from Y. that is one of
the ways to recover the payment that is under Article 1414.
3. W (woman) agreed to say in the house of M (man) as the latter’s live-in partner
for one year in consideration of the latter’s promise to pay her P100,000 after said
period. W complied with her part of the agreement, but M reneged on his
promise. Is W entitled to recover from M?
- If W proves that M is guilty on his obligation, W can demand M to pay her
P100,000 as an agreement in a contract.

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