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Week 14 Activities Voidable Contracts Learning Activity 6.3

This module discusses voidable contracts. It provides 3 key points: 1) Voidable contracts are those where consent is lacking due to incapacity, mistake, violence, intimidation, undue influence or fraud. These contracts can be annulled through a court action unless ratified. 2) The period for filing an annulment action is 4 years from when the reason for voidability ceases (e.g. intimidation ends) or is discovered (e.g. fraud revealed). 3) Ratification can be implied, such as collecting payment, or express. It requires knowledge of the voidability and intention to waive the right to annul. Guardians can ratify

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0% found this document useful (0 votes)
54 views3 pages

Week 14 Activities Voidable Contracts Learning Activity 6.3

This module discusses voidable contracts. It provides 3 key points: 1) Voidable contracts are those where consent is lacking due to incapacity, mistake, violence, intimidation, undue influence or fraud. These contracts can be annulled through a court action unless ratified. 2) The period for filing an annulment action is 4 years from when the reason for voidability ceases (e.g. intimidation ends) or is discovered (e.g. fraud revealed). 3) Ratification can be implied, such as collecting payment, or express. It requires knowledge of the voidability and intention to waive the right to annul. Guardians can ratify

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WEEK 14 ACTIVITIES

MODULE 6
VOIDABLE CONTRACTS

LEARNING ACTIVITY 6.3


Read Articles 1390-1402
Read also Chapter 7, Title II of the textbook of De Leon
Answer the following:
1. enumerate instances when contract is voidable
ANSWER:
According to the book of law, ART. 1390. The following contracts are
voidable or annullable, even though there 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. (n)

2. Give period for filing an action for annulment, in each of the instances
provided in
Art1390.
ANSWER:
The four-year period for bringing an action for annulment is reckoned:
1. In case of intimidation, violence, or undue influence, from the time
the intimidation, etc. ceases. Before that time, the consent is still being
vitiated and, therefore, the victim cannot be expected to bring an
action in court.The running of the prescriptive period cannot be
interrupted by an extrajudicial demand made by the party whose
consent was vitiated. (Miailhe vs. Court of Appeals, 354 SCRA 675
[2001].)
2. In case of mistake or fraud, from the time it is discovered. This must
be so because before the time of discovery, the innocent party is
unaware of the reason which renders the contract voidable (Art.
1393.) and cannot also be expected to bring an action in court.
Furthermore, the guilty party should not be rewarded for successfully
hiding the mistake or fraud. The time of the discovery of the alleged
mistake or fraud, must be clear from the allegations of the complaint.
(Gonzales vs. Climax Mining Ltd., 512 SCRA 148 [2007].)
3. In the case of contracts entered into by minors or other
incapacitated persons, from the time the guardianship ceases. In the
case of a minor, guardianship ceases upon reading the age of
majority.An incapacitated person has no capacity to sue.

2. enumerate the requisites for ratification of voidable contracts


ANSWER:
(1) The requisites for implied ratification are the following:

(a) There must be knowledge of the reason which renders the


contract voidable;
(b) Such reason must have ceased; and
(c) The injured party must have executed an act which necessarily
implies an intention to waive his right.

EXAMPLES:
(1) S, a minor, sold his land to B. Upon reaching the age of majority,
S, with full knowledge of his rights in the premises, instead of
repudiating the contract, disposed of the greater part of the
proceeds, or collected the unpaid balance of the purchase price
from B. In this case, there is tacit ratification by S. (see Uy Soo Lim
vs. Tan Unchuan, 38 Phil. 552 [1918].)
(2) In an action for annulment of a contract of sale, S alleged that
the sale was executed by him through the threat and intimidation
of B. It appears, however, that S deposited the check for the
purchase price and withdrew the money from time to time. The
contract is deemed ratififi ed. (see Liboro vs. Rogers, 106 Phil. 404
[1959].)

(2) The requisites for express ratification are the same as those for
implied ratification except that the former is effected expressly.

3. Who is allowed by law to effect a ratification of a voidable contract?


ANSWER:
As legal representatives of their wards, guardians have the power to
contract on their behalf. Hence, they may also ratify contracts entered
into by their wards. (2) In case the contract is voidable on the ground of
mistake, etc., ratification can be made by the party whose consent is
vitiated.

4. who, between the parties to a voidable contract, can file an action for
annulment.
ANSWER:
The consent of the guilty party is not required; otherwise,
he can conveniently disregard his contract by the simple expedient of
refusing to give his conformity. The innocent party
has the prerogative to annul or not to annul a voidable contract.

LEARNING ACTIVITY 6.4 COLLABORATIVE WORK


A sold his antique car to B who took advantage of the financial distress of A and
paid only an unconscionably low price. Later, A was able to have the contract
annulled by the court. But during the pendency of the case, the car was
completely destroyed when a fire gutted the house and garage of B through the
latter’s fault. What is the remedy of A since B can no longer physically return the
car?
ANSWER:
I do not have any answer here, sorry.

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