VOIDABLE CONTRACT ART. 1390-1402 (Art.
1396-1402)
VOIDABLE
CONTRACT
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ARTICLE 1390-1402
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Article 1396. Ratification cleanses the contract from all its defect from
the moment it was constituted.
Effect of ratification retroactive.
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Ratification retroactive cleanses the contract of all its defect from
the moment it was constituted. It extinguishes the rights of action to
annul. (Art. 1392). The effect of ratification is to make the contract
valid from its inception subject to the prior rights of third persons.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Example:
B forced S to sell the latter’s horse. Later, the horse gave birth to a
colt. If S should ratify the contract after the birth of the colt, who is
entitled to the colt? B, because ratification
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has retroactive effect. It
validates the contract from the date of its execution.
If the horse had been sold by B to C who acted in good faith, the
subsequent ratification by S of the sale to B cannot prejudice C.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Article 1397. The action for the annulment of contracts may be
instituted by all who are thereby obliged principally or subsidiarily.
However, persons who are capable h
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.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
PARTY ENTITLED TO BRING AN ACTION TO ANNUL
Two different requisites are required to confer the necessary capacity to
bring an action for annulment of a contract,
h to wit:
(1) The plaintiff must have an interest in the contract; and
(2) The victim and not the guilty party or the party responsible for the
defect is the person who must assert the same
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
RIGHT OF STRANGERS TO BRING ACTION
One who is not a party to a contract or an assignee thereunder, or
does not represent those took part therein, has, under Art 1397 (and
Art. 1311), no legal capacity to bring challenge the validity of such
contract. h
Stranger, therefore, are without right or personality to bring the
action for they are not obliged by contract, principally or subsidiarily,
unless they can show detriment which would positively result to them
from the contract in which they had no intervention or participation.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
EXAMPLE:
S sold a parcel of land to B. The consent of S was vitiated by fraud.
Subsequently, S sold the same lot to C.
In this case, C can bring an action to annul the sale.
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S sold a piece of urban land to B. On grounds provided by law, S or B
can bring an action to annul the contract. But C, an adjoining owner of S,
cannot ask for the annulment of the sale as C is not obliged principally
nor subsidiary under the contract.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Guilty party without right to bring action
The guilty party, including his successor
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in interest, cannot ask for
annulment. This rule is sustained by the principle that who comes to
court must come with clean hands.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Article 1398. An obligation having been annulled, the contracting
parties shall restore to each other the things which have been the
subject matter of the contract, withh their fruits, and the price with its
interest, except in cases provided by law. In obligations to render
service, the value thereof shall be the basis for damages.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Mutual Restitution upon annulment
If the contract is annulled, the parties, as a general rule, must restore to
each other the (a) subject matter of the contract with its fruits and (b)
the price thereof with legal interest. h
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
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 has been benefited by the thing or
price received by him.
Restitution by an incapacitated person.h
The incapacitated person is obliged to make restitution only to the
extend that he was benefited by the thing or price received by him. It
results, therefore, that if he is not benefited, he is not obliged to restore
what he had received but the other contracting party is still bound to
return what he had received, whether he was benefited or not.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Article 1400. Whenever the person obliged by the decree of annulment
to return the thing cannot do so because
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it has been lost through his
fault, he shall return the fruits received and the value of the thing at
the same time of the loss, with interest from the same date.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Effect of loss of the thing to be returned.
1. If the thing to be returned is lost without the fault of the person
obliged to make restitution(defendant), there is no more obligation to
return such thing. But in such a case, the other cannot be compelled
to restore what in virtue of the decree of annulment he is bound to
return. h
2. If it is loss through his fault, his obligation is not extinguished but it is
converted into an indemnity for damages consisting the value of the
thing at the time of the loss with interest from the same date and the
fruits received from the time the thing was given to him to the time
of its loss.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Example:
X by force and threat, was able to purchase the apartment house of Y.
Later, Y brought an action to annul the contract which action was
granted by the court. X was ordered by the court return to Y the
apartment house but X cannot do so because the apartment house had
been destroyed by fire through hish fault . In this case, therefore, X has
the following obligation:
1- To give Y the fruits or rentals of the apartment house, if any, from the
time the house was delivered to him;
2- To give to Y the value of the apartment house at the time of the loss
plus interest on the value of the house.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
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 a right to institute the
proceedings.
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If the right of 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
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Extinguishment of action for annulment
1. If the person who has right to institute an action for annulment(Art.
1397), will not be able to restore the thing which may be obliged to
return in case the contract is annulled because such thing is lost
through his fraud or fault, his right
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extinguished. If the loss is not due to his fraud or fault art 1402
applied.
The action for annulment shall be extinguished only if the loss is
through the fault or fraud of the plaintiff.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Example:
C was forced by B to enter into a contract
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of barter whereby B exchanges
his fountain pen with C’s ring. If the fountain pen is lost due to the fault
of C. C’s right of the annulment is extinguished.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
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.
Effect where a party cannot restore hwhat he is bound to return
When a contract is annulled, a reciprocal obligation of restitution is
created. The return by one party of what he is obliged to restore by the
decree of annulment may be regarded as condition to the fulfillment by
the other of what is incumbent upon him.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Example:
B forced S to sell the latter’s horse. The contract was annulled by the
court at the instance of S.
If the horse died through the faulth of B, article 1400 governs. If the
horse died due to a fortuitous event, S refuse to return the purchase of
price. With or without the fault of B, S, as injured party, has the right to
demand the value of the horse with damages.
By: Joseph Vega
VOIDABLE CONTRACT ART. 1390-1402 (Art. 1396-1402)
Thank you
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For listening
By: Joseph Vega
