Briefly explain whether the following contracts are valid, rescissible, unenforceable, or void:
(a) A contract of sale between Lana and Andy wherein 16-year old Lana agreed to sell her grand piano for ₱5,000.-00. (2%)
(b) A contract of lease of the Philippine Sea entered by and between Mitoy and Elsa. (2%)
(c) A barter of toys executed by 12-year old Clarence and 10-year old Czar (2%)
(d) A sale entered by Barri and Garri, both minors, which their parents later ratified. (2%)
(e) Jenny’s sale of her car to Celestine in order to evade attachment by Jenny’s creditors. (2%)
Suggested answer only. Not an official answer and not legal advice.
(a) Voidable; (b) Void; (c) Unenforceable; (d) Valid; and (e) Rescissible. Under Article 1390(1) of the Civil Code, a contract is voidable if one party is a minor. Under Article 1409(4), contracts whose object is outside the commerce of men are void.
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Quick check
Under Article 1390(1) of the Civil Code, what is the legal status of a contract where one of the contracting parties is a minor?
Under Article 1390(1), a contract entered into by a minor is voidable.
Under Article 1409(4) of the Civil Code, what is the legal effect of a contract leasing a public body of water like the Philippine Sea?
Contracts whose object is outside the commerce of men, like public waters, are void ab initio.
Under Article 1403(3) of the Civil Code, what is the legal status of a contract where BOTH contracting parties are minors?
Contracts where both parties are incapable of giving consent are unenforceable under Article 1403(3).
Under Article 1407 of the Civil Code, what occurs when the parents of BOTH minor contracting parties ratify an unenforceable contract?
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Under Article 1381(3) of the Civil Code, why is a sale of property made by a debtor to evade attachment by creditors rescissible?
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Learn more about these topics
1. Defective Contracts Categories
Under the Civil Code, defective contracts are categorized into rescissible, unenforceable, voidable, and void contracts. Voidable contracts possess all essential requisites but are defective due to incapacity or vitiated consent. Unenforceable contracts cannot be enforced in court due to lack of authority, statutory writing requirements, or mutual incapacity of both contracting parties. Void contracts produce no legal effect whatsoever because their object or cause is illegal, impossible, or outside the commerce of men.
2. Minor Contracts Ratification
Under Article 1403(3) of the Civil Code, contracts where both contracting parties are incapable of giving consent, such as minors, are unenforceable. However, under Article 1407, if the parent or guardian of one of the incapacitated parties ratifies the contract, it becomes voidable at the instance of the other party. If the parents or guardians of both contracting parties ratify the contract, it becomes valid and fully effective from its inception, curing the original defect of mutual incapacity.
3. Fraudulent Conveyance Rescission
Under Article 1381(3) of the Civil Code, contracts undertaken in fraud of creditors are rescissible when the creditors cannot in any other manner collect the claims due them. Rescission is a subsidiary remedy designed to repair financial injury caused to third parties. A contract of sale executed by a debtor specifically to evade attachment or execution by existing creditors constitutes a fraudulent conveyance, rendering the alienation subject to judicial rescission at the instance of the defrauded creditor.