Chapter 13: Validity of a Contract

Question 1

NULLITY (void)- Breach of interests (hint: who can claim nullity)

Answer 1

General interests. It is absolute, meaning anyone who has interests can claim nullity.

Question 2

ANNULMENT (voidable) - Breach of interests (hint: who can claim annulment)

Answer 2

Specific interests. It is relative, so up to the specific party to seek annulment.

Question 3

NULLITY (void) - situations where it applies

Answer 3

Absence of one of elements of contract.

Question 4

ANNULMENT (voidable) - situations where it applies

Answer 4

Contracts concluded by incapacity to act, or when there is a “defect of consent” (essential and recognizable mistake, moral violence i.e. threat, or malice i.e. deception)

Question 5

Invalidity of contracts

Answer 5

If a contract is invalid it’s not binding nor legally effective (i.e. ineffective). - both void and voidable = invalid

Question 6

NULLITY - motion (hint: validation)

Answer 6

Must be found of its own motion (irrespective of plaint). Hence it cannot be validated (court must point out). However, it can produce the effects of a different contract the parties would’ve entered into not knowing of nullity.

Question 7

ANNULMENT - motion (hint: validation)

Answer 7

Cannot be found of its own motion (courts must remain impartial). Hence, it can be validated (keep contract although voidable).

Question 8

NULLITY - limitations

Answer 8

1) Usucaption

2) After 10 years of transaction

Question 9

ANNULMENT - limitations

Answer 9

Period of 5 years after entering into contract (for minors, start at age of majority).