Introduction to Chaps 6,7,8,9 (contracts)

Question 1

There are four kinds of DEFECTIVE CONTRACTS (in order of their DEFECTIVENESS)

Answer 1

1. Rescissible contracts
2. Voidable contracts
3. Unenforceable contracts
4. Void or inexistent contracts

Question 2

RESCISSIBLE CONTRACTS

Answer 2

• VALID
• Essential requisites of a contract exist
• By reason of economic injury or damage to one of the parties or to third persons, contract may be RESCINDED

Question 3

VOIDABLE CONTRACTS

Answer 3

• ALSO VALID
• Valid UNTIL ANNULLED, until there has been a RATIFICATION
• DEFECT is CAUSED BY VICE OF CONSENT

Question 4

UNENFORCEABLE CONTRACTS

Answer 4

• CANNOT BE SUED OR ENFORCED unless they are RATIFIED
• Unenforceable contracts occupies an INTERMEDIATE GROUND BETWEEN a voidable and a void contract

Question 5

VOID or INEXISTENT CONTRACTS

Answer 5

• ABSOLUTELY NULL and VOID
• NO EFFECT at all
• CANNOT BE RATIFIED