1
Q
Challenge period must be challenged within a
specific period
A
Voidable
2
Q
Inexistent from the very beginning therefore may not be enforced
A
Void or Inexistent
3
Q
arises from mutual agreement and intent to comply, even though it is
not explicitly expressed in words. T
A
Implied
4
Q
In the Chapter 9 of Article 1409, the following contracts are inexistent and void from the
beginning (void ab initio)
A
- Those whose cause, object or purpose is contrary to law, morals, good customs, public
order or public policy; - Those which are absolutely simulated or fictitious;
- Those whose cause or object did not exist at the time of the transaction;
- Those whose object is outside the commerce of men;
- Those which contemplate an impossible service;
- Those where the intention of the parties relative to the principal object of the contract
cannot be ascertained; - Those expressly prohibited or declared void by law.
5
Q
These contracts are those in which some future act or obligation remains to be performed
according to its terms
A
Executory Contract
6
Q
One of the parties is incapable of giving consent
A
Voidable/Annullable
7
Q
Terms are inferred from actions of contracting parties
A
Implied
8
Q
Example Contract signed under fraud or
duress
A
Voidable
9
Q
Ex: contrary to law
A
Void or Inexistent
10
Q
Legal excuses in refusing, neglecting or failure to perform a contract
A
Force Majeure (Acts of God)
Impossibility of Performance
Breach by the Other Party
Duress or Undue Influence
Fraud or Misrepresentation
Mutual Agreement to Rescind
Statute of Limitations
11
Q
Performance may be excused when unforeseeable events beyond a party’s control, such
as natural disasters, war, pandemics, or government actions, occur and the contract
includes a force majeure clause.
A
Force Majeure (Acts of God)
12
Q
It is a mutual agreement, the effects of which are triggered by the occurrence of an uncertain
event. In this type of contract, one or both parties assume risk.
A
Aleatory Contracts
13
Q
Cause of defect defect in consent or capacity
A
Voidable
14
Q
when the defect of a void contract consists in the illegality
of the cause or object of the contract, and both parties are at fault, the law refuses them every
remedy and leaves them where they are)
A
pari delicto
15
Q
Types of illegal Contracts
A
Statutory Illegality:
Common Law Illegality:
Contracts with Illegal Objectives
Contracts Performed Illegally
Agreements Restraining Trade
Contracts Affecting Marital Status
16
Q
ex. Any
agreement involving the provision of unlicensed medical services or engaging in fraudulent
billing practices within healthcare settings
A
Illegal
17
Q
Contracts that are drafted by the party who has the greater bargaining advantage, providing
the weaker party with only the opportunity to adhere (i.e., to accept) the contract or to reject it
A
Adhesion Contracts
18
Q
Slight Delay
A
Mora Solvendi)
19
Q
- Verbal/ written terms are specified/ given at the time the contract is made
A
Expressed
20
Q
A party may refuse to perform when they were forced or unduly pressured into entering
the contract.
A
Duress or Undue Influence
21
Q
Performance may no longer be enforceable when the time period to act on the contract
has expired under applicable laws.
A
22
Q
Expressly prohibited by law like obtained through fraud, undue influence or duress.
A
Illegal
23
Q
The aggrieved party may cancel the contract. In cases of unreasonable delays
or inability to perform, the customer could terminate the agreement and possibly request a
refund
A
Rescission
24
Q
When a nurse provides care to a patient, there is an implied contract that the patient will
pay for those services upon completion
A
Implied
25
Agreements
that promote immoral conduct or public corruption (e.g., contracts for sexual services).
Common Law Illegality
26
it means can be challenged anytime
imprescriptible
27
No further performance is required when both parties agree to terminate the contract.
Mutual Agreement to Rescind
28
According to ______, a contract is not
valid unless the following requisites are present:
Chapter 2, Article 1318 of the Civil Code of the Philippines
29
Example Agreement for illegal
activities, lack of consent
Inexistent
30
These contracts are deemed illegal based on general legal principles or public policy
Common Law Illegality
31
Consequences of Illegal Contracts
1. Void and Unenforceable
2. No Recovery of Damages
3. Severability
32
These contracts are expressly prohibited by law.
Statutory Illegality:
33
It involves a promise that is made by only one party (
Unilateral Contracts
34
Legal effect no rights or obligations are
created
Inexistent
35
These are contracts in which an exchange of mutual, reciprocal promises between particles
that entails the performance of an act, forbearance from the performance of an act, with
respect to each party stated (
Bilateral Contracts
36
Requisites of contract
1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract-
3. Cause of the obligation which is established-
37
Agreement among parties and is required to be in writing by special laws.
Formal
38
The action or defense for the declaration of the inexistence of a
contract does not prescribe (Article ____)
1410
39
. A nurse's contract specifying her duties, salary, and benefits in a hospital setting
Expressed
40
s a legally binding agreement that establishes the rights and duties of the involved parties,
upheld by the court
Contracts
41
The aggrieved party can claim compensation for losses resulting from the
breach, such as the cost of hiring another service provider or financial damages caused by
the delay
Damages
42
ex: marriage, Deed
of Sale
Formal
43
who defines a contract as a meeting of the
minds between two parties, where one agrees to provide something or perform a service in
exchange for something else
Civil Code of the Philippines
44
term for inexistent or void accdg to chapter 9 of Art 1409
void ab initio
45
Concluded as a result of a written document where the law does not require the same to be in
writing.
Informal
46
The principle of in pari delicto is applicable in the first but not in the second.
Consequently, the first may produce effects (Articles ______), but the second does not
produce any effect whatsoever.
1411, 1412
47
ex. A nurse verbally agreeing to provide care for a patient without a written agreement
Informal
48
Challenge period can be challenged anytime
(imprescriptible)
Inexistent
49
a meeting of the
minds between two parties, where one agrees to provide something or perform a service in
exchange for something else
contract
50
an agreement that violates the law or public policy, rendering it
unenforceable in a court of law.
Illegal
51
When fraudulent information or material misrepresentation influenced the agreement, the
deceived party may be excused from performing.
. Fraud or Misrepresentation
52
Example: A nurse is coerced into signing an agreement to work unpaid
overtime under the threat of losing their job. Such agreements may be voided as they
were signed under duress.
Duress or Undue Influence
53
Example: During a natural disaster like Typhoon Haiyan in the Philippines, a nurse
scheduled to work at a healthcare facility is unable to report due to roads being
impassable. The nurse's inability to perform duties can be excused under a force majeure
situation, as circumstances were beyond their control
Force Majeure (Acts of God)
54
Under RA _____, Article _____, the following contracts are
considered voidable or annullable, even if no harm has been caused to the contracting
parties
386: Civil Code of the Philippines; 1390
55
Agreements that seek to undermine marriage laws, such as those involving divorce
settlements without court approval, can be considered illegal.
Contracts Affecting Marital Status
56
Even if a contract is legal at formation, if it is performed in an illegal manner (e.g.,
exceeding speed limits during a transportation agreement), it may be rendered
unenforceable.
Contracts Performed Illegally
57
Under RA 386: Civil Code of the Philippines, Article 1390, the following contracts are
considered voidable or annullable, even if no harm has been caused 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.
58
Cause of defect absence of essential
elements or illegality
Inexistent
59
Ex: Contracts that interfere with the administration of justice (e.g., bribery).
Common Law Illegality
60
The aggrieved party may demand that the breaching party fulfill
their contractual obligations. For instance, the customer could insist that the service provider
complete the agreed-upon work
Specific Performance
61
Happens when the breach significantly undermines the purpose of the
contract. Excessive delays or failure to complete the work may qualify as a substantial
breach.
Substantial Breach
62
It is a legally enforceable agreement; however, it may be considered non-binding for a party
who was under a legal disability or was a victim of fraud at the time of its execution
Voidable/Annullable
63
Advantages of written contracts
- It is certain and avoids uncertainty of human memory.
- It specifies a definite time which is binding so as to protect both sides against sudden
changes without notice.
- It fixes a time limit after which conditions are no longer binding but may be opened for rediscussion.
- It sets standards and relieves an individual professional from haggling over compensation.
- It promotes peace and security for faithful compliance therefore.
- It provides a precise record of the terms agreed upon between the parties.
- * It establishes the contractor's role by defining the agreement as a "services contract" rather
than an "employment contract.
- * It serves as a formal record of the agreement,
64
Ratification can be ratified by the injured
party
Voidable
65
Parties involved in an illegal contract typically cannot recover any damages or benefits
derived from the contract
No Recovery of Damages
66
ccurs when an obligation is not performed on time but is
eventually fulfilled. Depending on the circumstances, the delay may be excusable.
Slight Delay (Mora Solvendi)
67
A clear written or verbal offer is presented and accepted by the offeree in a way that
explicitly confirms their consent to its terms
Expressed
68
In some instances, if part of a contract is deemed illegal, courts may sever the illegal
portion and enforce the remaining legal parts.
Severability
69
In the Chapter _____, the following contracts are inexistent and void from the
beginning (void ab initio)
Chapter 9 of Article 1409
70
Example: A hospital employs a nurse but fails to provide the agreed-upon training or
salary. The nurse may refuse to continue working until the hospital rectifies the breach.
Breach by the Other Party
71
an equal bargaining power between parties which often begins with a period of
negotiation
Contracts
72
Any contract formed with the intention to engage in illegal activities is void.
Contracts with Illegal Objectives
73
Types of Breach
Slight Delay (Mora Solvendi)
Substantial Breach
Anticipatory Breach
74
Example: An agreement that a surgeon will perform a surgical procedure once the patient
submit his/her medical clearance from the laboratory.
Executory Contract
75
Such contracts are considered void from the outset, meaning
they have no legal effect. The illegality can arise from the contract's purpose, terms, or the
manner in which it is performed.
Illegal
76
For instance, a
contract to commit fraud or a tort is illegal.
Contracts with Illegal Objectives
77
refer to those where all of the requisites of a contract are present but the
cause, object or purpose is contrary to law, morals, good customs, public order or public
policy, or the contract itself is prohibited or declared by law to be void
Void contracts r
78
This agreement does not require written documentation but
can be inferred from the actions and behaviors of the parties involved
Implied
79
Ratification cannot be ratified or made
valid
Inexistent
80
It is formed through the actions or conduct of the parties involved, where the law assumes an
agreement exists based on their behavior
Implied
81
Example: A nurse is recruited by an agency claiming they will be placed in a well-equipped
urban hospital but is instead sent to an under-resourced rural clinic. The nurse may
rescind the agreement due to misrepresentation
. Fraud or Misrepresentation
82
Contracts that excessively limit competition or free trade can be deemed illegal under
antitrust laws.
Agreements Restraining Trade
83
Example: A nurse assigned to provide care at a rural health center finds that the center
has been destroyed in an earthquake. The nurse cannot fulfill their duties because the
facility no longer exists, rendering performance impossible.
Impossibility of Performance
84
Arises when one party clearly indicates, before the due date, that
they will not fulfill their contractual obligations
Anticipatory Breach
85
Circumstances that render performance impossible, such as the unforeseen destruction of
the subject matter not caused by either party, may excuse the obligated party from
performing.
Impossibility of Performance
86
The non-breaching party may refuse to perform their obligations when the other party
breaches a significant term of the contract.
Breach by the Other Party
87
Contracts that impose unreasonable restraints on trade (e.g., price-fixing agreements).
Common Law Illegality
88
Legal Status Void from the start (never
existed legally)
Inexistent
89
These contracts cannot be ratified. Neither can the right to set up the defense of illegality be
waived (Article ____).
1409
90
Example: A printed hospital admission form containing pre-determined terms and conditions
for patients to sign and consent for admission.
Adhesion Contracts
91
Legal Status valid until annulled by the injured
party
Voidable
92
Illegal contracts cannot be enforced by either party in court.
Void and Unenforceable
93
* It Imposes no legal rights or obligations upon the parties and is not enforceable by a court. It
is in effect, no control (
Void or Inexistent
94
occurs when one party fails to meet its obligations under a legally
binding agreement.
Breach
95
Example: A nurse is accused of negligence in patient care, but the claim is filed years after
the statute of limitations for malpractice cases has expired. The nurse is no longer
required to address the claim legally
Statute of Limitations
96
Example: A nurse and their employer agree to terminate a contract early due to
unforeseen circumstances, such as the nurse pursuing further studies abroad. Both
parties agree, excusing the nurse from further duties.
Mutual Agreement to Rescind
97
ex: A hospital may require nurses to sign a formal contract outlining their duties and the
duration of their employment
Formal
98
refer to those where one or some or all of those requisites which are essential for validity are
absolutely lacking.
b. The principle of in p
Inexistent contracts
99
Ex: Contracts for illegal activities, such as drug trafficking or gambling where prohibited.
Agreements that violate specific statutes or regulations.
Statutory Illegality
100
Legal effect Creates rights/obligations until
annulled
Voidable
101
Enforcement of agreement among private individuals or payment of
compensation for failure to fulfill the agreements (
Contracts
102
Remedies for Breach of Contract
* Specific Performance
Rescission
Damages
103
A contract with a nurse who is not licensed to practice would be considered void
Void or Inexistent
Jurisprudence
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Decks in class (9)
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