Obligations and Contracts (Voidable)

The following contracts are voidable, except:

• A. Contacts entered into during a state of drunkenness or hypnotic spell

• B. Contacts entered into during a lucid interval

• C. Contacts where one of the parties is incapable of giving consent

• D. Contracts where the consent of one party is vitiated by violence, intimidation, mistakes, fraud or undue influence

What is the status of a voidable contract before it is annulled by a competent court?

• A. Void

• B. Voidable contract

• C. Valid contract

• D. I dont know

What is the prescriptive period for filling an action for annulment of a voidable contract?

• A. 1 year

• B. 2 years

• C. 3 years

• D. 4 years

Which of the following is not true with respect to the reckoning of the beginning of the prescriptive period?

• A. In cases of intimidation, violence or undue influence, the period begins from the time the defect in the consent ceases

• B. In case of fraud, the period begin to run from the discovery thereof

• C. In case of mistake, the period begins to run from the time it was commited

• D. In cases of contacts entered into by minors or other incapacitated persons, the period runs from the time the guardianship ceases

Which of the following statements concerning ratification of a voidable contract is not true?

• A. Ratification extinguishes the action to annul a voidable contract

• B. Ratification cleanses the contract from all its defects from the moment it was constituted

• C. Ratification requires the conformity of the party who has no right to bring the action for annulment

• D. Ratification may be made by the guardian of the incapacitated person, or the incapacitated person upon attaining capacity, or the party whose consent was vitiated

One of the following may not annul a voidable contact

• A. The party whose consent is vitiated by violence, intimidation, mistake, fraud or undue influence

• B. The incapacitated person when he attains capacity

• C. The guardian, during the ward’s incapacity

• D. The party who is capable of entering into a contract

Alpha, an employee of a private company, sold his car for P100,000 to Bravo, whom he knew was only 17 years old. Alpha delivered the car to Bravo who immediately paid. Later, Alpha was transferred to another branch of his company which was quite a distance from his residence. He wanted to get the car back from Bravo so that he will have something to use in going to and from his new office. Neither Bravo nor his guardian has registered the sale with the Land Transportation office. Which is true with regards to the situation?

• A. Alpha can file an action to annul the sale he made to Bravo because he was mistaken in selling the car which he realized he badly needed

• B. Alpha can ask the court to annul the sale because Bravo was a minor when the contract of sale was entered into and it has not yet been recorded in the Land Transportation Office

• C. Only Bravo, when he attains the age of majority, or his guardian while Bravo is still a minor, can bring an action to annul the contract

• D. The minority of Bravo has no effect on the validity of the contract since the parties entered into the contract freely

Which of the following statements about ratification is not true?

• A. Ratification requires the conformity of the contracting party who has no right to bring the action for annulment

• B. The cleansing of the defect of the contract of a ratified voidable contract take effect from the time the contract has been validly ratified

• C. The retroactive effect of ratification in cleansing the defect of a voidable contract will not prejudice the rights of innocent third persons

• D. Voidable contracts that are not ratified are effective and valid

D, who owns a parcel of land, is indebted to C for P10,000. X, who is interested in buying the land, intimidated D to sign a deed of sale transferring the land to X.

Question: Can C annul the contract between D and X?

• A. No, because he is not a party to the contract. In short, C is not obliged by the terms of the contract, either principally or subsidiarily.

• B. No, because he is a party to the contract. In short, C is obliged by the terms of the contract.

• C. Yes, because he is a party to the contract. And C is not obliged by the terms of the contract, either principally or subsidiarily.

• D. Yes, because he is not a party to the contract. In short, C is not obliged by the terms of the contract.

S, minor, owns a parcel of land planted with kamote. S sold this land to B for P10,000. After reaching the age of majority, but within four years, S filed an action for annulment and the court annulled the contract.

Question: What are the rights and obligations of the parties?

• A. S must return the P10,000 only . And B must return the property or land only.

• B. S will not return anything since he is incapacitated. B has no obligations to fulfill since S is incapacitated.

• C. S must return the P10,000 plus the interest. B must return the property or land plus the fruits of the land.

• D. S, being incapacitated, is not obliged to return anything. B, however, should return the property plus the fruits of the land.