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:
(a) The contract of sale is voidable. Under the Civil Code, a contract if voidable or annullable if one of the parties is incapable of giving consent to a contract. The 16-year old Lana is incapable of giving consent.
(b) The contract of lease is void. Under the Civil Code, the object of a contract must be within the commerce of men. The Philippine Sea is public dominion and thus outside the commerce of man.
(c) The barter is unenforceable. Under the Civil Code, a contact is unenforceable if both parties are incapable of giving consent to a contract. Both parties are minors and thus both are incapable of giving consent.
(d) The contract of sale is valid. Under the Civil Code, unenforceable contracts may be ratified and thus become valid. The sale between minors, Barri and Garri, was unenforceable. However, with the ratification by their parents, the sale became valid. (e) The contract of sale is rescissible. Under the Civil Code, a contract is rescissible if undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them. The sale by Jenny of her car was in fraud of her creditors.
