1. Concept The following contracts are inexistent and void from the beginning: 1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy; 2) Those which are absolutely simulated or fictitious; 3) Those whose cause or object did not exist at the time of the transaction; 4)…
1. Concept Voidable contracts are binding, unless they are annulled by a proper action in court.(Paragraph 2, Article 1390, Ibid.) a. Voidable contracts The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties: 1) Those where one of the parties is incapable of giving consent to…
1. Concept Contracts validly agreed upon may be rescinded in the cases established by law. (Article 1380, Civil Code) The term “rescission” is found in: 1) Article 1191 of the Civil Code, the general provision on rescission of reciprocal obligations; 2) Article 1659, which authorizes rescission as an alternative remedy, insofar as the rights and…