KINDS OF VOIDABLE CONTRACT

• VOIDABLE CONTRACTS – these contracts are actually valid and binding although they may be annulled by a proper action in court. They are susceptible of ratification. Voidable contracts are still defective contracts because they contain some defect/s that serve as a ground to annul them. However, unless and until they are annulled by the court, voidable contracts shall remain to be valid and binding to the parties and the whole world. Hence, voidable contracts are valid until annulled.
• 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 a contract;
• The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties:

   

  (2) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud. (Art. 1390)
• Those where one of the parties is incapable of giving consent to a contract;


  A contract entered into by a minor below 18 years old.
• Those where one of the parties is incapable of giving consent to a contract;


  A contract entered into by person with insanity.
• Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud. (Art. 1390)


  A contract entered into by a person under life threat.
• Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud. (Art. 1390)


  A contract entered into by a person under the influence of maneuvering substance, alcohol or drugs.
• NOTE: The action for annulment shall be brought within four (4) years.

  This period shall begin:

  From the time the defect of the consent ceases, in cases of intimidation, violence or undue influence. In case of mistake or fraud, from the time of the discovery of the same. (Article 1391)
• NOTE: Ratification extinguishes the action to annul a voidable contract. Ratification may be effected expressly or tacitly. Express ratification happens when a document is executed to recognize the validity of the contract. 
• NOTE(2): On the other hand, it is understood that there is a tacit ratification if, with knowledge of the reason which renders the contract voidable and such reason having ceased, the person who has a right to invoke it should either remain silent or shall perform an act which necessarily implies an intention to waive his right. Ratification may be effected by the guardian of the incapacitated person.