Void Contract
Void Contract
Void Contract
CONTRACT
GROUP 1
Prepared by: Ong, Lominoque, Mabilog, Castillon, Hamdan, Ga-as, Calanza, Mating
Presented by: Ebol, Eijansantos
VOID
Void contracts are those that, because of certain defects,
produce no effect at all. A contract which fails to be
enforceable by law is considered a void contract from the time
when it lacks enforceability.
INEXISTENT
Inexistent contracts refer to agreements which lack one
or some or all of the elements or do not comply with
formalities required by for the existece of a contract.
QUESTIONS VOID
VOID
VALID? NO CONTRACT
BINDING? NO
ENFORCEABLE? NO
MISSING ESSENTIAL
WHY DEFECTIVE?
ELEMENTS
CAN BE RATIFIED? NO
ARTICLE
a. The parties shall have no
1411 action against each other
Situation Remedies
The party paying the usurious interest can recover the excess of the
Recovery of usurious
maximum allowed under the Usury Law, including interest that have
interest. (Art. 1413)
already been paid.
The innocent party can recover what he has given to the guilty party only if:
1. The contract is for an illegal purpose;
Recovery where contract
2. The contract is repudiated before the purpose has been accomplished
entered is for illegal
or before any damage has been caused to a third party; and,
purpose. (Art. 1414)
3. The court considers that public interest will be subserved by allowing
recover
Recovery can be allowed if one of either guilty parties is incapacitated
Recovery by an and if the interest of justice so demands, regardless if the purpose has
incapacitated person. (Art. not been accomplished or no damage has yet to be caused to a third
1415) party.
Recovery of amount of If an employee receives less than the minimum wage rate, he can
wage less than minimum still recover the deficiency with legal interest and the employer shall
fixed. (Art. 1419) be criminally liable.
THANK YOU!