Ch. 12 - Unenforceable Contracts

Question 1

(Art. 1403) The following contracts are unenforceable, unless they are ratified

Answer 1

1. Unauthorized contracts
2. Those that do not comply with the statute of frauds; and
3. Those where both parties are incapable of giving consent to a contract

Question 2

What is an unenforceable contract?

Answer 2

A valid contract that, because of some technical defect, cannot be fully enforced; a contract that has some legal consequences but that may not be enforced in an action for damages or specific performance in the face of certain defenses, such as the statute of frauds

Question 3

What is an unauthorized contract?

Answer 3

Those entered into in the name of another person by one who has been given no authority or legal representation, or who has acted beyond his powers

Question 4

Why does the law require a contract to be in some form?

Answer 4

Generally, contracts are obligatory, in whatever form such contracts may have been entered into, provided all the essential requisites for their validity are present. However, when law requires a contract be in some form for it to be valid or enforceable, that requirement must be complied with.

Question 5

A certain form may be prescribed by law for any of the following purposes:

Answer 5

for validity, enforceability, or greater efficacy of the contract

Question 6

When the required form is for enforceability, non-compliance therewith will

Answer 6

not permit, upon the objection of a party, the contract, although otherwise valid, to be proved or enforced by an action

Question 7

What is Statute of Frauds

Answer 7

is descriptive statutes which require certain classes of contracts to be in writing. The statute does not deprive the parties of the right to contract with respect to the matters therein involved, but merely regulates the formalities of the contract necessary to render it enforceable

Question 8

The statute of frauds embodied in Art. 1403, paragraph (2), of the Civil Code requires

Answer 8

certain contracts enumerated therein to be evidenced by some note or memorandum in order to be enforceable. Evidence of the agreement cannot be received without the writing or a secondary evidence of its contents.

Question 9

What is the purpose of statute of frauds?

Answer 9

is to prevent fraud and perjury in the enforcement of obligations depending for their evidence on the unassisted memory of witnesses, by requiring certain enumerated contracts and transactions to be evidenced by a writing signed by the party to be charged.

Question 10

The Statute of Frauds expressed in Art. 1403, par. (2), of the Civil Code applies only to

Answer 10

executory contracts, i.e., those where no performance has not yet been made, not to completed, executed or partially consummated contracts

Question 11

Are things not among those listed under the Statute of Frauds

Answer 11

1. Right of First Refusal
2. Oral Partition

Question 12

Under the provision, concerning a guaranty agreement, which is a promise to answer for the debt or default of another, the law clearly requires that

Answer 12

it, or some note of memorandum thereof, be in writing. Otherwise, it would be unenforceable unless ratified.

Question 13

(Act. 1404) Unauthorized contracts are governed by

Answer 13

Art. 1317 and the principles of agency in Title X of this book

Question 14

(Art.1405) Contracts infringing the Statute of Frauds, referred to in No.2 of Art. 1403, are

Answer 14

ratified by the failure to object to the presentation of oral evidence to prove the same, or by acceptance of benefit under them

Question 15

What is parol evidence?

Answer 15

Evidence of oral statements

Question 16

(Art. 1406) When a contract is enforceable under the Statute of Frauds, and a public document is necessary for its registration in the Registry of Deeds, the parties may

Answer 16

avail themselves of the right under Art. 1357

Question 17

(Art. 1407) In a contract where both parties are incapable of giving consent, express or implied ratification by the parent, or guardian, as the case may be, of one of the contracting parties shall give the contract

Answer 17

the same effect as if only one of them were incapacitated

Question 18

(Art. 1407) If ratification is made by the parents or guardians, as the case may be, of both contracting parties, the contract shall be

Answer 18

validated from the inception

Question 19

(Art. 1408) Unenforceable contracts cannot be

Answer 19

assailed by third persons