Chapter 13: Validity of a Contract Flashcards
NULLITY (void)- Breach of interests (hint: who can claim nullity)
General interests. It is absolute, meaning anyone who has interests can claim nullity.
ANNULMENT (voidable) - Breach of interests (hint: who can claim annulment)
Specific interests. It is relative, so up to the specific party to seek annulment.
NULLITY (void) - situations where it applies
Absence of one of elements of contract.
ANNULMENT (voidable) - situations where it applies
Contracts concluded by incapacity to act, or when there is a “defect of consent” (essential and recognizable mistake, moral violence i.e. threat, or malice i.e. deception)
Invalidity of contracts
If a contract is invalid it’s not binding nor legally effective (i.e. ineffective). - both void and voidable = invalid
NULLITY - motion (hint: validation)
Must be found of its own motion (irrespective of plaint). Hence it cannot be validated (court must point out). However, it can produce the effects of a different contract the parties would’ve entered into not knowing of nullity.
ANNULMENT - motion (hint: validation)
Cannot be found of its own motion (courts must remain impartial). Hence, it can be validated (keep contract although voidable).
NULLITY - limitations
1) Usucaption
2) After 10 years of transaction
ANNULMENT - limitations
Period of 5 years after entering into contract (for minors, start at age of majority).