Nullity Flashcards
2029 Nullity of contracts
a contract is null when the requirements for its formation have not been met
2030 Absolute nullity
A contract is absolutely null when it violates a rule of public order. May not be confirmed.
- A contract which contravenes public order is absolutely null
2031 Relative Nullity
A contract is relatively null when it violates a rule intended for the protection of private parties. May be confirmed.
- Breach of a relatively null contract is possible
- If a contract is null, you return to everything before the contract was made
- TIME MACHINE
2032 Prescription of action
Action for annulment of an absolutely null contract does not prescribe
Action for annulment of a relatively null contract must be brought WITHIN 5 YEARS from the time the ground for nullity either ceased, as in the case of incapacity or duress, or was discovered, as in the case of error or fraud.
Nullity may be raised at any time as a defense against an action on the contract, even after the action for annulment has prescribed.