Voidable Contracts

Question 1

ART. 1390

Answer 1

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 are incapable of giving consent to a contract;
2. ) Those where the consent is vitiated by mistake, violence, intimidation, undue influence or fraud.

These contracts are binding, unless they are annulled by a proper action in court. They are susceptible of ratification.

Question 2

ART. 1391

Answer 2

The action for annulment shall be brought within four years.

The period shall begin: In cases of intimidation, violence or undue influence, from the time the defect of the consent ceases.

In case of mistake or fraud, from the time of the discovery of the same.

And when the action refers to contracts entered into by minors or incapacitated persons, from the time the guardianship ceases.

Question 3

ART. 1392

Answer 3

Ratification extinguishes the action to annul a voidable contract.

Question 4

ART. 1393

Answer 4

Ratification may be effected expressly or impliedly. It is understood that there is a tacit ratification if, with the knowledge of the reason which renders the contract voidable and such reason having ceased, the person who has the right to invoke it should execute an act which necessarily implies an intention to waive his right.

Question 5

ART. 1394

Answer 5

Ratification may be effected by the guardian of the incapacitated person.

Question 6

ART. 1395

Answer 6

Ratification does not require the conformity of the contracting party who has no right to bring the action for annulment.

Question 7

ART. 1396

Answer 7

Ratification cleanses the contract from all its defects from the moment it was constituted.

Question 8

ART. 1397

Answer 8

The action for annulment of contracts may be instituted by all those who are thereby obliged principally or subsidiarily. However, persons who are capable cannot allege the incapacity of those with whom they contracted; nor can those who exerted intimidation, violence or undue influence, or employed fraud, or caused mistake base their action upon these flaws of the contract.

Question 9

ART. 1398

Answer 9

An obligation having been annulled, the contracting parties shall restore to each other the things which have been the subject matter of the contract, with their fruits, and the price with its interest, except in cases provided by law.

In obligations to render service, the value thereof shall be the basis for damages.

Question 10

ART. 1399

Answer 10

When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any restitution except insofar as he has been benefited by the thing or the price received by him.

Question 11

ART. 4000

Answer 11

Whenever the person obliged by the decree of annulment to return the thing can not do so because it has been lost through his fault, he shall return the fruits received and the value of the thing at the time of the loss, with interest from the same date.

Question 12

ART. 1401

Answer 12

The action for annulment of contracts shall be extinguished when the thing which is the object thereof is lost through the fraud or fault of the person who has a right to institute the proceedings.

If the right of action is based upon the incapacity of any one of the contracting parties, the loss of the thing shall not be an obstacle to the success of the action, unless said loss took place through the fault or fraud of the plaintiff.

Question 13

ART. 1402

Answer 13

As long as one of the contracting parties does not restore what in virtue of the decree of annulment he is bound to return, the other cannot be compelled to comply with what is incumbent upon him.