Understanding Defective Contracts: Receivable, Avoidable, and Void Contracts Explained

hi hello welcome to our channel so actually and thank you for continuously

supporting this channel and then afternoon and detonation final

topic obligation and contracts by the remaining chapters we will be dealing with the defective

contracts this is very importance important obligation and contracts okay

obligation and contracts and yet hindi new alarm comes receivable contracts annually avoidable

contracts and enforceable contracts and void contracts okay to give way to this topic next

keep tayung interpretation of contracts continuous let's begin

first and foremost mr holland would begin an overview cinebasier receivable contracts when you

say receivable contracts actually valid essential requisites of a contract exist

but for some reason by reason of i mean economic injury or damage to one of the parties or

to third person like young accreditors by reason of economic injury or damage to one of the parties

such as leshon okay now when you say voidable contracts command etho and status and avoidable contracts

previously in our discussion valid until announced okay unless there has been ratification

ratify so if indeed young [Music]

so that's it we will be discussing this thoroughly later baka's next video is

[Music] afternoon receivable contracts and then third

is young and enforceable contracts etunamans when you say an enforceable from the word itself

hindi mo padingma enforced unless ratified okay and status yahin bishop wedding

enforced unless the ratified muna apos jakamusha predigma enforced okay and lastly every human avoid or

inexistent contracts young absolutely now and void okay contracts

which have no effect at all and cannot be ratified cassie avoid the legacy

and so in existence so there are actually four types or classes of defective contracts and they

are arranged from the less serious to the most serious defects okay first unless serious defects languito is

young receivable contracts next to that is avoidable contracts and then mass defective packages

avoidable contracts is an enforceable contracts and jumping a defective delega is young void

contracts okay so simulanna did nothing let's start with article 1380 let's start discussing

thoroughly serial contracts article 1380 says that contracts validly agreed upon may be

rescinded in the cases established by law contracts validly agreed upon

valid all the essential elements or requisites exist therefore legally

effective domain remedy some party dahil merong economic injury or damage

sakanya or to third persons and so very shang mariscent okay so young purpose

is to secure reparation of the damage caused by a valid contract okay especially if the

enforcement of that contract would cause injustice so anuba and contracts okay somebody article 1381

the following contracts are receivable first those which are entered into by regard chance whenever the words

whom they represent suffered lesson by more than one-fourth of the value of the things

which are the object thereof second those agreed upon in representation of

absentees if the latter suffer that is shown stated in the preceding number third those undertaken in fraud of

creditors when the latter cannot in any other manner collect

the claims do them fourth those which refers to things under litigation if they have been

entered into by the defendant without the knowledge and approval of the litigants or of competent judicial

authority and fifth all other contracts specially declared by law to be subject to

recession so article 13 81 obviously provides for cases or situations instances

like enumeration and anub are receivable contracts contracts entered into in behalf of

words so savvy yoon down and enter into by the guardian papo's young word in representation of

the word ha tapos has suffered less sean by more than one-fourth of the value of the things

which is the object thereof actually massimo deletion he explained through an example

when you say why young person who is under guardianship kasinga he's

incapacitated so usually ma minor but the thing didn't mention limited some minors

anyway example foggy is the guardian of say ganda a minor benentani pogi and property

nigendanoverse supposedly is one million pesos and benentanylang

for eight hundred thousand pesos in that example hindi naman maleri saint cassey

young leshon or yes young leshon is actually not more than one-fourth so hindi pasha pasokai

paragraph number one parapan more than one fort say bineta langnipogi nang 500 000 pesos

or the damage or injury to the party ganda is actually more than one fourth so in this case wedding

marissa and niganda and napa bentani let's proceed with the second no

individual enumerate me article 1381 as a receivable

contracts sabi dunaman contracts which is agreed upon in representation of absentees actually same explanation

without of number one para holland no mancilla represents

who disappears from his or her domicile and his whereabouts being unknown without leaving an agent to administer

his property henry that is very legal term but angus absentee suffers less shown

by more than one-fourth of the valley of the property which is the object of the contract

uh it gives or it entitles that absentee the by more than one-fourth same with young

paragraph number one guardian in representation of his words now as a general rule talaga

lishon does not invalidate a contract on a discussion or nothing previously i my exceptions and one of the exception

is young manga transactions which is entered into by the guardians on the

representative absentees okay now let's proceed with the number three

at long ex i mean enumeration non-receivable contract sabi you know contracts

undertaken in fraud of creditors concept well if you see action

okay action payload contracts in to defraud your creditor say credit or i made all the right

to resend the contract okay well and so in that case uh breading marie sandy ganda

and contract between foggy and the beauty can say it was done to defraud her

okay pero that is pretty long if in the case then the court will not resent the

contract between foggy and beauty okay those undertaken in fraud of creditors

when the latter cannot in any other manner collect the claims due them so

fraudulently thai beauty okay so that's the third case another is things in litigation

things under litigation if they have been entered into by the defendant without

the knowledge and approval of the litigants so and entered into non-defendant

papos judicial authority so example if the foggy he files a case against

ganda for recovery of a diamond drink so pending litigation diamond ring to beauty without the

approval of pogi or valadi approval and court and so young

miss diamond ring in favor of beauty can be rescinded it is actually a recessible contract so pretty shanghai

stand at poggy's instance dawn with the original litigation

unless nasty beauty acted in good faith well aside for the recovery of that diamond ring so

that is already considered as in litigation a young diamond ring

so if ever benedict on that contract is recessible now fifth the onsen enumeration and receivable

contract submit all other contracts especially declared by law to be subject to recession so

specified by law to be receivable so that's it that's the enumeration for a receivable

contracts so hindi exclusive number five receivable contracts now if

ever maybe an examination so that would also be irresistible contracts

now let's proceed with article 1382 sabi payments made in a state of insolvency for

the obligations to host fulfillment the debtor could not be compelled at the time they were

affected are also receivable okay well there's this talks about premature

payments made in a state of insolvency so judicially declared insolvent

must have been insolvent pap was second the death was not yet due and demandable for obligations to whose fulfillment the

debtor could not be compelled at the time they were affected

so hindi pa jew and demandable so the patient requests both conditions are required

so that is irresistible and hindisha exclusive serial contracts enumeration in 1381.

okay now let's proceed with article 13 sabi the action for recession is subsidiary it

cannot be instituted exact when the party's suffering damage has no other legal means to obtain

preparation for the same so young recession is actually not a principal remedy so meaning

subsidiary sabihin if young injured party has no other legal means for seeking

redress or reparation for the damages that he has suffered so if the action was filed i

mean recession was filed on track in front of creditors

so obligation jew then alibaba if dunamis through

representatives liking sagarjun representing the word or young representative representing

the absentees contract then recession cannot take place

okay union ibxabihimi article 1383 subsidiary indica principal okay so meaning the injured party

has to prove that he has no other legal names or aside from rescinding that contract

talaga okay so that is article 13 83 let's proceed with article 13 84

sabi recession shall be only to the extent necessary to cover the damages

cost so aside from the mahindi principle remedy subsidiary extent of recession hindi naman

talaga entirely maria resent young contract it will only up to that extent na nazi

sorry fala mahavir damages okay jung contract need not be set aside

i got in it's entirely by recession if young damages can be covered by a partial recession so partial recession

or in the law also wants to preserve or respect that contract because the after all valid

contract only that one party or other parties other person suffered damages or

prejudice by the contract right so the only purpose of recession

is actually either to repair the damage or to cover the damage cost so comparing them

to my other legal remedies as much as possible hindisha really said young contract hindi a

resent and contrata okay now article 13 85 recession creates the obligation to

return the things which we are the object of the contract together with their fruits

and the price with its interest consequently it can be carried out only when he who

demands recession can return whatever he may be obliged to restore taco second paragraph

neither shall recession take place when the things which are the object of the contracts

are legally in the possession of third person who did not act in bad fate and

last paragraph in this case indemnity for damages may be demanded from the person

causing the loss so eto is i mean this provision speaks about the mutual institution

precision creates an obligation of mutual restitution general larold and makikita nothing's

the first paragraph young plaintiff or your complainant

who demands recession that path he must be able to report what has been received by virtue of that

contract that receivable contract okay and it also includes diba the fruits patipanga

interest no price returned but you have that ability to return

just things that you owe to the other party para magdimen

legally in the possession of a third person who did not act in bad faith so meaning in good faith

so if young bad guy legal possession and a third person who is in good faith from that third person better take note

meron shang requirements first that in legal possession and second

hindi act in bad faith so meaning in good faith contracts right and so i'm stabbing a

third paragraph in such case or in this case indemnity for damages may be demanded from the

person causing the loss so fascinating recession of contracts then

indemnity for damages not long an indie demand from that person from that guilty person so

let's have an example etto in front of poggy's creditors then benentanya kanyang lupa in favor of

ganda okay para to defraud his creditors okay and so if no other

legal names are found exact satisfaction of the credits we just focused on the right of the

third person or i mean to resend that contract a the sale of pogi of his lands in favor

of gandha be resented the answer is it depends upon whether siganda was in good faith or

in bad faith just say subbing an article 1385 second paragraph again neither shall

recession take place when the things which are the object of the contract are legally in the possession of a third

person who did not act in bad faith so if ganda did not act in bad faith then

she is protected okay hindi number said if she acted in bad faith for the angry session

okay the recession will prosper now follow up question since the creditors cannot resend the contract

what is their remedy kasihindina nilamari said if ever ganda acted in any good faith

so young third person who is now in legal possession of that property acted in good faith

hindi nama recent so anu and remedy creditors so the third or the last paragraph

provides that indemnity for damages may be demanded well let's proceed with article 13 86

sabi recession referred to in number 1 and 2 of article

1381 shall not take place with respect to contracts approved by the courts so

contracts the um recessible contracts that he entered into by the guardian or

young representative in favor of the word or the absentees tapus nagaronan leshon

by one-fourth of the value of the property so

recession that's it that's article 1386 it's as simple as that so let's proceed with

article 1387 sabine all contracts by virtue of which the debtor alienates property by

gratitude's typo are presumed to have been entered into an fraud of

creditors when the donor did not reserve sufficient property to pay all debts contracted before the donation

taco's second paragraph alienation by ordinary title are also presumed through the land when made by

persons against whom some judgment has been rendered in any instance or some rate of

attachment has been issued the decision or attachment need not refer to the property eliminated

and did not have been obtained by the party seeking the recession last paragraph in addition to

the presumption you designed to defraud creditors may be proved in

any other manner recognized by law of evidence so eto presumption of fraud

so in yeah and this provision or article presumptions of fraud the law and scenarios

first in case of gratitude alienations and then second kailaniman maka karunan presumption of fraud sa uneros

alienations alienations is in alienatement property well another term is

transfer of property from the debtor or from the owner to the other person not

transferring sufficient property to pay all the debts contracted

before the donation presumed to have been entered into fraud of creditors

it was done to defraud the creditors pakis donor ihindi nagari served and sufficient property to pay all debts

contracted before the donation but before that before nia dino served not enough property enough

portion of that to pay samanha previously or previous obligations nya which alumni

do and demand of all demandable eventually so that donation is presumed in front of

creditors but of course yunya presumption lineshop readiness president nan or magsho proof na

it is not done to defraud his creditors part of the burden is okay

so if young is ganito and then later on

and what was left as assets are much less okay

non donation so meaning article 1387 is hindi applicable

last sentence on first paragraph when the dietary did not reserve sufficient property to pay all debts

contracted before the donation donation

so hindi presumption actually when presumption young donation was done in fraud of creditors

well young presumptions so meaning if it can be shown but in later on that it was

done really to defraud his creditors in bahama prospering mancy recession case okay now let's proceed

with onyro's alienation alienations naman that that transaction was made to

defraud the creditors first page when made by a person against whom some judgment has been

rendered in any instance judgment and rendered sahaniya

or against whom some rit of attachment has been issued okay

judgment or some rate of attachment property it was done flutulently to defraud

your creditors okay let's take an example if afternoon judgment has been rendered

against bogie eton property to ganda so your question is

is the sale presumed through the land the sale is presumed through the land because it

was made after a judgement had been issued against bogie perro

property before young judgement so it was done to defraud your predators

okay malinova anyway please take note that the decision or attachment need not

refer to the property alienated article 1387 young decision or young attachment

property or in our example is

okay unfavorable judgement okay now another creditor in the name of

beauty wants to restart this contract between foggy and ganda guston young is

in favor of ganda now pogi and ganda claim now right see beauty to descend to interfere

to resend their contract after all hindi naman shayung judgement creditor secretary evan creditor unlike filed and

case who obtained a favorable judgment against

kogi so question unclaimed nipogi at niganda the answer is no

pogi and gender is not justified dahil yes the decision did not have been obtained

by the party seeking the recession now let's proceed with article 13 88 sabine article 13

88 whoever acquires in bad faith the staying alienated in fraud of predators

shall indemnify the latter for damages suffered by them on account of the alienation

whenever you any cause it should be impossible for him to return them there are two or more alienations

the first acquirer shall be liable first and so on successively so after the provision

talks about the effect of bad faith no only in favor of a third person in property

now if that third person acted in so article 1388 provides for that okay well our article 1388 first

paragraph it is impossible for him to return so meaning

first and foremost dapat is only he must return the same if the sale is rescinded now if it is

impossible for him to return the property due to whatever cause to any cost then

an option is to indemnify the defrauded creditors now take note due to any cost so meaning

return on property is due to fortitude event for for i mean for indemnity of damages

then he is liable to pay or to indemnify the defrauded creditors for damages and your second paragraph

i know talks about subsequent transfers transfer foreign

purchase known property which was transferred or sold to defraud the creditors

uh and if he is in bad faith then the next transferee is liable if he also acted in bad faith so

example ganito foggy in front of his creditors property to ganda who is also

in bad faith in runs furniture in favor of beauty now if later young manga defrauded

creditors filed a case for recession and the contract was

rescinded okay now contracts say article article 1388 see for chaser in

bad faith will be liable to pay for diamond chest inside the fraud creditor

so in this example now if hindi for damages then young subsequent transferee i

imagine liable then so see beauty i'm a gigging lion golden because

the law says that if there are two or more alienations the first acquirer shall be liable

first and so on successively so if ever it's a beauty in a transformation

next okay and so on successively the article 13 88 so well that's it that's article 1388

let's proceed with article 1389 the last position for this session study the action to claim recession must be

commenced within four years for persons under guardianship and for absentees

the period of four years shall not begin until the termination of reformers in capacity or

until the dummy sale of the latter is known so meaning

from that time from the date known enough through the land transaction meltdown

four to so upon reaching minorities and four years

and he suffered more than one fourth so from the moment then he has four years from that

well that's it that's article 13 89 see you in our next video we will be discussing avoidable contracts

if marum kaiong hindi 19 bihan i suggest you go back to the previous discussions of obligation and contracts so thank you

once again and god bless