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Defective Contracts

Contracts must meet essential requisites for validity, but certain forms are required for enforceability. Unenforceable contracts can be ratified through acknowledgment or acceptance of benefits, and oral contracts may still be binding if executed. The Statute of Fraud necessitates written contracts for certain agreements, but failure to object to oral proof waives the right to claim the statute's benefits.

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Rod Albert Canete
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18 views1 page

Defective Contracts

Contracts must meet essential requisites for validity, but certain forms are required for enforceability. Unenforceable contracts can be ratified through acknowledgment or acceptance of benefits, and oral contracts may still be binding if executed. The Statute of Fraud necessitates written contracts for certain agreements, but failure to object to oral proof waives the right to claim the statute's benefits.

Uploaded by

Rod Albert Canete
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CHAPTER 8 Unenforceable Contracts (n)

By law, contracts are obligatory in whatever form they may have been entered into, provided
all the essential requisites for their validity are present. However, when the law requires that a
contract be in some form in order that it may be valid or enforceable, or that a contract be
proved in a certain way, that requirement is absolute and indispensable. Consequently, the
effect of non-compliance with the requirement of the Statute is simply that no action can be
enforced unless the requirement is compiled with. The form required is for evidentiary
purpose only. Hence, if the parties permit a contract to be proved, without any objection, it
will then be binding.

●​ Contract that lacks authority, or of writing, or for incompetence of both parties, cannot
be given effect unless properly ratified. Lack of writing does not make the agreement
void or nonexistent. It merely bars suit for performance or breach and such defect can
be cured by acknowledgement or ratification.
●​ In Heirs of Alido vs Campano Unenforceable contract is not necessarily void since it
can be ratified by failure to object to the presentation of oral evidence to prove the
contract itself, or by the acceptance of benefits. Such contracts must be reduced in
writing, otherwise it won’t be unenforceable by action. Likesale of real property must
be evidenced by a written document as an oral sale of immovable property is
unenforceable. - The sale of real property must not be consigned in a public
instrument of formal writing because a verbal sale of real estate produces legal effects
between the parties.

​ An oral sale of real property is not void and even enforceable and binding between the parties if it
has been totally or partially executed.

●​ The Statute of Fraud is a descriptive statute that requires some contract 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. Evidence of the agreement cannot be received
without the writing or a secondary evidence of its contents.

​ Failure to object to the proof of an oral contract a party waives the benefit of the statute and
cannot afterward claim it.

https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/67148

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