Kinds of Defective Contract

The Four Kinds of Defective Contracts

|RESCISSIBLE |VOIDABLE |UNENFORCEABLE |VOID |

|a. Nature of Defect: |a. Nature of Defect: |a. Nature of Defect: CONSENT (both |a. Nature of Defect: CAUSE OR OBJECT is defective or |

|- ECONOMIC DAMAGE or pecuniary |-CONSENT IS DEFECTIVE |are incapacitated or lack of |absolutely simulated or fictitious or parties’ |

|prejudice (“lesion”) | |authority to represent / to act as an |intention cannot be ascertained or expressly |

| | |agent) NOT IN WRITING |prohibited or declared void by law |

|b. Kinds: |b. Kinds: |b. Kinds: |b. Kinds: |

|1) Guardians contract involving |1) one of the parties has no leagal |1) Both parties are incapacitated |1) Cause or object is; |

|property of his ward if the lesion |Capacity | |a) contrary to law, morals, good |

|is more than one fourth | |2) Unauthorized contracts |customs, public order or public...