Classification of Contracts

Classification of contracts depending on gravity;

  1. Rescissible Contract.
  2. Voidable
  3. Unenforceable
  4. Void

Rescissible is one which has all the essential requisites of a contract by which may be set aside by reason of equity on account of damaged to one of the contracting parties or upon a third person.

Voidable – defective by reason of incapacity or vitiated consent of one of parties binding unless annulled by proper court of action.It is susceptible of ratification.

Unenforceable – one that cannot be enforced unless ratified and available only to contracting parties not to third persons.

Void or Inexistent Contracts – one which has no effect from the beginning (void ab initio), as if it had never entered into or which cannot be validated either by time or ratification.

Advertisements

About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
This entry was posted in Business Law and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s