Unenforceable Contracts

One that cannot be enforce unless ratified.

Ratification – adoption or affirmation of a contract which is defective.

  • extinguishes the action to annul a voidable contract.
  • cleanses the defects of a contract from the moment it was constituted and validated from inception.

The following are examples of Unenforceable contracts:

a. Those entered into agreement into the name of another person by who has given no authority or legal representation or who has acted beyond his powers.

b. Those do not comply with the statute of Frauds to prevent commission of frauds by requiring certain contracts to be in writing.

Following should be in writing to be enforceable under Statute of Frauds:

  1. An agreement that by it’s terms is not to be performed within a year from making thereof.
  2. Special promise to answer for the default or miscarriage of another. This is known as guaranty.
  3. An agreement in consideration of marriage other than mutual promise to marry.
  4. Sale of goods, chattels or things in action at a price not less than 500.
  5. An agreement for the leasing of a real property of an interest thereon for more than one year.
  6. Sale of real property or interest thereon regardless of price.
  7. A representation as to credit of a third person.
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About PAM Academy Founder

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.
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