Void or Inexistent Contracts

One which has no force or effect from the very beginning.

Characteristics of Void or Inexistent Contracts;

  1. Cannot be ratified.
  2. Set up defense of illegality cannot be waived.
  3. Action or defense for the declaration of the inexistence of a contract does not prescribe.
  4. The defense of illegality of contracts is not available to third persons whose interest are not directly affected.
  5. Void and inexistent as a direct result of previous illegal contract.

Void Ab Initio;

a. Cause, object, or purpose is contrary to law, morals, good customs, public order or public policy.

b. Object or cause did not exist at time of transaction.

c. Simulated or Fictitious Contract.

d. Outside commerce of men.

g. Impossible service.

e. Intention of parties relative to the principal object.

f. Expressly prohibited or declared by Law.

 

 

 

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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.
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