Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES-BATAAN BRANCH
Mariveles, Bataan
BUSINESS LAW (OBLIGATIONS AND CONTRACTS)
LAW 20053
Module # 11
Overview
This module continues the discussion on kinds of Defective Contracts,
particularly Unenforceable Contracts and Void or Inexistent Contracts.
Moreover, Natural Obligations are also discussed in this module.
Module Objective
At the end of this module, you are expected to:
1. Define Unenforceable Contracts, its nature and effects;
2. Understand the Statute of Frauds;
3. Define Void or Inexistet Contracts, its nature and effects; and
4. Define Natural Obligations, its nature effects, and give examples
thereof.
Reading Assignment
Kinds of Defective Contracts
Unenforceable Contracts (Art. 1403-1408)
Void or Inexistent Contracts (Art. 1409-1422)
Natural Obligations (Art. 1423-1430)
Pages 444-481, Recommended Book
Questionnaire
Define. (5 pts)
1. Unenforceable Contract
2. Unauthorized Contracts
3. Statute of Frauds
4. Void Contracts
5. Natural Obligation
Enumerate. (25 pts.)
1. Kinds of Unenforceable Contract. (3 pts.)
2. Agreements within the scope of Statute of Frauds. (7 pts.)
3. Modes of Ratification under the Statute of Fruads. (2 pts.)
4. Characteristics of a void or inexistent contract. (6 pts.)
5. Two (2) differences between a Civil Obligation and a Natural
Obligation. (2 pts.)
6. Five (5) kinds of Void or Inexistent Contract. (5 pts.)
Essay. (20 pts.)
1. What is the purpose of Statute of Frauds? Give a concrete example of
an agreement under the scope of Statute of Frauds and explain the
advantage of the requirement of the Statute of Frauds. (10 pts.)
2. A and B entered an absolutely simulated contract of sale of a parcel of
land. C, the heir of A, brought an action in court for the recovery of the
ownership of the same parcel of land only 15 years after the death of A.
B opposed the action of C. Can A still recover the parcel of land from
B? (5 pts.)
3. Anna sued Becka for a non-payment of debt way back 10 years ago.
Considering that the action has long prescribed, Becka won. However,
after 1 year from the finality of the decision, Becka still paid the amount
to cleanse her conscience. Becka, realizing that her conscience need
now reformation, then asks Anna to give her money back. Anna
refused. Can Becka get her money back from Anna? Explain. (5 pts.)
