Article 1409. The following contracts are inexistent and void from the beginning:
(1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy;
(2) Those which are absolutely simulated or fictitious;
(3) Those whose cause or object did not exist at the time of the transaction;
(4) Those whose object is outside the commerce of men;
(5) Those which contemplate an impossible service;
(6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained;
(7) Those expressly prohibited or declared void by law.
These contracts cannot be ratified. Neither can the right to set up the defense of illegality be waived.
By: Kristia Capio
Ang mga sumusunod na kontrata ay walang bisa sa simula’t sapul:
1.) Mga kontrata na ang dahilan, layunin, at intensyon ay labag sa batas, moral, mabuting pamantayan, pampublikong utos o pampublikong patakaran;
2.) Mga kontrata na walang dudang kunwarian or gawa-gawa lamang;
3.) Mga kontrata na may dahilan at layunin na hindi umiiral sa panahon ng transaksiyon;
4.) Mga kontrata na ang layunin ay labas sa komersyo ng sangkatauhan;
5.) Mga kontrata na nagmumungkahi ng imposibleng gawain;
6.) Mga kontrata na kung saan ang intensiyon ng bawat partido tungkol sa pangunahing layunin nito ay hindi matiyak;
7.) Mga kontrata na hayagang ipinagbabawal o dineklarang walang bisa ng batas.
Ang mga kontrata na ito ay hindi maaaring ma-ratify, at ang karapatan na itaguyod ang depensa o pagiging ilegal nito ay hindi matatalikdan.
Inexistent contracts refer to agreements which lack one or some or all of the elements (i.e., consent, object, and cause) or do not comply with the formalities which are essential for the existence of a contract.
CHARACTERISTICS OF A VOID CONTRACTS
They are as follows:
(1) Generally, it produces no effect whatsoever, being void or inexistent from the beginning;
(2) It cannot be cured or validated either by time or ratification;
(3) The right to set up the defense of illegality, inexistence, or absolute nullity cannot be waived;
(4) The action or defense for the declaration of its illegality, inexistence, or absolute nullity does not prescribe;
(5) The defense of illegality, inexistence, or absolute nullity is not available to third persons whose interests are not directly affected;
(6) It cannot give rise to a valid contract; and
(7) Its invalidity can be questioned by anyone affected by it.
VOID AND VOIDABLE CONTRACTS DISTINGUISHED
EXAMPLES
(1) Those whose cause, object or purpose is contrary to law, morals, good customs, public order or public policy;
- Contrary to Law
An agreement whereby Anna is to render service as a servant to Ben without compensation as long as Anna has not paid his debt is reprehensible and censurable.
- Contrary to Morals
A contract, whereby Anna promised to live as the common-law wife of Ben without the benefit of marriage in consideration of P50,000.00, is immoral and, therefore, void.
- Contrary to Good Customs
Anna entered into a contract whereby Anna binds herself to slap his father. This contract is void because it is against the good custom of showing respect to our parents.
- Contrary to Public Order
A stipulation in a contract of lease whereby the landlord can use force to eject the tenant in case of failure of the latter to pay the rent agreed upon is void as being against public order.
- Contrary to Public Policy
A condition in a contract of sale states: “In case of sale, the buyer shall not sell to others the land sold but only to the seller, or to his heirs or successors for the same price of P5,600.00 when the latter shall be able to pay it.’’
The condition is contrary to public policy, because it virtually amounts to a perpetual restriction on the right of ownership, specifically the owner’s right to freely dispose of his property. Such a prohibition indefinite and unlimited as to time, so much so that it shall continue to be applicable even beyond the lifetime of the original parties to the contract is a nullity.
(2) Those which are absolutely simulated or fictitious;
Anna is indebted to Ben. Upon learning that Ben is going to enforce her credit, Anna pretended to sell her land to Felimon, his father-in-law. Anna did not receive a single centavo for the deed of sale she executed and she continued in possession of the land as the contract was merely simulated or fictitious.
There is no contract of sale in this case as the parties do not intend to be bound at all. The sale is but a sham.
(3) Those whose cause or object did not exist at the time of the transaction;
Sandra sells to Ben a parcel of land. In the deed of sale, P100,000.00 is stated as the price of the land. If this statement is false, then there is no contract of sale.
(4) Those whose object is outside the commerce of men;
If the object is outside the commerce of man, such as sidewalks or public plazas or public bridges, they cannot be the object of contracts of alienation (but may be the object, for example, of a contract for repair).
(5) Those which contemplate an impossible service;
If a blind man enters into a contract which requires the use of his eyesight, the contract is void although in this particular case, we have only a relative impossibility. This is because here, the relative impossibility is not merely temporary.
(6) Those where the intention of the parties relative to the principal object of the contract cannot be ascertained;
Anna sold his land to Ben. Anna has many lands. It cannot be determined which land was intended by the parties to be the subject of the sale.
Therefore, the contract shall be null and void and it is as if the parties have not entered into any contract at all.
(7) Those expressly prohibited or declared void by law.
Contracts upon future inheritance except in cases expressly authorized by law.
OBLIGATIONS AND CONTRACTS 