Group 7_Chapter 9: Void or Inexistent Contracts

Give atleast three exceptions to the Labor code.

1. Government employees 2. Managerial employees 3. Field personnel 4. Members of the family of the employers who are dependent upon him for support 5. Domestic helpers 6. Persons in the personal service of another 7. Workers who are paid by results

What are the requisites for recovering the money from contracts entered into for illegal purposes?

1. The contract is for an illegal purpose. 2. The contract is repudiated before the purpose has been accomplished or before any damage has been caused to a third person. 3. The court considers that public interest will be subserved by allowing recovery.

What is the distinguishment between Divisible Contracts and Divisible Obligations?

Divisible Contract- refers to the cause of contract. Divisible Obligation- refers to the prestation or object.

TRUE OR FALSE: Any contract, even void can give rise to another valid contract.

FALSE.

TRUE OR FALSE: Void contracts can be ratified.

FALSE.

Usurious interest even if not paid, can be recovered together with the whole interest paid from the date of payment in civil action.

FALSE. Only usurious interests that are paid can be recovered.

TRUE OR FALSE: The action or defense for the declaration of void contract's inexistence prescribe in 2 years.

FALSE. They don't prescribe.

What is inexistent contract?

It refers to an agreement which lack one or some or all of the elements or do not comply with formalities which are essential for the existence of a contract.

According to Article 1415 for recovery by an incapacitated person, recovery is allowed only if?

One of the parties is incapacitated and interest of justice so demands.

A person who brings a legal action against another

Plaintiff

Sets forth that the normal hours of work of any employee shall not exceed eight hours a day.

Presidential Decree No. 442 or The Labor Code

A statute fixing the maximum price of any article or commodity is usually known as___

Price Ceiling

TRUE OR FALSE: Void contracts are considered as inexistent from its inception or from the very beginning.

TRUE

TRUE OR FALSE: Void contracts produce no force and effect whatsoever.

TRUE

TRUE OR FALSE: The defense of illegality for void contracts is not available to third persons whose interests are not directly affected

TRUE.

For indivisible contracts, if one part of consideration is illegal, what will happen to the whole contract?

The whole contract is void and unenforceable.

What is void contract?

Those which, because of certain defects, generally produce no effect at all.

Any rate of interest in the excess of maximum allowed under the Usury Law.

Usurious Interest