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  • Failure To Object: ARTICLE 1405

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    Joshua Daarol
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    The document discusses several provisions related to ratification of contracts under Philippine law: 1) Ratification of an oral contract that violates the Statute of Frauds can occur through failure to object to oral evidence presented about the contract or by accepting benefits under the contract. 2) If an otherwise enforceable contract under the Statute of Frauds requires registration, the parties can execute a public document. 3) If both parties to a contract were incapable of consent but one party's parent or guardian ratifies, the contract is valid as if only one party was incapable. Ratification by both parties' parents fully validates the contract. 4) Unenforceable contracts cannot be challenged by third parties

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    The document discusses several provisions related to ratification of contracts under Philippine law: 1) Ratification of an oral contract that violates the Statute of Frauds can occur through failure to object to oral evidence presented about the contract or by accepting benefits under the contract. 2) If an otherwise enforceable contract under the Statute of Frauds requires registration, the parties can execute a public document. 3) If both parties to a contract were incapable of consent but one party's parent or guardian ratifies, the contract is valid as if only one party was incapable. Ratification by both parties' parents fully validates the contract. 4) Unenforceable contracts cannot be challenged by third parties

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    766 views4 pages

    Failure To Object: ARTICLE 1405

    Uploaded by

    Joshua Daarol
    The document discusses several provisions related to ratification of contracts under Philippine law: 1) Ratification of an oral contract that violates the Statute of Frauds can occur through failure to object to oral evidence presented about the contract or by accepting benefits under the contract. 2) If an otherwise enforceable contract under the Statute of Frauds requires registration, the parties can execute a public document. 3) If both parties to a contract were incapable of consent but one party's parent or guardian ratifies, the contract is valid as if only one party was incapable. Ratification by both parties' parents fully validates the contract. 4) Unenforceable contracts cannot be challenged by third parties

    Copyright:

    © All Rights Reserved
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    of 4

    ARTICLE 1405

    Contracts infringing the Statute of frauds, referred to in No. 2, article 1403 are ratified by the
    failure to object to the presentation of oral evidence to prove the same, or by the acceptance of
    benefits under them.

    Ratification can be made in two (2) ways:

     Failure to object to the presentation of oral evidence. This case is equitably the same
    with a waiver. Contracts that are infringed in the Statute of Frauds are ratified by the
    failure to object to the presentation of parol evidence thus, it is enforceable.
    Parol Evidence is any evidences either in the form of writing or oral which are not
    present in the written contract.
    Illustration:
    The plaintiff forwarded a complaint to the defendant/s by which the former was claiming
    back the parcel of land he sold to the defendant/s under a repurchase agreement within
    a specified period. As the term expired, the defendant/s did not adhere to the terms
    though the “repurchase agreement” was not explicitly mentioned in the contract.
    Relative to the cross-examination, the plaintiff mentioned that the said agreement was
    just agreed by the contracting parties verbally. If no objection and opposition were
    made by the at the time when the agreement was made, therefore, the contract to
    repurchase the parcel of land right in the dependant’s possession is enforceable.
     Acceptance of Benefits under these contacts is equivalent to waiver or estoppel; only
    applies to executor contracts. If the oral contract was reduced into writing by the party
    charged, this exercise is called recognition. It is the express ratification of the contract
    since the creditor of the payment of debt (assuming) is being enjoyed already by the
    former in order to satisfy needs an daily important expenses.
    Executory Contract means any stipulation or in written document that relates to the
    transaction made by the contracting parties by which one is bound to give, to do or not
    do on specified date and terms in exchange of economic benefits that the former will
    receive.

    Types of Inclusions of the Contract


    Executory Tenant, Client, Borrower, Landlord, Renter, Contractor
    Contracts Owner
    Rental Lease -Shall give periodic payment on -Shall provide living space or lot
    monthly, semi-monthly or any basis
    Equipment Lease -Shall pay the rate of temporarily -Shall provide the equipments
    using an equipment and return it rented for temporary use by the
    according to terms of condition cutomer.
    Development -Shall pay the contractors by the -Shall provide the service in
    Contract time when the building milestone or fulfilling the building
    blueprint commenced.
    Car lease -Shall pay according to the -shall provide the car.
    dealership

    ARTICLE 1406

    When a contract is enforceable under the Statute of Frauds, and a public document is
    necessary for its registration in the Registry of Deeds, the parties may avail themselves of the
    right under article 1357.

    The above provision is applicable if there are agreement in obedience to the Statutes of Frauds.

    o As general rule, the party involved in a sale of real property made in oral contract
    cannot compel the his or her contracting party to make the contract be in public
    document for the purpose of registration because it is unenforceable, except, it was
    ratified.
    o Same thing applies when one is trying to execute a public document for a “donated”
    realty if it is in private instrument since a donation is void as mentioned from Article
    1356.

    Illustration:

    Miko sold a parcel of land to his friend worth 2,000,000 Php in a private instrument. His
    friend paid the purchase price along with other supplemental cost relative to the transaction
    and document needed for the transfer of title. With this, MIko’s friend has the right to ask Miko
    to execute a public instrument as per the purpose of registration.

    ARTICLE 1407
    In a contract where both parties are incapable of giving consent, express or implied ratification
    by the parent, or guardian, as the case may be, of one of the contracting parties shall give the
    contract the same effect as if only one of them were incapacitated.

    If ratification is made by the parents or guardians, as the case may be, of both contracting
    parties, the contract shall be validated from the inception.

     If only one parent of the contracting parties (assuming both were incapacitated) decided
    to lead the ratification of the contract, there was still a chance that it would become
    voidable if one of the parties involved in the contract regained his or her capacity.

    One can regain capacity in the form of/when: the party reached legal age thus regained
    capacity from being minor and regaining insanity from being insane before.

     If there is a circumstance where both incapacitated parties involved in the contract


    become capacitated, the orientation of the contract (how each other should treat the
    contract) shall automatically get back to the start from the moment when the
    perfection of the contracts had been confirmed. With this, the chances of vitiating the
    consent of both once-incapacitated parties will now be abolished therefore, the original
    agreement occurred in between the parties shall prevail and become valid.

    ARTICLE 1408

    Unenforceable contracts cannot be assailed by third persons.

     Whether a situation shows a validity or unenforceability of the contract involving,


    assuming, two (2) contracting parties, strangers or people who were not related to or
    have nothing to do with the contract shall not be allowed to make use of the
    Statutes of Frauds.
     Both share the same degree. If a contract is valid, obviously, the stranger cannot
    question the binding force of it. If it is unenforceable, same thing applies. Though, the
    stranger uses the statutes as a form of defense, he or she will not be recognized by the
    court.

    Illustration:
    Mendoza sells a treadmill worth 500,00 Php to Lazada and the transaction was made orally.
    Shoppee made a written contract for the performance of Lazada which is to pay the purchase
    price of the equipment.

    1) If Mendoza would like to recover the purchase price, Shoppee cannot question or assail
    the contract between Mendoza and Lazada though the contract mentioned earlier is
    unenforceable as provided by the Statutes of Frauds since Shoppee is s stranger to the
    agreement initially made.
    2) Even if Lazada ejected Shoppee out of the contract, still the latter was not entitled to
    Statutes of Frauds to make use of it as a defense.
    3) If Shoppee induces Mendoza to avoid the sale transaction of Mendoza and Lazada then
    Mendoza got exposed to other client to proceed with the sell the treadmill, the former
    shall pay the indemnity for the damages suffered by Lazada. Shoppee cannot use the
    Statutes of Frauds as an excuse to pay for damages.

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