Page 60 - Obligations & Contracts Module 1-2

3. UNENFORCEABLE CONTRACT – valid but cannot compel its execution unless ratified;

extrinsic defect; produce legal effects only after ratified

KINDS/VARIETIES OF UNENFORCEABLE CONTRACT :

1. Unauthorized/No sufficient authority – entered into in the name of another when:

a. no authority conferred

b. in excess of authority conferred ( ultra vires )

*Note: Curable by RATIFICATION/APPROVAL

2. Both parties incapable of giving consent - 2 minors or 2 insane persons

*Note: Curable by ACKNOWLEDGEMENT

3. Failure to comply with Statute of Frauds

a. Agreement to be performed within a year after making contract

b. Special promise to answer for debt, default or miscarriage of another

c. Agreement made in consideration of promise to marry

d. Agreement for sale of goods, chattels or things in action at price not less than 500;

exception: auction when recorded sale in sales book

e. Agreement for lease of property for more than 1 year & sale of real property

regardless of price

f. Representation as to credit of another

*2 WAYS OF CURING UNENFORCEABLE CONTRACTS:

1. Failure of defendant to object in time, to the presentation of parole evidence in court, the

defect of unenforceability is cured