Philippine Bar review · Question

Practice question: Unenforceable Contracts

Multiple Choice Hard

Practice question

An unauthorized person purports to conclude a contract in Lora’s name without power to bind her. Before the other party revokes, Lora expressly ratifies the transaction. No special validity defect exists. Which treatment follows Articles 1317 and 1403–1404?
  1. The contract can never be ratified because authority was initially absent.
  2. Lora becomes criminally liable merely by ratifying.
  3. The transaction must always be treated as absolutely simulated.
  4. The initial unauthorized-contract unenforceability may be cured by Lora’s timely ratification.
  5. Only the unauthorized actor can supply Lora’s consent after the event.

Legal references

  • https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1317,1356–1358 and 1403–1408.
  • https://lawphil.net/judjuris/juri2023/aug2023/gr_259469_2023.html — Aliguyon v Dummang, GR 259469, August 30 2023, main opinion: Statute of Frauds and partially executed contracts.

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