Obligations and Contracts
Persons Incapacitated to Give Consent
Under the law, the following cannot give consent to a contract:
- Unemancipated minors
- Insane or demented persons, unless the contract was entered into during a lucid interval
- Deaf-mutes who do not know how to write. Being a deaf-mute alone does not disqualify capacity to give consent; the inability to write is key
- Those in a state of drunkenness or under a hypnotic spell are considered equivalent to temporary insanity, making the contract voidable
- Other incapacitated persons include married women of age in cases specified by law, persons suffering from civil interdiction, and incompetents under guardianship
Effect on Contracts
The status of a contract depends on who is incapacitated:
- If only one party is incapacitated to give consent, the contract is voidable. Voidable contracts are binding unless annulled by a proper court action and are susceptible of ratification
- If both parties are incapable of giving consent, the contract is unenforceable. These contracts cannot be sued upon or enforced unless ratified. Ratification can be done by the parents or guardians, or by the parties themselves upon attaining or regaining capacity
Capacity Presumed
Capacity to give consent is the general rule, presumed to exist unless denied by law. The burden of proving incapacity is on the party asserting it. Advanced age or physical infirmities alone do not necessarily cause incapacity, unless they impair mental faculties to prevent proper understanding of the contract.
Distinction from Disqualification
Incapacity to give consent is different from disqualification to contract. Incapacity restrains the exercise of the right, allowing contracting through a representative, while disqualification restrains the right itself based on public policy or morality, making the person absolutely disqualified from a particular contract. Contracts by incapacitated persons are voidable, while those by disqualified persons are void.
Incapacity in Payment
For a payment to be valid, the person making it must have the necessary legal capacity, including the free disposal of the thing due and capacity to alienate it. Payment by an incapacitated person is generally not valid unless beneficial to the creditor or covered by an exception.
Incapacity in Deposit
If a depositor was incapacitated, the thing deposited must be returned to their representative or when they regain capacity. An incapacitated depositary is liable to return the thing in possession or the amount benefited from it.
The incapacity declared in the law is subject to modifications and special disqualifications.