Source: https://www.plazolaw.com/civil-law/the-philippine-statute-of-frauds-perfected-contracts/
Timestamp: 2019-04-21 01:06:14+00:00

Document:
In the Philippines- when something isn’t in writing- it often isn’t honored. Indeed locals, unlike the Japanese, tend to devalue their word. Now here’s the shocker: the law tells a very different thing.
From the legal perspective, a contract is deemed perfected or given force when the components of consent, object and consideration are present. When a seller offers to sell goods at an offer price plus a buyer agrees to the cost, there’s a perfected contract of sale. But, the consummation of a contract is already considered absolute in the sense of consensual contracts – those that no longer requisite the procurement of special forms to be valid and enforceable. Enforceability means the party can bring the case to any competent court of justice to make certain the other party’s performance of the duty.
Some contracts don’t achieve enforceability unless they’re in writing, along with the three components mentioned previously. All these are covered by the Statute of Frauds.
6. A representation regarding the credit of a third person.
Contracts not covered above are considered perfected and absolute upon the meeting of the minds.
Again, in order that contracts entered into via the 6 ways aforementioned may be enforceable, they need to be in written form and subscribed by the party charged. Subscription by the latter’s representative is satisfactory. It should be noted however, that the unenforceability employs only to executory contracts. By executory, this means that either of the party is yet to perform his duties to the contract. If by any means one party has already rendered or carried through his portion of the duty, then the other party has to officially perform his portion of the duty, the deficiency in the understanding (i.e. only in oral form) however.
Let’s take a case. On June 1, 2015, Dan and Paulo entered into an arrangement whereby Dan, being an fish vendor, sell Paulo fish on June 9 2015. The deal was only verbal and neither a note nor an acceptance letter was performed. Come June 9 2015, Paulo couldn’t bring an action for performance against John should the latter refuse due to the deficiency in the type of the contract.
But if Dan has already received payment from Paulo, he’s bound to sell fish.
Think like a Japanese. Once you give your word, and both parties agree, the contract is deemed enforceable even not in writing- unless the value of the transaction exceeds P500 and partial fulfillment had not been rendered.
Art. 1405. Contracts infringing the Statute of Frauds, referred to in No. 2 of Article 1403, are ratified by the failure to object to the presentation of oral evidence to prove the same, or by the acceptance of benefit under them.
Art. 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.
Art. 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.
Art. 1408. Unenforceable contracts cannot be assailed by third persons.
Art. 1411. When the nullity proceeds from the illegality of the cause or object of the contract, and the act constitutes a criminal offense, both parties being in pari delicto, they shall have no action against each other, and both shall be prosecuted. Moreover, the provisions of the Penal Code relative to the disposal of effects or instruments of a crime shall be applicable to the things or the price of the contract.
Art. 1413. Interest paid in excess of the interest allowed by the usury laws may be recovered by the debtor, with interest thereon from the date of the payment.
Art. 1414. When money is paid or property delivered for an illegal purpose, the contract may be repudiated by one of the parties before the purpose has been accomplished, or before any damage has been caused to a third person. In such case, the courts may, if the public interest will thus be subserved, allow the party repudiating the contract to recover the money or property.
Art. 1415. Where one of the parties to an illegal contract is incapable of giving consent, the courts may, if the interest of justice so demands allow recovery of money or property delivered by the incapacitated person.
Art. 1416. When the agreement is not illegal per se but is merely prohibited, and the prohibition by the law is designated for the protection of the plaintiff, he may, if public policy is thereby enhanced, recover what he has paid or delivered.
Art. 1417. When the price of any article or commodity is determined by statute, or by authority of law, any person paying any amount in excess of the maximum price allowed may recover such excess.
Art. 1418. When the law fixes, or authorizes the fixing of the maximum number of hours of labor, and a contract is entered into whereby a laborer undertakes to work longer than the maximum thus fixed, he may demand additional compensation for service rendered beyond the time limit.
Art. 1420. In case of a divisible contract, if the illegal terms can be separated from the legal ones, the latter may be enforced.
Art. 1421. The defense of illegality of contract is not available to third persons whose interests are not directly affected.
Art. 1422. A contract which is the direct result of a previous illegal contract, is also void and inexistent.

References: Art. 1405

Art. 1406

Art. 1407

Art. 1408

Art. 1411

Art. 1413

Art. 1414

Art. 1415

Art. 1416

Art. 1417

Art. 1418

Art. 1420

Art. 1421

Art. 1422