Dear PAO,
I applied for the services of a company and I was forced to sign an agreement stating that I will pay for the arrears of my grandmother, otherwise they will not process my application. I just noticed that the agreement is addressed to my grandmother. Does this mean that the agreement is null and void? I am looking forward for your guidance. Thank you very much and God bless.
Doyle
Dear Doyle,
As a general rule, contracts are binding only between the parties thereof, their assigns and their heirs, except in cases where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law (Article 1311, New Civil Code of the Philippines). Nevertheless, a person may enter into a contractual obligation for or in behalf of another provided that he is authorized by the latter or he has by law a right to represent him (Article 1317, id).
In your letter, you mentioned that you entered into an agreement with a company, undertaking to pay the arrearages of your grandmother. We submit that such an agreement is valid and binding between you and the company as the essential requisites to a valid contract are present, to wit: (1) there is consent among the contracting parties; (2) there is an object certain which is the subject matter of the contract; and (3) there is a cause or consideration for which the obligation is established. Despite the fact that, as you mentioned in your letter, you were forced to sign the agreement as the company will not approve your application should you not settle the arrearages of your grandmother, such a circumstance will not nullify the contract because the truth remains that you gave your consent to the agreement. Even if you equate the force imposed on you as violence, intimidation or undue influence, such will not render the contract void. At most, the contract will only be voidable or valid until annulled by the proper court (Article 1390, id).
Furthermore, the fact that the agreement was addressed to your grandmother does not negate the validity of you contract with the company. It cannot be denied that you obligated yourself to answer for the outstanding obligations of your grandmother. The tenor of your letter also suggests that you knew the consequences of the actions you have taken. Hence, you are expected to comply with what is incumbent upon you. And as long as there is no proof that your contract is one of those considered as void contracts under Article 1409 of the New Civil Code of the Philippines, your contract will remain to be considered valid and binding.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to
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