Contracts without cause, or with unlawful cause, produce no effect whatever. The cause is unlawful if it is contrary to law, morals, good customs, public order or public policy.
Kontrata ng walang kadahilan, o hindi naayon sa batas na dahilan, maaaring magbigay ng walang epekto na kahit ano pa. Ang sanhi ay maaaring hindi naaayos sa batas kung ito sa sumasalungat sa batas, moral, kaugalian, sa ayos ng publiko o sa polisiya ng publiko.
Carantes v. Court of Appeals
Facts: The heirs of a deceased person assigned in 1939 their “Right to Inheritance” in favor of a co-heir in consideration of the sum of P1.00 and in further consideration of the fact that while the deceased was still alive, he had orally expressed that the assignee co heir was actually the rightful owner of the property being assigned to him. It was alleged later, in an action to nullify the assignment, that the deed of assignment was void, there being no consideration therefor, and that the action to have the deed declared void does not prescribe because the deed itself was void.
Issues: Was the contract of assignment valid? Does this kind of action prescribe?
Held:
- The contract of assignment is VALID, there being sufficient consideration therefor-the P1.00 consideration and the fact that the deceased had previously recognized the assignee to be the rightful owner of the property.
- Since the contract is not valid, an action to declare its nullity may prescribe.
- Since the contract is not void, an action to declare its nullity may prescribe.