Article 1403 to 1408

A special promise to answer for the debt, default, or miscarriage of another person (contracts of guarantees or sureties) must be in writing. The law generally makes no distinction between guarantees and sureties in this context, emphasizing the need for written form for enforceability.

Agreements made in consideration of marriage, other than a mutual promise to marry, must be in writing to be enforceable. These often involve antenuptial agreements or other promises related to marriage, which may also have implications for donor's taxes.

The Statute of Frauds, as outlined in Article 1403, is applicable only to executory contracts. An executory contract is one where parties have not yet performed their agreed-upon obligations. Once one party begins to carry out their part, the contract becomes partially executed, removing it from the ambit of the Statute of Frauds. Even a minimal act, like a one-peso down payment, makes a contract partially executed and thus enforceable, regardless of being oral.

The Statute of Frauds exists to prevent fraud and rely on the unreliable memories of contracting parties, especially in cases where a significant amount of time (e.g., 10 years) has passed without performance. It requires certain contracts to be in writing to ensure clarity and enforceability, preventing disputes over oral agreements.

An agreement that, by its terms, is not to be performed within a year from its making must be in writing to be enforceable. This applies to obligations with a resolutory period where performance is expected after a year, such as lease options prohibiting sales within the first year. Without a written document, such agreements are unenforceable.

Contracts for the sale of goods, chattels, or things in action for a price not less than 500 pesos must be in writing. If the value is below 500 pesos, a written agreement is not strictly necessary for enforceability.

Agreements for the leasing of property for a period longer than one year, or for the sale of real property or an interest therein, must be in writing. This applies regardless of the price of the real property, emphasizing the importance of written documentation for land transactions.

A representation as to the credit of a third person must be in writing. This is particularly relevant when an individual makes a representation about another's creditworthiness to facilitate a loan or financial transaction, such as with a bank.

Contracts infringing the Statute of Frauds (Article 1403, paragraph 2) can be ratified. Ratification can occur by: 1) failure to object to the presentation of oral evidence to prove the contract, or 2) acceptance of benefits under the contract. Acceptance of benefits makes the contract partially executed, rendering the Statute of Frauds inapplicable.

Contracts where both parties are incapable of giving consent (e.g., a contract between a minor and a mentally insane person) are unenforceable, though still valid. Either party may later bring an action to challenge its validity. If only one party is incapacitated, the contract is merely voidable.

Unenforceable contracts generally cannot be assailed by third persons; only the contracting parties can challenge their validity. For example, if a third-person bank (mortgagee) was not a party to an unwritten property sale, it cannot directly assail the sale's validity, even if it has an interest in the property. The bank's consent for a sale with mortgage assumption would be crucial for its involvement.