Engineering Board Exam Reviewer · ECE · hard

An ECE contractor agreed in writing to install a fiber network for a subdivision. Before work began, the developer discovered that the contractor's representative had lied about having NTC-type-approved equipment, which was the main reason the developer signed. What is the status of the contract?

1. Void from the beginning
2. Valid; the developer can only ask for a discount
3. Voidable due to causal fraud; the developer may sue for annulment
4. Unenforceable because it is not notarized

Answer

C. Voidable due to causal fraud; the developer may sue for annulment

Solution

Causal fraud vitiates consent, making the contract voidable (Arts. 1330, 1338).

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