Capacity to Act | PERSONS

Topic: Capacity to Act under Philippine Civil Law


I. Overview of Capacity to Act

In the context of Philippine civil law, "capacity to act" refers to the legal ability of a person to enter into binding agreements, exercise rights, and fulfill duties without the need for representation. The Civil Code of the Philippines (Republic Act No. 386) outlines the principles governing who has the legal competence to perform acts with legal effect.

The Capacity to Act is different from Civil Personality, which is the inherent ability to have rights and obligations. Civil personality starts at birth and ceases upon death, while the capacity to act may vary based on a person’s status, age, mental capacity, and legal restrictions.

The general rule is that all natural persons have capacity to act unless the law provides otherwise. Legal restrictions on capacity to act exist primarily to protect certain persons, particularly minors, those with mental disabilities, and individuals under guardianship.


II. Categories of Capacity to Act

  1. Full Capacity to Act

    • An individual has full capacity to act when they can exercise all rights and duties without any legal impediments or the need for representation.
    • Criteria: Attained majority (generally 18 years old or older), no mental disability or other restrictions imposed by law.
    • Examples: A person of legal age who is not under guardianship or interdiction can enter into contracts, sign legal documents, and initiate or respond to lawsuits on their own.
  2. Limited Capacity to Act

    • Some individuals have only limited capacity to act due to legal restrictions or mental or physical conditions that affect their ability to make decisions.
    • Criteria: Minors, persons with mental disabilities, individuals declared incompetent by a court, or those under guardianship may have restricted capacity.
    • Effect: Limited capacity generally requires representation (such as a parent, guardian, or legal representative) for legal acts to be binding.
  3. Incapacity to Act

    • Persons who are legally considered incapacitated cannot perform any act with legal effect on their own.
    • Criteria: This includes minors under seven, insane or mentally incapacitated persons, and individuals judicially declared incompetent.
    • Effect: Actions taken without proper representation or authorization are generally void and without effect.

III. Legal Restrictions on Capacity to Act

The Civil Code of the Philippines specifies categories of persons whose capacity to act is legally restricted:

  1. Minors (Persons Below 18)

    • By general rule, minors are considered to have limited capacity to act. Contracts entered into by minors are voidable and may be annulled unless ratified upon reaching the age of majority.
    • Exceptions: Emancipated minors (e.g., those who are married or who have been granted emancipation by court order) may have limited or full capacity to act, depending on the circumstances.
  2. Insane or Mentally Incapacitated Persons

    • Persons declared insane or mentally incapacitated by court are presumed to have no capacity to act and require a guardian or legal representative to make legally binding decisions on their behalf.
    • Contracts: Acts or contracts entered into by such individuals may be void or voidable depending on the severity and nature of the incapacity.
  3. Persons Under Guardianship

    • Individuals under guardianship, regardless of the reason (e.g., age, mental condition, or physical disability), generally lack capacity to act in legal transactions, as the guardian is given authority to act on their behalf.
  4. Incompetent Persons

    • An individual declared "incompetent" by a court order due to age, mental condition, prodigality, or other circumstances is legally prevented from engaging in most legal acts. Any transactions they attempt to enter into may require ratification by their guardian or the court.

IV. Legal Protections for Persons with Limited Capacity

The Civil Code provides several protections for those with limited capacity to act, as follows:

  1. Voidable Contracts

    • Contracts entered into by minors or incapacitated persons without the necessary consent of a guardian or representative are generally voidable, meaning they can be annulled or ratified upon reaching the age of majority or if incapacity is removed.
  2. Annulment and Rescission

    • Annulment: The legal process for nullifying a contract due to incapacity at the time of contracting.
    • Rescission: Allows an incapacitated individual or their representative to cancel a contract if it is found detrimental to the incapacitated person.
  3. Representation by Guardians

    • When a person lacks the legal capacity to act, a guardian may be appointed to represent their interests, thus ensuring that decisions are made with the person’s welfare in mind. Guardians must act in the best interest of their ward, with the court monitoring the guardianship.
  4. Parental Authority

    • Parents have the authority to represent and make decisions on behalf of their minor children. This authority extends to legal actions, contracts, and other civil matters necessary for the child’s welfare.
  5. Emancipation

    • Emancipation grants limited capacity to act to minors who are married or legally emancipated. Emancipated minors may enter into certain contracts and be responsible for their own actions, though restrictions still apply to protect them from potential exploitation.

V. Special Cases and Exceptions

  1. Married Minors

    • Minors who marry before reaching 18 are considered emancipated and generally have more autonomy in legal actions. However, they may still have limited capacity in certain situations and may require parental or judicial intervention in significant transactions.
  2. Persons with Prodigality

    • In cases of prodigality (excessive wastefulness that endangers the person’s estate or family’s welfare), the court may appoint a guardian to manage the individual’s financial affairs, restricting their capacity to act in property transactions.
  3. Judicial Declaration of Incompetency

    • A formal court proceeding may declare a person incompetent due to mental illness, senility, or other debilitating conditions, appointing a guardian to manage the individual's legal and financial matters.
  4. Ratification of Contracts

    • A minor or incapacitated person can ratify a contract upon reaching the age of majority or upon regaining capacity. This ratification makes the contract valid as though the person had capacity from the beginning.

VI. Relevant Articles in the Civil Code

Several articles in the Civil Code govern the capacity to act:

  • Article 37-41: Defines the distinctions between civil personality and capacity to act.
  • Article 1327: Specifies that minors, insane persons, and demented persons, and deaf-mutes who do not know how to write, are incapable of giving consent to a contract.
  • Article 1390-1391: Outlines the conditions under which contracts entered into by incapacitated persons are voidable.
  • Article 1489: Emancipated minors have the capacity to act for purposes like marriage but remain restricted in certain transactions.

VII. Conclusion

The concept of Capacity to Act under Philippine civil law aims to ensure that individuals engaging in legal acts do so with understanding and consent. Through various legal measures, the Civil Code protects vulnerable groups (such as minors and mentally incapacitated persons) while permitting the exercise of rights as soon as an individual can responsibly manage their affairs.