Restrictions on capacity to act | PERSONS

In Philippine Civil Law, particularly under CIVIL LAW > II. PERSONS > C. Restrictions on Capacity to Act, understanding the concept of capacity to act is crucial as it defines the ability of a person to enter into binding agreements, exercise rights, and incur obligations. This capacity is not absolute for everyone, as the law places certain restrictions on certain individuals due to various reasons that might impair their decision-making abilities. These restrictions are intended to protect those who may not be able to protect their own interests adequately.

Key Definitions

1. Natural Persons vs. Juridical Persons

   • Natural Persons: These are human beings from birth, possessing rights and obligations.
   • Juridical Persons: These include entities like corporations, partnerships, and associations granted personality by law.

   The law focuses primarily on natural persons regarding restrictions on capacity to act, although juridical persons may also have limited capacities in specific cases.

2. Capacity to Act: Capacity to act refers to the power to perform acts with legal effects. This includes the power to enter into contracts, acquire and exercise rights, and incur obligations. However, the law acknowledges that not all individuals possess full capacity.

3. Capacity vs. Incapacity

   • Capacity: The rule is that all persons are generally presumed to have capacity unless proven otherwise.
   • Incapacity: Incapacity is an exception, and restrictions on capacity are imposed only by law. Incapacity may be absolute or relative.

General Principles

The Civil Code of the Philippines governs the restrictions on capacity to act in the context of personal and patrimonial rights, family relations, and obligations. Several factors affect the extent of an individual’s capacity to act. These factors include age, mental condition, civil status, and specific legal prohibitions.

Categories of Restricted Persons

1. Minors (Those Under Legal Age):

   • Under Article 1327, persons who are minors (below 18 years) are considered legally incapacitated to act in most civil transactions, especially contracts.
   • Contracts entered into by minors are generally voidable (Article 1390) unless the contract involves necessaries, in which case, it is enforceable to the extent of the reasonable value of the necessaries provided (Article 1489).
   • Emancipation through marriage (as per Article 234) can grant limited capacity to a minor in the context of civil obligations, but such capacity is conditional.

2. Persons of Unsound Mind:

   • Individuals with mental incapacity, due to illness or intellectual disability, lack the capacity to act. Under Article 1327, contracts entered into by persons of unsound mind are voidable. A judicial declaration of incompetence is not strictly required, but it strengthens claims of incapacity.
   • Guardianship may be necessary to act on behalf of a person of unsound mind, especially in cases involving patrimonial rights or court proceedings.

3. Prodigals and Habitual Drunkards:

   • Under Article 37 of the Family Code and in line with the Rules of Court on guardianship, prodigals or individuals who habitually squander property, as well as habitual drunkards, may have restricted capacity. Such restrictions require a court declaration.
   • A court may appoint a guardian to administer their property, thus restricting their capacity to independently handle patrimonial matters.

4. Civil Interdiction:

   • Civil interdiction is a penalty imposed upon a person as part of a criminal sentence, depriving them of rights to exercise parental authority, manage property, and enter into contracts.
   • Under Article 41 of the Civil Code, civil interdiction does not affect personal civil rights like the right to marry or recognize natural children. However, a guardian may be appointed for the interdicted individual.

5. Married Women (Historical Context):

   • Previously, married women in the Philippines faced restrictions under the old Civil Code, which limited their capacity to act independently. However, with the enactment of the Family Code, these restrictions have been lifted, allowing married women full capacity to act autonomously in all civil matters.

6. Persons Convicted of Crimes:

   • A conviction for certain crimes may entail restrictions on capacity to act, especially if the person is imprisoned. This incapacity primarily affects patrimonial rights and requires a representative to manage property or undertake legal actions on the individual’s behalf.

7. Persons Under Certain Guardianship Arrangements:

   • Individuals subject to legal guardianship, whether minors or persons with disabilities, may also have restricted capacity. Guardians are appointed to protect the interests of those who cannot manage their own affairs. Guardians must act in the best interest of the ward and are accountable to the court.

8. Alien Enemies:

   • In times of war, nationals of an enemy state may have restricted capacity to enter into certain contracts or exercise civil rights, particularly those with potential effects on national security or public interest. This restriction, although seldom invoked, aligns with national defense policies.

Types of Restrictions on Capacity

1. Absolute Incapacity:

   • Absolute incapacity means that the person cannot enter into any binding civil obligations. Examples include minors and persons declared judicially incompetent. Acts performed by these individuals are generally void.

2. Relative Incapacity:

   • Relative incapacity implies that the individual’s restriction applies only in certain situations or with specific persons. An example is a minor’s capacity to contract for necessaries. Another example is prohibitions on donations between spouses (Articles 87 and 1332 of the Family Code).

Legal Provisions and Relevant Articles in the Civil Code

1. Articles 1327 to 1332: These outline the general rules on capacity, defining incapacity and providing exceptions.
2. Articles 1390 to 1391: Voidable contracts due to lack of capacity.
3. Articles 234 to 237 (Family Code): Emancipation and other capacities granted to minors in special circumstances.
4. Articles 87 and 87 (Family Code): Restrictions on donation and other transactions between spouses.
5. Rules of Court (Guardianship Proceedings): Governs the judicial procedures for appointing guardians over incapacitated individuals.

Judicial Interventions and Remedies

1. Annulment of Contracts: Contracts entered into by individuals with incapacity (e.g., minors or those of unsound mind) are voidable, not void, and can be annulled upon reaching the age of majority or upon declaration of unsoundness.
2. Guardianship Proceedings: For individuals who cannot manage their own affairs due to incapacity, the court may appoint a guardian to represent their interests.
3. Judicial Declaration of Incapacity: A court may declare an individual incapacitated based on sufficient evidence, usually on petition by a relative or interested party.

Conclusion

Restrictions on capacity to act are designed to protect those who cannot fully protect their own interests due to age, mental condition, or specific legal prohibitions. The Civil Code, along with the Family Code and Rules of Court, provides the legal framework to determine and enforce these restrictions, balancing individual rights with protective oversight.