Who are disqualified to enter into a contract?

A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.[1] The following are disqualified to enter into a contract:

a. Those who are under civil interdiction for transactions inter vivos[2];

b. Undischarged insolvents[3];

c. Husband and wife cannot donate to each other [4], nor sell to each other if the marriage is under the regime of Absolute Community of Property [5]; and

d. The following persons cannot acquire by purchase, even at a public or judicial auction, either in person or through the mediation of another:[6] 

(1) The guardian, the property of the person or persons who may be under his guardianship; 

(2) Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the principal has been given; 

(3) Executors and administrators, the property of the estate under administration; 

(4) Public officers and employees, the property of the State or of any subdivision thereof, or of any government-owned or -controlled corporation, or institution, the administration of which has been intrusted to them; this provision shall apply to judges and government experts who, in any manner whatsoever take part in the sale

(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other offi cers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions; this prohibition includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession; 

(6) Any others specially disqualified by law.


[1] Article 1305, Civil Code.

[2] Article 34, Revised Penal Code.

[3] Section 24, Insolvency Law.

[4] Article 123, Family Code.

[5] Article 1490, Civil Code.

[6] Article 1491, Civil Code.

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