Articles 1380 1422
CHAPTER 6
RESCISSIBLE CONTRACTS
Article 1380
Contracts validly agreed upon may be rescinded in the cases established by law.
Rescissible contracts
Those validly agreed upon because all the essential elements exist and, therefore, legally effective, but in the cases established by law, the remedy of rescission is granted in the interest of equity.
They are valid and enforceable although subject to rescission by the court when there is economic damage or prejudice to one of the parties or to a third person.
Rescission
Remedy granted by law to the contracting parties and sometimes even to third persons in order to secure reparation of damages caused them by a valid contract, by means of the restoration of things to their condition in which they were prior to the celebration of said contract.
Requisites:
1. Contract must be validly agreed upon;
2. Lesion or pecuniary prejudice to one of the parties or to a third person;
3. Based upon a case especially provided by law (Arts. 1380-1382);
4. No other legal remedy to obtain reparation for the damage (Art. 1383);
5. Party asking for rescission must be able to return what he is obliged to restore by reason of the contract (Art. 1385[1]);
6. Object of the contract must not legally be in the possession of third persons who did not act in bad faith (Art. 1385[2]);
7. Period for filing the action must not have prescribed (i.e., four [4] years) (Art. 1389).
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Article 1381
The following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof;
(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number;
(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them;
(4) Those which refer to things under litigation if they
RESCISSIBLE CONTRACTS
Article 1380
Contracts validly agreed upon may be rescinded in the cases established by law.
Rescissible contracts
Those validly agreed upon because all the essential elements exist and, therefore, legally effective, but in the cases established by law, the remedy of rescission is granted in the interest of equity.
They are valid and enforceable although subject to rescission by the court when there is economic damage or prejudice to one of the parties or to a third person.
Rescission
Remedy granted by law to the contracting parties and sometimes even to third persons in order to secure reparation of damages caused them by a valid contract, by means of the restoration of things to their condition in which they were prior to the celebration of said contract.
Requisites:
1. Contract must be validly agreed upon;
2. Lesion or pecuniary prejudice to one of the parties or to a third person;
3. Based upon a case especially provided by law (Arts. 1380-1382);
4. No other legal remedy to obtain reparation for the damage (Art. 1383);
5. Party asking for rescission must be able to return what he is obliged to restore by reason of the contract (Art. 1385[1]);
6. Object of the contract must not legally be in the possession of third persons who did not act in bad faith (Art. 1385[2]);
7. Period for filing the action must not have prescribed (i.e., four [4] years) (Art. 1389).
______________________________________________
Article 1381
The following contracts are rescissible:
(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof;
(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number;
(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them;
(4) Those which refer to things under litigation if they