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RESCISSIBLE
CONTRACTS
CHAPTER 6
MAY 2021
AMOR, ALEXANDRA ANABE
Article 1380 - 1383
DOCTOLERO, DARWIN
Article 1387 - 1389
BARRA, NICOLE
Article 1384 - 1386
RESCISSIBLE CONTRACTS Article 1380 - 1383 WHAT IS RESCISSION? 01 ARTICLE 1380^ 02 CASES OF RESCISSIBLE CONTRACTS ARTICLE 1381 03 PAYMENTS MADE IN A STATE OF INSOLVENCY ARTICLE 1382 04 NATURE OF ACTION FOR RESCISSION ARTICLE 1383
DEFINITION OF TERMS
ARE 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.
RESCISSIBLE CONTRACTS RESCISSION
IS A REMEDY GRANTED BY LAW TO THE CONTRACTING PARTIES AND SOMETIMES EVEN TO
THIRD PERSON 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.
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;
(1) Contracts entered into in behalf of ward. Ambo is the guardian of Buknoy, a minor. Ambo sold the₱2 million worth property of Buknoy for only ₱1 million. EXAMPLES: Buknoy Subject Property
(1) Contracts entered into in behalf of ward The lesion or damage or injury to Buknoy is more than one- fourth, hence Buknoy can rescind the sale by proper action in court upon reaching the age of majority.
However, if the lesion is not more than one-fourth then the sale cannot be rescinded.
EXAMPLES: Buknoy Subject Property
Requisites : (a)There must be an existing credit prior to the contract to be rescinded, although it is not yet due or demandable; (b)There must be fraud on the part of the debtor which maybe presumed or proved (see Art.1387.); and (c)The creditor cannot recover his credit in any other manner, it not being required that the debtor be insolvent. EXAMPLES: (3) Contracts undertaken in fraud of creditors.
EXAMPLES: (3) Contracts undertaken in fraud of creditors. Dodong owes Elai ₱ 7,000,. Dodong Elai
EXAMPLES: ( 3 ) Contracts undertaken in fraud of creditors. Elai may rescind the contract between Dodong and Faustino, being rescissible contract. However, if there is another property or supposedly Dodong has money then Elai can run after the money instead of the property.
EXAMPLES: (4) Contracts which refer to things under litigation. Gino files a case against Hera for the recovery of a phone. Pending the case, Hera sold the said phone to Isaac without the approval of Gino and the court Gino Hera Subject In Litigation
EXAMPLES: (5) Other instances. Some of the specific contracts subject to rescission. "A partition, judicial or extrajudicial, may also be rescinded on account of lesion, when any one of the co[-] heirs received things whose value is less by at least one-fourth than the share to which he is entitled, considering the value of the thing at the time they were adjudicated." (Art. 1098 .) ( see also Arts. 1526 , 1534 , 1542 , 1556 , 1560 , 1567 , 1599 .) See also Articles 1189 , No. 4 , 1191 , and 1382
Jacob and Kevin inherited a house and one carabao from their deceased grandfather.
During the partition, the House goes to Kevin and the carabao to Jacob. Jacob is entitled
the remedy of rescission on account of lesion because the value of the thing he received
was less of more than one fourth than the share he is entitled.
EXAMPLES: (5) Other instances. Some of the specific contracts subject to rescission. " If the lessor or the lessee should not comply with the obligations set forth in Article 1654 ( referring to obligations of the lessor) and Article 1657 (referring to obligations of the lessee), the aggrieved party may ask for the rescission of the contract and indemnification for damages, or only the latter, allowing the contract to remain in force." (Art. 1659 .)
Leo (the lessor) or Markus (the lessee) failed or should not comply with his obligations set
forth in Article 1654 and Article 1657 , the aggrieved party may ask for the rescission of the
contract and indemnification for damages, or only the latter, allowing the contract to remain
in force.
ARTICLE 1382. Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible. Requisites: (1) Debtor paid in a state of insolvency (2)Obligation is not yet due and demandable
EXAMPLE: ARTICLE 1382. Neo owed ₱ 1 million to Oscar. Neo has become insolvent , and while insolvent he paid the amount before the obligation becomes due and demandable. The two requisites for rescissible payment enumerated under Art. 1382 are present, hence Neo's payment is rescissible.
