Article 1353

The statement of a false cause in contracts shall render them void, if it should not be proved that they were founded upon another cause which is true and lawful. (1276)

Ang kontrata na  may paghahayag ng walang katotohanang kadahilanan ay gagawarang walang bisa, kung ito ay hindi mapapatunayan na naka-angkla sa isang kadahilanang totoo at naaayon sa batas.

Discussion:

Void contracts cannot be ratified, but based on Article 1353, as long as it can be proven that another cause that is true and lawful supports it, then the contract will still have a valid cause to sustain it.

Article 1353 can also be applied to absolutely simulated contracts that are considered as void contracts.  Again, even if the contract is already void, if it can be established that there is another cause for it which is valid, then the contract is valid.

Case Illustration: Concepcion vs. Sta. Ana (87 Phil. 787)

 

Article 1354

Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the debtor proves the contrary.

Kahit na hindi nakalahad ang dahilan sa kontrata, ito ay papaniwalaang umiiral at legal, maliban lamang kung mapapatunay ng nangutang ang kabaliktaran.

Discussion:

                In the event that the contract does not state its cause, it must be presumed that the cause exists and is lawful. This presumption, though, is rebuttable. If the debtor can prove otherwise, the existence of the cause, or its legality can be questioned.

                This principle is related to Article 1403, par. 2 which states:

   Article 1403. The following contracts are unenforceable, unless they are ratified:

xxx (2) Those that do not comply with the Statute of Frauds as set forth in this number. In the following cases, an agreement hereafter made shall be unenforceable by action, unless the same, or some note or memorandum thereof, or by his agent; evidence, therefore, of the agreement cannot be received without the writing, or a secondary evidence of its contents.. xxx

Hence, Article 1354 applies to contracts which must be evidenced by writing under the Statute of Frauds.

Burden of proof- The person who has the burden of establishing that there was no consideration is the debtor.

Case Illustration: Liam Law vs Olympic Sawmill Co. and Elino lee Chi 129 SCRA 449 (1984)

 

Article 1355

Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a contract, unless there has been fraud, mistake or undue influence.

Maliban sa mga kaso na naisaad sa batas, kakulangan o hindi sapat na dahilan ay hindi nito mapapawalang bisa ang kontrata, maliban kung may panloloko, pagkakamali o hindi angkop na impluwensya.

*The effect of lesion or inadequacy of cause when it resulted from fraud, mistake or undue influence is that the lesion became a good ground for rescission of the contract.

Case Illustration: Auyong Hian vs. Court of Tax Appeals