Article 1380

Contracts validly agreed upon may be rescinded in the cases established by law. (1290)

Kontratang maybisang mapagkasunduan, ay maaring ikansila (pawalan bisa) sa mga pagkakataon itinalaga nang batas.

Discussion:

What is a rescissible contract?

A rescissible contract is one which contains all the essential requisites of a contract which make it valid, but by reasons of injury or damage to either of the contracting parties or to third person, such as creditors, may be rescinded.

What are the characteristics of a rescissible contract?

1. It has all the elements of a valid contract;
2. It has a defect consisting in an injury to one of the contracting parties or third person, generally in the form of economic damage or lesion, fraud, alienation of property subject of case in court without the consent of the litigants or of the court;
3. It is valid and effective until rescinded;
4. It can be attacked only directly, either by one of the contracting parties or by an affected third person, who is injured or defrauded by the contract;
5. It is susceptible of convalidation only by prescription. Ratification process does not apply.

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 have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority;

(5) All other contracts specially declared by law to be subject to rescission. (1291a)

Ang sumusunod na mga kontrata ay maaring ikansila:

1. Yaong mga ipinasok ng mga tagapangalaga kapag ang kanilang inaalagaan na kanilang kinakatawan ay walang kakayahan mahigit sa ika apat ng halaga ng mga bagay na siyang kadahilanan;

2. Yaong mga napagkasunduan na patungkol sa wala, kung ang huli ay mayroon kwalang kakayahan na nakasaad sa naunang bilang;

3. Yaong mga pagsasaayos na maypanlinlang sa mga nagpapautang ang nahuli ay hindi na sa anu man paraan makaka singil pa;

4. Yaong mga nauukol sa mga bagay na napapailalim ng hukuman kung iyon ay pinasok ng nasasakdal na walang kaalaman at pagsang-ayon ng mga nasasakdal  o ng hukuman may karampatan kapangyarihan;

5. Lahat nang ibang mga kontrata na lalong itinakda ng batas na maaring ipawalang bisa/ ikansila; Halimbawang kaso: Cannu v Galang 459 SCRA 80

Case Illustration: Sps. Felipe and Leticia Cannu vs. Sps. Gil and Fernandina Galang & National Home Mortgage Finance Corporation

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. (1292)


Ang mga obligasyong hindi kayang bayaran o hindi kayang tupdin ng umutang ay pwedeng baliwalain ngunit kinakailangan isauli ang mga ito sa nagpautang.


Discussion:

Rescission under Article 1191 is a result of what people usually call as breach of contract. In reciprocal contracts, parties have mutual obligations and the obligation by either party to do, not to do or to give something is actually the cause for the other party to agree to also do, not do or give something in return. So when one does not perform his obligations under his contract, the other party has remedies under the law. Under the said Article 1191, the injured party can choose between fulfillment and rescission, with payment of damages in either case. This means that the injured party can either compel the guilty party to perform his part of the contract and claim for damages as a result of the breach, or it can rescind the contract and also claim for damages. (pinoylegal)