By Violet Crystal

 Art.
1400. Whenever the person obliged by
the decree of annulment to return the
thing can not do so because it has been lost
through his fault, he shall return the fruits
received and the value of the thing at the
time of the loss, with interest from the
same date. (1307a)
 Art. 1401. The action for annulment of
contracts shall be extinguished when the
thing which is the object thereof is lost
through the fraud or fault of the person
who has a right to institute the
proceedings.
 If the right of action is based upon the
incapacity of any one of the contracting
parties, the loss of the thing shall not be an
obstacle to the success of the action,
unless said loss took place through the
fraud or fault of the plaintiff. (1314a)
 Art.1402. As long as one of the contracting
parties does not restore what in virtue of
the decree of annulment he is bound to
return, the other cannot be compelled to
comply with what is incumbent upon him.
(1308)
 Art. 1403. The following contracts are
unenforceable, unless they are ratified:
 (1) Those entered into in the name of
another person by one who has been given
no authority or legal representation, or
who has acted beyond his powers;
 (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, be
in writing, and subscribed by the party
charged, or by his agent; evidence,
therefore, of the agreement cannot be
received without the writing, or a
secondary evidence of its contents:
 (a) An agreement that by its terms is not to be performed
within a year from the making thereof;(b) A special promise to
answer for the debt, default, or miscarriage of another;
 (c) An agreement made in consideration of marriage, other
than a mutual promise to marry;
 (d) An agreement for the sale of goods, chattels or things in
action, at a price not less than five hundred pesos, unless the
buyer accept and receive part of such goods and chattels, or
the evidences, or some of them, of such things in action or pay
at the time some part of the purchase money; but when a sale
is made by auction and entry is made by the auctioneer in his
sales book, at the time of the sale, of the amount and kind of
property sold, terms of sale, price, names of the purchasers
and person on whose account the sale is made, it is a
sufficient memorandum;
 (e) An agreement of the leasing for a longer period than one
year, or for the sale of real property or of an interest therein;
 (f) A representation as to the credit of a third person.
 (3)Those where both parties are incapable
of giving consent to a contract.
 Art. 1404. Unauthorized contracts are
governed by Article 1317 and the
principles of agency in Title X of this Book.
 Art. 1405. Contracts infringing the Statute
of Frauds, referred to in No. 2 of Article
1403, are ratified by the failure to object
to the presentation of oral evidence to
prove the same, or by the acceptance of
benefit under them.
 Art.1406. When a contract is enforceable
under the Statute of Frauds, and a public
document is necessary for its registration
in the Registry of Deeds, the parties may
avail themselves of the right under Article
1357.
 Art. 1407. In a contract where both parties
are incapable of giving consent, express or
implied ratification by the parent, or
guardian, as the case may be, of one of the
contracting parties shall give the contract
the same effect as if only one of them
were incapacitated.
 If ratification is made by the parents or
guardians, as the case may be, of both
contracting parties, the contract shall be
validated from the inception.
 Art.
1408. Unenforceable contracts cannot
be assailed by third persons.
 Art. 1409. The following  (4) Those whose object is
contracts are inexistent and outside the commerce of
void from the beginning: men;
 (1) Those whose cause,  (5) Those which
object or purpose is contemplate an impossible
contrary to law, morals, service;
good customs, public order  (6) Those where the
or public policy; intention of the parties
 (2) Those which are relative to the principal
absolutely simulated or object of the contract
fictitious; cannot be ascertained;
 (3) Those whose cause or  (7) Those expressly
object did not exist at the prohibited or declared void
time of the transaction; by law.
 These contracts cannot be
ratified. Neither can the
right to set up the defense
of illegality be waived.
 Art. 1410. The action or defense for the
declaration of the inexistence of a contract does
not prescribe.
 Art. 1411. When the nullity proceeds from the
illegality of the cause or object of the contract,
and the act constitutes a criminal offense, both
parties being in pari delicto, they shall have no
action against each other, and both shall be
prosecuted. Moreover, the provisions of the Penal
Code relative to the disposal of effects or
instruments of a crime shall be applicable to the
things or the price of the contract.
 This rule shall be applicable when only one of the
parties is guilty; but the innocent one may claim
what he has given, and shall not be bound to
comply with his promise. (1305)
 Art. 1412. If the act in which the unlawful or
forbidden cause consists does not constitute a
criminal offense, the following rules shall be
observed:
 (1) When the fault is on the part of both
contracting parties, neither may recover what he
has given by virtue of the contract, or demand the
performance of the other's undertaking;
 (2) When only one of the contracting parties is at
fault, he cannot recover what he has given by
reason of the contract, or ask for the fulfillment of
what has been promised him. The other, who is not
at fault, may demand the return of what he has
given without any obligation to comply his
promise. (1306)
 Art. 1413. Interest paid in excess of the
interest allowed by the usury laws may be
recovered by the debtor, with interest thereon
from the date of the payment.
 Art. 1414. When money is paid or property
delivered for an illegal purpose, the contract
may be repudiated by one of the parties
before the purpose has been accomplished, or
before any damage has been caused to a third
person. In such case, the courts may, if the
public interest will thus be subserved, allow
the party repudiating the contract to recover
the money or property.
 Art. 1415. Where one of the parties to an
illegal contract is incapable of giving
consent, the courts may, if the interest of
justice so demands allow recovery of
money or property delivered by the
incapacitated person.
 Art. 1416. When the agreement is not
illegal per se but is merely prohibited, and
the prohibition by the law is designated for
the protection of the plaintiff, he may, if
public policy is thereby enhanced, recover
what he has paid or delivered.
 Art. 1417. When the price of any article or
commodity is determined by statute, or by
authority of law, any person paying any
amount in excess of the maximum price
allowed may recover such excess.
 Art. 1418. When the law fixes, or
authorizes the fixing of the maximum
number of hours of labor, and a contract is
entered into whereby a laborer undertakes
to work longer than the maximum thus
fixed, he may demand additional
compensation for service rendered beyond
the time limit
 Art. 1419. When the law sets, or
authorizes the setting of a minimum wage
for laborers, and a contract is agreed upon
by which a laborer accepts a lower wage,
he shall be entitled to recover the
deficiency.
 Art. 1420. In case of a divisible contract, if
the illegal terms can be separated from the
legal ones, the latter may be enforced.
 Art. 1421. The defense of illegality of
contract is not available to third persons
whose interests are not directly affected.
 Art. 1422. A contract which is the direct
result of a previous illegal contract, is also
void and inexistent.
 Art. 1423. Obligations are civil or natural.
Civil obligations give a right of action to
compel their performance. Natural
obligations, not being based on positive law
but on equity and natural law, do not grant
a right of action to enforce their
performance, but after voluntary
fulfillment by the obligor, they authorize
the retention of what has been delivered
or rendered by reason thereof. Some
natural obligations are set forth in the
following articles.
 Art. 1424. When a right to sue upon a civil
obligation has lapsed by extinctive
prescription, the obligor who voluntarily
performs the contract cannot recover what he
has delivered or the value of the service he
has rendered.
 Art. 1425. When without the knowledge or
against the will of the debtor, a third person
pays a debt which the obligor is not legally
bound to pay because the action thereon has
prescribed, but the debtor later voluntarily
reimburses the third person, the obligor
cannot recover what he has paid.
 Art.
1426. When a minor between eighteen
and twenty-one years of age who has
entered into a contract without the
consent of the parent or guardian, after
the annulment of the contract voluntarily
returns the whole thing or price received,
notwithstanding the fact the he has not
been benefited thereby, there is no right
to demand the thing or price thus returned
 Art.1427. When a minor between eighteen
and twenty-one years of age, who has
entered into a contract without the
consent of the parent or guardian,
voluntarily pays a sum of money or delivers
a fungible thing in fulfillment of the
obligation, there shall be no right to
recover the same from the obligee who has
spent or consumed it in good faith. (1160A)
 Art. 1428. When, after an action to
enforce a civil obligation has failed the
defendant voluntarily performs the
obligation, he cannot demand the return of
what he has delivered or the payment of
the value of the service he has rendered.
 Art. 1429. When a testate or intestate heir
voluntarily pays a debt of the decedent
exceeding the value of the property which
he received by will or by the law of
intestacy from the estate of the deceased,
the payment is valid and cannot be
rescinded by the payer.
 Art.1430. When a will is declared void
because it has not been executed in
accordance with the formalities required
by law, but one of the intestate heirs, after
the settlement of the debts of the
deceased, pays a legacy in compliance with
a clause in the defective will, the payment
is effective and irrevocable.