Art. 1398.

contracting
which have
their fruits,
provided by

An obligation having been annulled, the

parties shall restore to each other the things
been the subject matter of the contract, with
and the price with its interest, except in cases
law.

In obligations to render service, the value thereof shall be

the basis for damages.
Art. 1399. When the defect of the contract consists in the
incapacity of one of the parties, the incapacitated person is
not obliged to make any restitution except insofar as he has
been benefited by the thing or price received by him.

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1.

What is the rule if the person who has a right to file an action to annul
the contract (plaintiff) can no longer return the thing object of the
contract because of its loss due to his own fault or fraud? (Tolentino, p.
612)

2.

3.

Will the same rule apply if plaintiff is a minor ?

Will the action for annulment still prosper if the object of the contract
has been lost by the plaintiff or the party who has the right to institute
the action but without his fault or due to fortuitous event? (Tolentino, p.
613)

Is the action for annulment by plaintiff now extinguished?

Can plaintiff still compel defendant to make restitution?

If the thing is lost by Plaintiff without his fault but due thru
fortuitous event, and as substitute for the thing lost, he offers to
pay its value at the time of loss. Can he now compel defendant to
also make restitution?

What is the rule if Defendant, the person obliged by the decree of

annulment to return the thing cannot do so because it has been lost
through his fault or fraud? (Tolentino, p. 612)
1

4.

What about if the loss is due to fortuitous event, without fault by the
contracting party obliged to return the thing (Defendant), will the action
for the annulment of contract by plaintiff still prosper? (Tolentino, pp.
613-614; read Dumasug v. Modelo, 34 Phil. 252)

Will the Defendant in this case be held liable or not?

5.

What are the other causes for extinguishment of the action for
annulment of a voidable contract besides Art. 1401?

6.

What is the rule if the party obliged to return the fruits and accessions
of the property object of the contract cannot do so due to his fault or
fraud?

7.

What are the legal consequences, if after the court ordered the parties
to do mutual restitution, one of them cannot restore what he is bound to
return?

Art. 1400. Whenever the person obliged by the decree of

annulment to return the thing cannot 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.
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.
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.