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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. (1304)
Kung ang depekto ng kontrata ay naglalaman ng kapasidad ng isang partido, ang may
kapansanang tao ay hindi kinakailangang gumawa ng ano mang restitution maliban sa
napakinabangang bagay o premyong natanggap niya.
Discussion:
Exception: However, to balance things, where the minor had received something by virtue of a
contract, which is voidable solely and exclusively because of his incapacity, he must make a
restoration insofar as he has been benefited by the thing or price received by him. If did not
benefit, he has no duty to make restoration.
If the nullity of the contract, however, is due to other reasons, the general rule os mutual
restitution in Art. 1398 apply.
Example
2 minors, together w/ their mother, borrowed money during the Japanese occupation from Villa
Abrille. The money was used for the support of the minors. While the promisory note signed by
the minors promising to pay P10,000.00 in the Phil. Currency 2 yrs. After the cessation of the
hostilesxxx, is voidableand annulled by the Court, the minors were required to return the money
they received from the Villa abrille as they profited by the use thereof.
Whether or not the capacitated party has benefited from what he received from a minor, he must
return the same except when he received the thing from the minor in the performance of the
latters natural obligation, and what had been received had been spent or consumed in good faith.
Article 1400
Kailanman ang tao ay obligado ng batas para sa pagpapawalang bisa na ibalik ang bagay na
hindi pwede sa kadahilanang ito ay nawala sa pamamagitan ng kanyang kapabayaan, dapat
lamang na ibalik nya at bunga na kanyang tinanggap at ang halaga ng bagay na kung saan ay
nawala rin, para sa kapakanan ng naturang kaperehong petsa.
Dumasug v. Modelo
Facts: A contract between A and B was annulled by the court. But the object of the contract, a
carabao, had died while Bs possession.
Held: With respect to the plow carabao that died while in defendants possession, the value of
which is P120, defendant is obliged pursuant to the provision of Art. 1307 (now Art. 1400 of the
New Civil Code) to pay and deliver to plaintiff the value of said animal, with interest as an
indemnity for the detriment caused to its owner.
Article 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)
Ang aksyon para sa pagwawalang bisa ng kontrata ay matatapos kapag ang bagay na pinag-
uugatan ng kontrata ay nawala dahil sa pandaraya o sa pagkakamali ng taong may karapatang
isulong ang paglilitis.
Kung ang karapatan sa pag-aksyon ay naaayon sa kakulangan ng isa sa mga partido, ang
pagkawala ng bagay ay hindi hadlang sa tagumpay ng aksyon, maliban na lamang kung ang
pagkawala nito ay dahil sa pandaraya o sa pagkakamali ng nagsasakdal.
Discussion:
The creditor would not have a cause of action in the first place because he himself caused the
loss of the thing. The principle of Article 1401 in universally understood and recognized because
of the maxim he who comes to court must come with clean hands.
The same thing for the plaintiff, if the loss is due to his fraud or fault, the loss of the thing will
bar the complaint because the plaintiff cannot benefit from his fault or wrong.
Furthermore, if the thing was lost or destroyed due to fortuitous event, the action for annulment
is extinguished unless the defendant has incurred in delay. Likewise, the action for
annulment may be extinguished by prescription of the action or by ratification (confirmation).
Article 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.
Discussion:
The duty of restitution is mutual. After a decision has been rendered and both parties
were required to restore what they received from each other, a Motion for Execution
cannot be filed by a party to implement the decision unless he himself first restored
what he is bound to return.
Case Illustration:
Jay entered into a contract with Zola whereby he obliged himself to create a wooden
statue in the image of Zolas mother. However, it turned out that Zola is only 12 years
old and as such, he is incapacitated to enter into a contract. The contract was annulled.
Zola was then obligated to return the statue while Jay has the obligation of returning the
money payed by Zola for the statue. Since Jay did not return the money, Zola cannot be
compelled to return the statue, as provided for by Article 1402 of the New Civil Code.
Civil Engineering Final Year Projects
1. A STUDY OF MUNICIPAL SOLID WASTE MANAGEMENT IN PUTTUR TOWN -
DAKSHINA KANNADA
12. CREATION OF BASE MAP FOR WATER AND SEWAGE NETWORK FOR
RAMANAGARAM TOWN USING REMOTE SENSING AND GEOGRAPHIC
INFORMATION SYSTEM
1. DESILTING OF TANKS
95. LIGHT WEIGHT BURNT BRICKS USING RICE HUSK AND SAW DUST
112. LIME STABLISED PRESSED SOIL BLOCKS USING BLACK COTTON SOIL
166. SOME STUDIES ON LIME STABILISED RED EARTH SOIL BLOCK MASONARY
346. CASE STUDY ON BUILDING CRACKS AND CAUSES AND ITS PREVENTION
395. USER INTERFACE FOR ELECTRONIC ROAD ATLAS AND BELUR INDUSTRIAL
ESTATE
456. PROPERTIES AND SUITABILITY OF FINE QUARRY DUT FOR THE FINAL COAT
PLASTERING AND IMPERVIOUS LAYER
458. BRICK MASONARY BUILDING MODEL WITH SEISMIC BANDS UNDER THE
ACTION OF BASE MOTION
497. STUDY ON COST EFFECTIVE ARCH LINTEL FOR RURAL HOUSES USING
CONCRETE BLOCKS WITH INDUSTRIAL WASTE
520. STUDIES ON THE USE OF FLY ASH IN CONCRETE FOR ENERGY SAVING
AND TO PROMOTE SUSTAINABILITY
551. GIS - FOR RAIN WATER RECHARGE TO ENHANCE THE GROUND WATER
594. STUDIES ON RAT TRAP BOND MAOSNRY USING STABLIZED MUD BLOCKS
622. CREATION OF BASE MAP FOR WATER AND SEWAGE NETWORK FOR
RAMANAGARAM TOWN USING REMOTE SENSING AND GEOGRAPHIC
INFORMATION SYSTEM
623. SUSTANABLE AND COST EFFECTIVE BUILDING MATERIAL TECHNOLOGY
THROUGH PARTIAL REPLACEMENT OF CEMENT BY GRANITE CUTTING SLURRY
WASTE POWDER AND PARTIAL REPLACEMENT OF COARSE AGGREGATES BY
MANGALORE TILE BATS FOR ARCH LINTELS
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