 Article 1397 states that ------------

 There are two requisites required to confer the necessary capacity to bring an action for
annulment of contract. And what are they? (CALL) -------------
 In some cases strangers has the right to bring the action, let us first define stranger, we all know
that stranger is the one who is not a party to the contract or an assignee. Under article 1397,
strangers are those who have no legal capacity to challenge the validity of such contract.
Strangers, therefore, are without right or personality to bring the action for they are not obliged
by the contract, principally or subsidiarily, UNLESS they can show detriment which would
positively result to them from the contract in which they have no intervention or participation.
EXAMPLE.
 The guilty party, including his successor in interest, cannot ask for annulment. This rule is
sustained by the principle that he who comes to court must come with clean hands.

 Article 1398 ------------------

 Duty of mutual restitution upon annulment: 1 & 2 -----------
 The fruits must be returned because the one who receive it has no right to enjoy it, while legal
interest must also be returned because the one who receive it has no right to use it.

 Article 1399 -----------------

 This provision is an exception to the general rule of mutual restitution under the preceding
article. The incapacitated person is obliged to make restitution only to the extent that he was
benefited by the thing or price received by him. Therefore, if he was not benefited, he is not
obliged to restore what he had received. But the contracting party is still bound to return what
he had receive whether he was benefited or not.

 Article 1400 -----------------

 Effects of loss of thing to be returned ----------
 EXAMPLE

 Article 1401 -----------------

 The first paragraph simply states that : The action for annulment shall be extinguished only if the
loss is through the fault or fraud of the plaintiff.
 While the second paragraph states that: The right of action is based upon the incapacity of any
one of the contracting parties. Whether the right of action is based upon incapacity or not, the
rule is the same.

 Article 1402 -----------------

 Effect where a party cannot restore what he is bound to return.....
 There will be no annulment if the party cannot restore what he is bound to return. This is true
even if the loss is due to a fortuitous event.
 EXAMPLE