250 Rules when it is absolutely impossibl CONTRACTS ‘ { of insurance which j, ‘Thus, in a ‘contract 0 nal be i is g con, any ambiguity shall be interpre, contract of adhesion, any amie a olicy da i inst the insurer since t i result from mutual negotiation between the parties a8 they are prescribed by the insurer in printed form to which iL it F i jnooses but which he ca, insured may ‘adhere” if he cl naa change. (Del Rosario vs. Equitable Insurance and Casualty Co., GR. No. 16215, June 29, 1963) je to settle doubts unde, the preceding rules (Art. 1378) 1. refer to the incidental circumstances of g When the doubts ul cl a t, the least transmission of rights and gratuitous contract interests shall prevail. Example: If C gave his bicycle to D, but it cannot be determined whether C donated it (donation) or merely lent it (commodatum), the contract should be interpreteq as commodatum rather than donation — because commodatum transmits lesser rights since the ownership of the bicycle is retained by C. : If the contract is onerous, the doubt shall be ‘settled in favor of the greatest reciprocity of interests. Example: D_ obtained from = C a loan of P500,000.00 which bears interest at 1% per month. It cannot be determined, however, whether the loan is payable in 2 years or 3 years The repayment period should be interpreted at 3 years because D will have more time to use the money, while C will earn more interest. If the doubts are cast upon the principal object of the contract in such a way that it cannot.be known what may have been the intention or will of the parties, the contract shall be null and void. Example: S$ has several cars. He sold one car to B but it cannot be determined which of the cars was being sold. The contract of sale is void.