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Art. 1357.

If the law requires a document or other special form, as in the acts and
contracts enumerated in the following article, the contracting parties may compel
each other to observe that form, once the contract has been perfected. This right
may be exercised simultaneously with the action upon the contract. (1279a)

Form for the conveniences of the parties.


When form is required for the convenience of the parties in order the contract may be
registered in the proper registry to make effective, and the contract is in not that
form, contracting parties may compel each other to observe that form, once the contract
required by the law but if not essential for validity of the contract.

Art. 1358. The following must appear in a public document:

(1) Acts and contracts which have for their object the creation, transmission,
modification or extinguishment of real rights over immovable property; sales of
real property or of an interest therein a governed by Articles 1403, No. 2, and
1405;

(2) The cession, repudiation or renunciation of hereditary rights or of those of the


conjugal partnership of gains;

(3) The power to administer property, or any other power which has for its object
an act appearing or which should appear in a public document, or should
prejudice a third person;

(4) The cession of actions or rights proceeding from an act appearing in a public
document.

All other contracts where the amount involved exceeds five hundred pesos must
appear in writing, even a private one. But sales of goods, chattels or things in
action are governed by Articles, 1403, No. 2 and 1405. (1280a)

Contracts covered by this article are valid and enforceable though not embodied in a


public document or instrument or in writing. The public document is required only for the
convenience and greater protection of the parties and registration is needed only to
make the contract effective as against third persons. 

Public instrument- one which is acknowledged before a notary public or any official
authorized to administer oath, by the person who executed the same.
Private instrument- acquires the character of a public document when it becomes part
of an official record and is certified by a public officer duly authorized by law. 
In other words, the law does not require accomplishment of certain acts or contracts in a
public instrument in order to validate the act or contract but only to insure its efficacy so
that after the existence of the act or contract has been admitted or established, the party
bound may be compelled to execute the document.

Art. 1359. When, there having been a meeting of the minds of the parties to a
contract, their true intention is not expressed in the instrument purporting to
embody the agreement, by reason of mistake, fraud, inequitable conduct or
accident, one of the parties may ask for the reformation of the instrument to the
end that such true intention may be expressed.

If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the


minds of the parties, the proper remedy is not reformation of the instrument but
annulment of the contract.

Reformation - the remedy by means of which a written instrument is amended or


corrected to express the real agreement or intention of the parties when by reason of
mistake, fraud, inequitable conduct, or accident, the instrument fails to express such
agreement or intention.

Requisites of Reformation

1. There must have been a meeting of the minds upon the contract;
2. The instrument or document evidencing the contract does not express the true
agreement between the parties;
3. The failure of the instrument to express the agreement must be due to mistake,
fraud, inequitable conduct, or accident.

Reformation distinguished 

In order that reformation may be availed of as a remedy:

1. There must have been a meeting of the minds upon the contract;
2. The instrument or document evidencing the contract does not express the true
agreement between the parties;
3. The failure of the instrument to express the agreement must be due to mistake,
fraud, inequitable conduct, or accident.
4. The facts upon which relief by way of reformation of the instrument is sought are out
in issue by the pleadings
5. There is clear and convincing evidence of the mistake, fraud, inequitable conduct, or
accident.

Reformation distinguished from Annulment

Reformation presupposes that there is valid existing contract between the parties, and
only the document or instrument which was drawn up and signed by them does not
correctly expressed the terms of their agreement. In annulment, there has been no
meeting of the minds, the consent of one of the parties being vitiated by violence or
intimidation or mistake or fraud.

Art.1360. The principles of the general law on the reformation of instruments are
hereby adopted insofar as they are not conflict with the provisions of this Code.

In case of conflict between provisions of New Civil Code and the principles of the
general law on reformation, the former prevails. The latter will have only a suppletory
effect.

Art.1361. When a mutual mistake of the parties causes the failure of the
instrument to disclose their real agreement, said instrument may be reformed.

Mutual mistake- mistake of fact that is common to both parties of the instrument which
causes the failure of the instrument to express the true intention.

To justify reformation, the following requisites must concur:

1. The mistake must be a fact.


2. Such mistake must be probed by clear and convincing evidence.
3. The mistake must be mutual which is common for both parties to the instrument.
4. The mistake must cause the failure of the instrument to express their true
intention.

Art. 1362. If one party was mistaken and other act fraudulently or inequitably in
such way that the instrument does not show their true intention, the former may
ask for the reformation of the instrument.

Under Article 1362, the right to ask reformation is granted only to the party who was
mistaken in good faith. Here, the mistake is not mutual.
Art. 1363. When one party was mistaken and the other knew or believed that the
instrument did not stale their real agreement, but concealed that fact from the
former, the instrument may be reformed.

The remedy of reformation may be availed of the party with good faith. The
concealment mistake by the other party constitutes fraud.

Art. 1364. When through the ignorance, lack of skill, negligence or bad faith on
the part of the person drafting the instrument or of the clerk or typist, the
instrument does not express the true intention of the parties, the court may order
that the instrument may be reformed.

Under the above article, neither party is responsible for the mistake. Both parties may
ask for reformation.

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