DISCUSSIONS ON: REFORMATION OF INSTRUMENTS

1. Zi Zamora sold her horse “Angel” to Nami Tsuji under a written contract of sale. What
Nami Tsuji thought Zi Zamora was selling her is horse “Allana”. Can Zi Zamora ask for
the reformation of the contract against the objection of Nami Tsuji who is agreeable to
the sale of horse “Angel”?
 Zi Zamora can ask for the reformation of the contract since both parties
commit mutual mistake.
 This problem/case is supported by Article 1361 as it states that “when a
mutual mistake of the parties causes the failure of the instrument to
disclose their real agreement, said instrument may be reformed.”
2. Suppose in the same example, Zi Zamora was intending to sell her horse “Combs”. Give
the three (3) cases when she can ask for the reformation of the contract?
 The mistake, in this problem/case, is only acted by one party. Therefore,
it is not mutual.
 Art. 1362 – If one party was mistaken and the other acted fraudulently or
inequitably in such a way that the instrument does not show their true
intention, the former may ask for the reformation of the instrument.
 Art. 1363 – When one party was mistaken and the other knew or
believed that the instrument did not state their real agreement, but
concealed that fact from the former, the instrument may be reformed.
 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 courts may order that the instrument be reformed.