Philippine Civil Code

Philippine Civil Code: Contracts, Forms, and Reformation

Contract Obligation

• Contracts are obligatory in whatever form they have been entered into, provided all the essential requisites for their validity are present.
• Exceptions to the rule are when the law requires a particular format for the validity or enforceability of a contract or when the law requires that a contract be proved in a certain way.
• The importance of form pertains to validity, enforceability, and convenience.
• A public document is one duly notarized or authenticated by a notary public or any public official authorized by law.

Reformation of Instruments

• When the true intention of the parties is not expressed in the instrument purporting to embody the agreement due to mistake, fraud, inequitable conduct, or accident, one of the parties may ask for the reformation of the instrument.
• 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.
• The principles of the general law on the reformation of instruments are adopted insofar as they are not in conflict with the provisions of this Code.
• A mutual mistake of the parties causing the failure of the instrument to disclose their real agreement may be reformed.
• 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.
• 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.
• When through the ignorance, lack of skill, negligence, or bad faith 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.
• Reformation is proper when two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase.
• Reformation is not allowed in simple donations inter vivos wherein no condition is imposed, wills, and when the real agreement is void.
• When one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation.
• Reformation may be ordered at the instance of either party or his successors in interest if the mistake was mutual; otherwise, upon petition of the injured party or his heirs and assigns.
• The procedure for the reformation of the instrument shall be governed by rules of court to be promulgated by the Supreme Court.

Test your knowledge on the Philippine Civil Code's provisions on Contracts, Forms, and Reformation with this quiz. Learn about the essential requisites for the validity of contracts, exceptions to the rule on contract obligation, and the importance of form. Explore the principles of reformation of instruments, including when it is proper, who can request it, and the procedure for its implementation. Keywords: Philippine Civil Code, Contracts, Forms, Reformation, Obligation, Validity, Enforceability, Public Document