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Article 1381

RA 386 · Civil Code of the Philippines

ELI5— what this means for you

Contracts that may be rescinded include: those made by legal guardians where the ward suffers lesion exceeding 1/4 of property value; payments made in insolvency; contracts in fraud of creditors.

Official text — RA 386

The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof;

(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number;

(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them;

(4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority;

(5) All other contracts specially declared by law to be subject to rescission. (1291a)

Source: lawphil.net (RA 386 as amended)

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