Page 297 - Important Provisions of The New Civil Code

Article 1191. The power to rescind obligations

is implied in reciprocal ones, in case one of the

obligors should not comply with what is

incumbent upon him.

The injured party may choose between the

fulfillment and the rescission of the obligation,

with the payment of damages in either case. He

may also seek rescission, even after he has

chosen fulfillment, if the latter should become

impossible.

The court shall decree the rescission claimed,

unless there be just cause authorizing the fixing

of a period.

This is understood to be without prejudice to

the rights of third persons who have acquired

the thing, in accordance with Articles 1385 and

1388 and the Mortgage Law