Page 342 - Important Provisions of The New Civil Code

Article 1397. The action for the annulment of

contracts may be instituted by all who are

thereby obliged principally or subsidiarily.

However, persons who are capable cannot

allege the incapacity of those with whom they

contracted; nor can those who exerted

intimidation, violence, or undue influence, or

employed fraud, or caused mistake base their

action upon these flaws of the contract. (1302a)

Article 1399. When the defect of the contract

consists in the incapacity of one of the parties,

the incapacitated person is not obliged to make

any restitution except insofar as he has been

benefited by the thing or price received by him.

(1304)