Page 349 - Important Provisions of The New Civil Code

Article 1411. When the nullity proceeds from

the illegality of the cause or object of the

contract, and the act constitutes a criminal

offense, both parties being in pari delicto, they

shall have no action against each other, and

both shall be prosecuted. Moreover, the

provisions of the Penal Code relative to the

disposal of effects or instruments of a crime

shall be applicable to the things or the price of

the contract.

This rule shall be applicable when only one of

the parties is guilty; but the innocent one may

claim what he has given, and shall not be bound

to comply with his promise. (1305)