Page 350 - Important Provisions of The New Civil Code

Article 1412. If the act in which the unlawful or

forbidden cause consists does not constitute a

criminal offense, the following rules shall be

observed:

(1) When the fault is on the part of both

contracting parties, neither may recover

what he has given by virtue of the contract,

or demand the performance of the other's

undertaking;

(2) When only one of the contracting parties

is at fault, he cannot recover what he has

given by reason of the contract, or ask for

the fulfillment of what has been promised

him. The other, who is not at fault, may

demand the return of what he has given

without any obligation to comply his

promise. (1306)