Professional Documents
Culture Documents
"(4) Doing or proposing to do any business in Art. 1347. All things which are not outside the
substance equivalent to any of the foregoing in a commerce of men, including future things, may be
manner designed to evade the provisions of this
Code.
the object of a contract. All rights which are not Art. 1370. If the terms of a contract are clear and
intransmissible may also be the object of contracts. leave no doubt upon the intention of the
No contract may be entered into upon future contracting parties, the literal meaning of its
inheritance except in cases expressly authorized by stipulations shall control.
law. If the words appear to be contrary to the evident
intention of the parties, the latter shall prevail over
All services which are not contrary to law, morals, the former. (1281)
good customs, public order or public policy may
likewise be the object of a contract. (1271a) Art. 2207. If the plaintiff's property has been
insured, and he has received indemnity from the
insurance company for the injury or loss arising out
of the wrong or breach of contract complained of,
Art. 1353. The statement of a false cause in the insurance company shall be subrogated to the
contracts shall render them void, if it should not be rights of the insured against the wrongdoer or the
proved that they were founded upon another cause person who has violated the contract. If the amount
which is true and lawful. (1276) paid by the insurance company does not fully cover
the injury or loss, the aggrieved party shall be
Art. 2011. The contract of insurance is governed by entitled to recover the deficiency from the person
special laws. Matters not expressly provided for in causing the loss or injury.
such special laws shall be regulated by this Code. "Section 6. Every corporation, partnership, or
(n) association, duly authorized to transact insurance
Art. 2012. Any person who is forbidden from business as elsewhere provided in this Code, may
receiving any donation under Article 739 cannot be be an insurer.
named beneficiary of a life insurance policy by the
person who cannot make any donation to him, "Section 7. Anyone except a public enemy may be
according to said article. (n) insured.
Art. 1377. The interpretation of obscure words or "Section 8. Unless the policy otherwise provides,
stipulations in a contract shall not favor the party where a mortgagor of property effects insurance in
who caused the obscurity. (1288) his own name providing that the loss shall be
payable to the mortgagee, or assigns a policy of "Section 27. A concealment whether intentional or
insurance to a mortgagee, the insurance is deemed unintentional entitles the injured party to rescind a
to be upon the interest of the mortgagor, who does contract of insurance.
not cease to be a party to the original contract, and
any act of his, prior to the loss, which would "Section 28. Each party to a contract of insurance
otherwise avoid the insurance, will have the same must communicate to the other, in good faith, all
effect, although the property is in the hands of the facts within his knowledge which are material to the
mortgagee, but any act which, under the contract contract and as to which he makes no warranty,
of insurance, is to be performed by the mortgagor, and which the other has not the means of
may be performed by the mortgagee therein ascertaining.
named, with the same effect as if it had been
performed by the mortgagor. "Section 29. An intentional and fraudulent
omission, on the part of one insured, to
Section 13. Every interest in property, whether real communicate information of matters proving or
or personal, or any relation thereto, or liability in tending to prove the falsity of a warranty, entitles
respect thereof, of such nature that a contemplated the insurer to rescind.
peril might directly damnify the insured, is an
insurable interest. "Section 30. Neither party to a contract of
insurance is bound to communicate information of
Section 53. The insurance proceeds shall be applied the matters following, except in answer to the
exclusively to the proper interest of the person in inquiries of the other:
whose name or for whose benefit it is made unless
otherwise specified in the policy. "(a) Those which the other knows;
"Section 32. Each party to a contract of insurance "Section 37. A representation may be made at the
is bound to know all the general causes which are time of, or before, issuance of the policy.
open to his inquiry, equally with that of the other,
and which may affect the political or material perils "Section 38. The language of a representation is to
contemplated; and all general usages of trade. be interpreted by the same rules as the language
of contracts in general.
"Section 33. The right to information of material
facts may be waived, either by the terms of "Section 39. A representation as to the future is to
insurance or by neglect to make inquiry as to such be deemed a promise, unless it appears that it was
facts, where they are distinctly implied in other merely a statement of belief or expectation.
facts of which information is communicated.
"Section 40. A representation cannot qualify an
"Section 34. Information of the nature or amount express provision in a contract of insurance, but it
of the interest of one insured need not be may qualify an implied warranty.
"Section 41. A representation may be altered or "Section 46. The materiality of a representation is
withdrawn before the insurance is effected, but not determined by the same rules as the materiality of
afterwards. a concealment.
"Section 42. A representation must be presumed to "Section 47. The provisions of this chapter apply as
refer to the date on which the contract goes into well to a modification of a contract of insurance as
effect. to its original formation.
"Section 43. When a person insured has no "Section 48. Whenever a right to rescind a contract
personal knowledge of a fact, he may nevertheless of insurance is given to the insurer by any provision
repeat information which he has upon the subject, of this chapter, such right must be exercised
and which he believes to be true, with the previous to the commencement of an action on the
explanation that he does so on the information of contract.
others; or he may submit the information, in its
whole extent, to the insurer; and in neither case is "After a policy of life insurance made payable on
he responsible for its truth, unless it proceeds from the death of the insured shall have been in force
an agent of the insured, whose duty it is to give the during the lifetime of the insured for a period of two
information. (2) years from the date of its issue or of its last
reinstatement, the insurer cannot prove that the
"Section 44. A representation is to be deemed false policy is void ab initio or is rescindable by reason of
when the facts fail to correspond with its assertions the fraudulent concealment or misrepresentation of
or stipulations. the insured or his agent.