Article 1400

Whenever the person obliged by the

decree of annulment to return the
thing cannot do so because it has
been lost through his fault, he shall
return the fruits received and the
value of the thing at the same time of
the loss, with interest from the same
date.
Kung kelan na ang tao ay obligado ng
batas para sa pagpapawalang bisa na
ibalik ang bagay na hindi pwede sa
kadahilanang ito ay nawala sa
pamamagitan ng kanyang
kapabayaan, dapat lamang na ibalik
nya at bunga na kanyang tinanggap at
ang halaga ng bagay na kung saan ay
nawala rin, para sa kapakanan ng
naturang kaperehong petsa.
Example:
X by force and threat, was able to
purchase the apartment house of Y. Later, Y
brought an action to annul the contract
which action was granted by the court. X
was ordered by the court return to Y the
apartment house but X cannot do so
because the apartment house had been
destroyed by fire through his fault . In this
case, therefore, X has the following
obligation:
1- To give Y the fruits or rentals of the
apartment house, if any, from the
time the house was delivered to him;
2- To give to Y the value of the
apartment house at the time of the
loss plus interest on the value of the
house.
Article 1401
The action for annulment of contracts
shall be extinguished when the thing
which is the object thereof is lost
through the fraud or fault of the
person who has a right to institute
the proceedings.
If the right of action is based upon the
incapacity of any one of the
contracting parties, the loss of the
thing shall not be an obstacle to the
success of the action, unless said loss
took place through the fraud or fault
of the plaintiff
Ang aksyon para sa pagwawalang bisa
ng kontrata ay matatapos kapag ang
bagay na pinag-uugatan ng kontrata
ay nawala dahil sa pandaraya o sa
pagkakamali ng taong may
karapatang isulong ang paglilitis.
Kung ang karapatan sa pag-aksyon ay
naaayon sa kakulangan ng isa sa mga
partido, ang pagkawala ng bagay ay
hindi hadlang sa tagumpay ng aksyon,
maliban na lamang kung ang
pagkawala nito ay dahil sa pandaraya
o sa pagkakamali ng nagsasakdal.
 Loss of the thing while in the
possession of the party who can annul
the contract

A- Due to his fault or fraud

The right to annul is extinguished
if the thing is lost through the fraud or
fault of the party who has the right of
annulment
B- Due to fortuitous event
The contract can still be annulled.
But the other party cannot be
compelled to make restitution unless
the innocent party restores what in
virtue of the decree of annulment he is
bound to return.
Example:
C was forced by B to enter into a
contract of barter whereby B exchange
his fountain pen with C’s ring. If the
fountain pen is lost due to the fault of
C. C’s right of the annulment is
extinguished.
Article 1402
As long as one of the contracting
parties does not restore what in
virtue of the decree of annulment he
is bound to return, the other cannot
be compelled to comply with what is
incumbent upon him.
Hangga’t isa sa mga partido ay hindi
pa binabalik ang kaniyang
responsibilidad na ibalik, ang kabilang
partido ay hindi pwedeng piliting
gawin ang nakatoka niyang gawain.
Mutual Restitution
if an obligation is annulled , the
parties shall restore to each other the
things which have been the object the
contract, with their fruits, and the
price with its interest. Hence, if one of
the parties does not restore what he is
required to restore, the other cannot
be compelled to make restitution.
Example:
C was forced by B to enter into a contract to
barter whereby B exchanged his iphone with
C’s Tablet. If the contract is annulled B is
required to return the tablet to C and C is
required to return the iphone to B. if the
iphone is lost due to a fortuitous event, the
C’s right to annulment shall subsist but B is
not required to return the tablet to C unless
the value of the iphone at the time of its loss
is returned by C to B.