- Statute
- Civil Code
- Article
- Art. 1191
- Topic
- Statutory provision
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE I Obligations
- Chapter
- CHAPTER 3 Different Kinds of Obligations
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.
The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible.
The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.
This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law. (1124)
Intellegal Wiki · In plain terms
In reciprocal obligations (each party owes the other), if one party fails to perform, the injured party has an implied power to rescind. That party may instead demand fulfillment—with damages available either way—and may still seek rescission if fulfillment later becomes impossible. Courts grant the rescission unless there is just cause to fix a period, and third parties' acquired rights are protected.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In The Wellex Group v. U-Land Airlines, the Supreme Court held: Where a contract conditions a party's obligation on executing a further agreement, failure to execute it within the agreed period renders the contract ineffective; the injured party may then rescind the reciprocal obligations under Article 1191, with mutual restitution.
One leading Supreme Court case applying this provision.
Key points
In reciprocal obligations the power to rescind is implied if one party fails to perform. The injured party may choose between fulfillment and rescission, with damages either way, and may seek rescission even after choosing fulfillment if that becomes impossible. The court may grant the debtor a period for just cause.
Cases applying this article
- Lam v. Kodak Philippines G.R. No. 167615
- Estelita Villamar v. Balbino Mangaoil G.R. No. 188661
- Viloria v. Continental Airlines G.R. No. 188288
- Vicelet Lalicon v. National Housing Authority G.R. No. 185440
- Heirs of Sofia Quirong v. Development Bank of the Philippines G.R. No. 173441
- Unlad Resources Development Corporation v. Renato P. Dragon G.R. No. 149338
- Victoria Ong v. Ernesto Bogñalbal G.R. No. 149140
- Visayan Sawmill Company v. The Honorable Court of Appeals G.R. No. 83851
Other Supreme Court decisions also apply this article.