- Statute
- Civil Code
- Article
- Art. 1414
- Topic
- Void and Inexistent Contracts
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE II CONTRACTS
- Chapter
- CHAPTER 9 Void and Inexistent Contracts
- Year
- 1949
- Cited by
- A Supreme Court decision
The provision
When money is paid or property delivered for an illegal purpose, the contract may be repudiated by one of the parties before the purpose has been accomplished, or before any damage has been caused to a third person. In such case, the courts may, if the public interest will thus be subserved, allow the party repudiating the contract to recover the money or property.
Intellegal Wiki · In plain terms
When money or property is handed over for an illegal purpose, the party who gave it may back out and reclaim it — but only before the illegal purpose is carried out or before a third person is harmed. Even then, courts allow recovery only if returning the money or property serves the public interest.
An editorially maintained plain-language explanation of this provision — not legal advice.
Intellegal Wiki · How the courts apply it
In Sylvia Lichauco de Leon v. The Hon. Court of Appeals, the Supreme Court held: Affirmed the CA and denied the petition, holding a letter-agreement providing property in exchange for terminating marital relations void for illegal consideration under Articles 1306 and 1409 because marriage is an inviolable social institution (Article 52); applied Article 1414 to allow recovery of what was paid for the illegal purpose as an exception to the pari delicto rule.
One leading Supreme Court case applying this provision.
Cases applying this article
- Sylvia Lichauco de Leon v. The Hon. Court of Appeals G.R. No. 80965