- Statute
- Philippine Civil Code
- Article
- Art. 1471
- Topic
- Nature and Form of the Contract
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE VI SALES
- Chapter
- CHAPTER 1 Nature and Form of the Contract
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
If the price is simulated, the sale is void, but the act may be shown to have been in reality a donation, or some other act or contract. (n)
Intellegal Wiki · In plain terms
A simulated price is not a low price. Where the price stated is not one the parties ever intended to be paid, the sale is void — but the transaction may still be shown to have been in reality a donation or some other act or contract, and to take effect as that. This is the relative simulation of Article 1345, which Article 1346 makes binding on the parties according to their real agreement, provided it prejudices no third person and is not for a purpose contrary to law, morals, good customs, public order or public policy. Mere inadequacy is treated differently: under Article 1470 gross inadequacy of price does not affect a sale except as it may indicate a defect in consent, or that a donation or other contract was really intended.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- Francisco Irureta Goyena v. Ildefonso Tambunting G.R. No. 956
- Myrna C. Pasco v. Isabel Cuenca G.R. No. 214319
- Manuel Catindig v. Aurora Irene Vda. de Meneses G.R. No. 165851
- Felix Ting Ho, Jr. v. Vicente Teng Gui G.R. No. 130115