- Statute
- Civil Code
- Article
- Art. 2018
- Topic
- Gambling
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE XIII ALEATORY CONTRACTS
- Chapter
- CHAPTER 2 Gambling
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
If a contract which purports to be for the delivery of goods, securities or shares of stock is entered into with the intention that the difference between the price stipulated and the exchange or market price at the time of the pretended delivery shall be paid by the loser to the winner, the transaction is null and void. The loser may recover what he has paid. (n)
Intellegal Wiki · In plain terms
A contract that looks like a sale of goods, securities, or shares but is really made so that only the difference between the agreed price and the market price is paid by the loser to the winner is a disguised wager and is void. Anyone who lost and paid under it may recover what they paid.
An editorially maintained plain-language explanation of this provision — not legal advice.
Cases applying this article
- National Transmission Corporation v. Leslie L. de Jesus G.R. No. 217928
- Nm Rothschild & Sons (Australia) Limited v. Lepanto Consolidated Mining Company G.R. No. 175799