Scribd
Upload
728 views

Chapter 4. Reformation of Instrument

The document discusses the legal concept of reformation of instruments, which allows a contract to be amended or corrected to conform to the real intention of the parties if there was a mistake, fraud, or inequitable conduct. It outlines the requisites for reformation, including that there was an agreed upon contract, the written document fails to express the true intention, and this failure was due to fraud, mistake, or accident. The document also discusses when reformation is and is not allowed under Philippine law.

Uploaded by

Alma Jane Yap Patricio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
728 views

Chapter 4. Reformation of Instrument

The document discusses the legal concept of reformation of instruments, which allows a contract to be amended or corrected to conform to the real intention of the parties if there was a mistake, fraud, or inequitable conduct. It outlines the requisites for reformation, including that there was an agreed upon contract, the written document fails to express the true intention, and this failure was due to fraud, mistake, or accident. The document also discusses when reformation is and is not allowed under Philippine law.

Uploaded by

Alma Jane Yap Patricio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

REFORMATION OF

INSTRUMENTS
ART. 1359

Reporters: Patricio and Fugoso


ART. 1359
 REFORMATION OF CONTRACT
Remedy to amend or correct the form of
a contract as a written instrument so that it
would conform to the real intention of
the parties.
 ANNULMENT OF CONTRACT
If mistake, fraud, inequitable
conduct or accident has prevented a
meeting of the minds
Reason for Reformation
REQUISITES OF REFORMATION
1. There is a contract agreed upon.
2. The written document FAILS TO EXPRESS THE TRUE
INTENTION of the parties.
3. The failure is due to fraud, mistake, inequitable conduct, or
accident.
4. The facts upon which relief by way of reformation of the
instrument is sought are put in issue by the pleadings
5. There is a clear and convincing evidence of:
TAKE NOTE:

Reformation does change the contract,


rather it aims to establish its real purpose as
manifested by the real intention of the parties.
Where a party is leasing his property to
another, the latter through fraud was able
to make him sign an absolute deed of
sale.

OR
In a contract of construction of a building, the
parties agreed that payment in dollars. The dollar
sign was used in the original draft. However what
was typewritten in the contract, occasioned by
mistake, was the peso sign.

OR
Art. 1360
The principles of the general law
on the reformation of
instruments are hereby adopted
insofar as they are not in conflict
with the provisions of this Code.
Art. 1361
When a mutual mistake of the
parties causes the failure of the
instrument to disclose their real
agreement, said instrument may
be reformed
MUTUAL MISTAKE

Mistake of fact occurs when one or


both parties in a contract have
mistaken a term that is essential to the
meaning of the contract.
MUTUAL MISTAKE

MISTAKE OF FACT MISTAKE OF LAW

REFORMATION ANNULMENT
Who has the right to ask for
Reformation?

The party who acted in good


faith or who was mistaken in
good faith. ART. 1362
Art. 1363
When one party was mistaken and
the other knew or believed that the
instrument did not state their real
agreement, the instrument may be
reformed.
MISTAKE ON ONE SIDE, FRAUD OR INEQUITABLE
CONDUCT ON THE OTHER.
Art. 1364
Ignorance, lack of skill, negligence
or bad faith etc. on the part of
THIRD PERSON

EITHER PARTY MAY ASK FOR REFORMATION


ART. 1365
If two parties agree upon the
mortgage or pledge of real or
personal property, but the
instrument states that the
property is sold absolutely or
with a right of repurchase,
reformation of the instrument
is proper.
Cases when Cases when
Reformation is reformation is NOT
Allowed Allowed
1. Simple Donations inter vivos
1. Mutual mistake
wherein no condition is imposed.

2. Mistake on one side, fraud or 2. Wills


inequitable conduct of the other.

3. Concealment of mistake by the


3.When the real agreement is void
other party.
4. Ignorance, lack of skill, negligence, 4. When one party has brought an
or bad faith on the part of the third action to enforce the instrument. (Art.
ART. 1368

(1) Either of the parties, if mistake is


mutual.
(2) In all other cases, the injured party.
(3) The heirs or successors in interest, in
lieu of the party entitled.
ART. 1369

The procedure for the reformation of


instruments shall be governed by rules of court
to be promulgated by the Supreme Court.

You might also like