Reformation allows correcting a written contract to conform with the true intent of the parties if there was a mistake in reducing their agreement to writing. It requires that the written contract does not match the actual agreement due to mistake, fraud, or accident. Only the written contract is reformed, not the underlying agreement itself. Reformation can be requested by either party to correct a mutual mistake, by an injured party if the other acted fraudulently, or if one party was mistaken and the other knew but concealed it. Certain contracts like donations or wills cannot be reformed.
Reformation allows correcting a written contract to conform with the true intent of the parties if there was a mistake in reducing their agreement to writing. It requires that the written contract does not match the actual agreement due to mistake, fraud, or accident. Only the written contract is reformed, not the underlying agreement itself. Reformation can be requested by either party to correct a mutual mistake, by an injured party if the other acted fraudulently, or if one party was mistaken and the other knew but concealed it. Certain contracts like donations or wills cannot be reformed.
Reformation allows correcting a written contract to conform with the true intent of the parties if there was a mistake in reducing their agreement to writing. It requires that the written contract does not match the actual agreement due to mistake, fraud, or accident. Only the written contract is reformed, not the underlying agreement itself. Reformation can be requested by either party to correct a mutual mistake, by an injured party if the other acted fraudulently, or if one party was mistaken and the other knew but concealed it. Certain contracts like donations or wills cannot be reformed.
Reformation allows correcting a written contract to conform with the true intent of the parties if there was a mistake in reducing their agreement to writing. It requires that the written contract does not match the actual agreement due to mistake, fraud, or accident. Only the written contract is reformed, not the underlying agreement itself. Reformation can be requested by either party to correct a mutual mistake, by an injured party if the other acted fraudulently, or if one party was mistaken and the other knew but concealed it. Certain contracts like donations or wills cannot be reformed.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1/ 2
REFORMATION OF CONTRACTS (art.
1359 to 1369)
Reformation
- When, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed ----- if mistake, fraud, inequitable conduct or accident has prevented a meeting of the minds of the parties, the proper remedy is not reformation of the instrument but annulment of the contract (art. 1359) - A remedy whereby a written instrument to the contract is amended to conform to the true intentions of the parties.
- Only the instrument of the contract will be reformed, not the contract itself. - Requisites: o There is a valid contract – essential elements of a contract are present o The written instrument does not conform the true intention of the parties – the written intention is different from what the parties agreed o The non-conformity is due to mistake, fraud, inequitable conduct or accident - Reformation happens after the perfection of the contract where the disagreement between the written instrument and agreement exists.
MUTUAL MISTAKE
o When a mutual mistake of the parties causes the failure of the instrument to disclose the real agreement, said instrument may be reformed (art. 1361). o Either party may seek reformation
ONE MISTAKEN AND THE OTHER ACT ON FRAUD
o If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument (art. 1362) o The injured party has the option to ask for reformation
ONE MISTAKEN AND THE OTHER KNEW
o When one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed (art. 1363)
IGNORANCE, LACK OF SKILL, NEGLIGENCE OR BAD FAITH ON THE PART OF THE PERSON DRAFTING THE INSTRUMENT
o When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed (art. 1364)
MORTGAGE OR SALE OF REAL OR PERSONAL PROPERTY
o 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.
Contracts that cannot be reformed (art. 1366)
- Simple donations inter vivos wherein no condition is imposed
- Wills - When the real agreement is void – no contract was perfected
When a person cannot seek a reformation
- A party who enforces the instrument representing the contract cannot subsequently ask for its reformation (art. 1367) o The party who enforces the mistaken cannot seek reformation
Who may seek reformation?
- Reformation may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns (art. 1368)
