CHAPTER 4 - REFORMATION OF INSTRUMENTS (ART. 1359 - 1369)

Question 1

Is a remedy in equity by means of which a written instrument is made or construed so as to express or conform to the real intention of the parties when some error or mistake has been committed

Answer 1

Reformation

Question 2

P is selling his car for 1,000,000 to G. However, both P and G agreed for a selling price of 800,000 and they executed a deed of sale. In the contract, the price of the car is 1,000,000. What is the remedy?

Answer 2

The remedy is reformation since there is already a meeting of minds

Question 3

What is the remedy when there is no meeting of minds because the consent of the other party is vitiated?

Answer 3

Annulment

Question 4

P is selling his car to G for 1,000,000. G thought that she will be buying the car for only 800,000 and they executed a deed of sale. In the contract, the price of the car is 1,000,000. What is the remedy?

Answer 4

Annulment

Question 5

Give the requisites of reformation

Answer 5

1. There must be a meeting of minds of the parties to the contract.
2. The true intention of the parties is not expressed in the instrument.
3. The reason therefor is due to mistake, fraud, inequitable conduct or accident.
4. There must be clear and convincing proof

Question 6

S sold to B his lot consisting of 1,000 square meters for 100,000 cash. However, the contract they signed showed an area of 1,200 square meters because of the clerk’s error. What is the remedy of the parties?

Answer 6

Either party may ask for the reformation of the contract so as to show the actual area of 1,000 square meters.

Question 7

Action for reformation must be brought in period of time prescribed by law. If the prescription date already expired, action to file for reformation cannot be made.

True or False?

Answer 7

True

Question 8

There must be a written contract to have a remedy of reformation.

True or False?

Answer 8

True

Question 9

Who may ask for reformation?

Answer 9

1. If the mistake was mutual, by either party, or his successors in interest, such as his heirs or assigns
2. In other cases, by the injured party, or his heirs or assigns.

Question 10

P sold his car 1 to G. Written instrument provides for the car 2, due to their mutual mistake. What is the remedy?

Answer 10

• Either or the parties may file for reformation

When a mutual mistake of the parties causes the failure of the instrument to disclose their agreement. (Art. 1361)

Question 11

P borrowed money from G worth 1,000,000. Written instrument provides that P was selling his car for 1,000,000 due to fraudulent act of G. Here, G assumes that she is buying the car of P. Who will be given the right to file a reformation of instrument?

Answer 11

• Only P may ask for the reformation of the instrument.

When one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention. (Art. 1362)

Question 12

When an instrument may be reformed according to Art. 1363?

Answer 12

When a party was mistaken and the other knew or believed that the instrument did not state their real agreement.

Question 13

When an instrument may be reformed according to Art. 1364?

Answer 13

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 intention of the parties.

Question 14

P mortgage his land in favor of G to secure his loan. However written instrument provides for a contract of sale. What is the remedy?

Answer 14

• Here, the instrument may be reformed

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 right of repurchase. (Art. 1365)

Question 15

There shall be no reformation in what following cases?

Answer 15

(1) Simple donations inter vivos wherein no condition is imposed;
(2) Wills;
(3) When the real agreement is void.

Question 16

P sold his land in favor of G. P fraudulently made a written instrument for a contract of mortgage. G signed the contract believing it was a contract of sale. What is the remedy?

Answer 16

• Here, G has a right to bring an action for the reformation of the instrument

Question 17

P sold his land in favor of G. P fraudulently made a written instrument for a contract of mortgage. G signed the contract believing it was a contract of sale. If G filed a case of foreclosing the mortgage, meaning she is imposing her right as a mortgagee. What is the remedy?

Answer 17

Here, G cannot file reformation because she is already estopped.

Art. 1367. When one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation.

Question 18

P sold his land in favor of G. P fraudulently made a written instrument for a contract of mortgage. G signed the contract believing it was a contract of sale. Here, G has a right to bring an action for the reformation of the instrument but if she dies, what will be the remedy?

Answer 18

Her children can file in favor of her or other successor of interest.

Note that P cannot file for reformation including his successors of interest