Page 56 - Obligations & Contracts Module 1-2

*CAUSES / GROUNDS FOR REFORMATION:

c. mistake by 3rd persons :

– due to ignorance, lack of skill, negligence , bad faith of drafter, clerk, typist

d. others specified by law – to avoid frustration of true intent

Requisites:

1. there is a written instrument

2. there is meeting of minds

3. true intention not expressed in instrument

4. clear & convincing proof

5. facts put in issue in pleadings

*Note: prescription period in 10 years from date of execution of instrument

*WHEN NOT AVAILABLE:

a. simple donation inter vivos

b. wills

c. when real agreement is void

d. estoppel; when party has brought suit to enforce it

*KINDS OF DEFECTIVE CONTRACTS:

1. RESCISSIBLE CONTRACTS – Those which have caused a particular economic damage

either to one of the parties or to a 3rd person and which

may be set aside even if valid. It may be set aside in whole

or in part, to the extent of the damage caused'