Page 64 - Obligations & Contracts Module 1-2

3. If one party is incapacitated, courts may allow recovery of money, property delivered by

incapacitated person in the interest of justice; pari delicto cannot apply because an

incapacitated person does not know what he is entering into; unable to understand the

consequences of his own action

4. If agreement is not illegal per se but merely prohibited & prohibition is designated for the

protection of the plaintiff – may recover what he has paid or delivered by virtue of public policy

*MUTUAL RESTITUTION IN VOID CONTRACTS

General Rule: parties should return to each other what they have given by virtue of the void

contract in case where nullity arose from defect in essential elements

1. return object of contract & fruits

2. return price plus interest

*Exception: No recovery can be had in cases where nullity of contract arose from illegality of

contract where parties are in pari delicto; EXCEPT:

a. incapacitated – not obliged to return what he gave but may recover what he has given

b. other party is less guilty or not guilty