Short answer. No. Article 1411 of the Civil Code provides that when a contract is null because its cause or object is a crime, and both parties are equally at fault, neither has any action against the other. Both may also be prosecuted, and the things involved are disposed of under the Penal Code.
What the law says
When the nullity proceeds from the illegality of the cause or object of the contract, and the act constitutes a criminal offense, both parties being in pari delicto, they shall have no action against each other, and both shall be prosecuted.
Civil Code, Article 1411 — In Pari Delicto: Criminal Cause. Read the full provision →
The in pari delicto rule in criminal contracts
Article 1411 addresses contracts that are void because their cause or object is not merely illegal but actually constitutes a criminal offense. When both parties are in pari delicto — equally at fault — the law closes the courthouse doors to both. Neither has any action against the other. There is no civil remedy for returning what was given, no action for damages, and no claim for unjust enrichment. The rationale is a public policy judgment: courts will not assist parties who voluntarily entered a criminal arrangement and then regret it.
Criminal prosecution and the fate of the objects
Article 1411 does not simply leave matters at civil silence — it goes further. The statute provides that "both shall be prosecuted." The criminal law consequences are not waived by the parties' civil arrangement. Beyond prosecution, the article states that the provisions of the Penal Code on the disposal of effects or instruments of a crime shall apply to the things or price involved in the contract. This means that the items exchanged, or the money paid, may be confiscated or otherwise dealt with under penal law rather than returned to either party.
When only one party is guilty
Article 1411 distinguishes between the situation where both parties are equally guilty and the situation where only one is. This rule shall be applicable when only one of the parties is guilty; but the innocent one may claim what he has given, and shall not be bound to comply with his promise. So if one party was deceived into the arrangement, or did not know that the contract's object was criminal, the innocent party is protected — that party may recover what was given and need not perform remaining obligations. Equality of fault is the critical dividing line.
How this differs from non-criminal illegal contracts
Not all illegal contracts involve crimes. Some are simply prohibited by law but do not carry criminal penalties. Article 1411 applies specifically when the illegality rises to the level of a criminal offense. For contracts that are merely prohibited by civil or administrative law, different rules govern the consequences. The stricter treatment under Article 1411 — no recovery, criminal prosecution, and penal disposal of the objects — reflects the legislature's view that contracts whose object is a crime deserve the harshest civil response, reinforcing rather than undercutting the criminal law.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Klaus Peter Neunzig vs. Hon. Court of Appeals, Twenty, G.R. No. 260983, February 10, 2025 — read the decision on LawPhil →
- Engr. Ruben Y. Yu, doing business under the name and style Ryu Construction vs. Heirs of Manuel Sia, represented by Mayor Rosemarie H. Sia, G.R. No. 248495, July 6, 2022 — read the decision on LawPhil →
- Desiderio Ranara, Jr. vs. Zacarias De Los Angeles, Jr, G.R. No. 200765, August 8, 2016 — read the decision on LawPhil →
- Potenciano Ramirez vs. Ma. Cecilia Ramirez, G.R. No. 165088, March 17, 2006 — read the decision on LawPhil →