Short answer. No. Article 1171 of the Civil Code states that any waiver of an action for future fraud is void. The clause has no legal effect — you cannot be made to give up your right to pursue a claim for fraud before the fraud has even occurred.
What the law says
Any waiver of an action for future fraud is void.
Civil Code, Article 1171 — Waiver of Future Fraud Is Void. Read the full provision →
The clause is void — it cannot bind you
Article 1171 of the Civil Code contains two rules. The first is that responsibility arising from fraud is demandable in all obligations — meaning no type of contract is exempt from fraud liability. The second is the rule that directly answers your question: any waiver of an action for future fraud is void. A clause in a contract that purports to make you give up the right to sue for fraud committed in the future is legally unenforceable from the moment it is written. You do not need to do anything to nullify it — it is null on its face.
Why the law does not allow this waiver
Philippine law treats fraud differently from ordinary negligence. A party can, within limits, agree to bear certain risks or release the other side from liability for accidental harm. Fraud is different — it is a deliberate wrong. Allowing a party to extract a pre-emptive waiver of fraud claims would create a one-sided arrangement where one contracting party could deceive the other with impunity, protected by language buried in the contract. The law refuses to honor that arrangement. The policy is clear: no one can purchase immunity from their own bad faith before the bad faith occurs.
The contrast with waivers for past fraud
The rule in Article 1171 applies to future fraud — fraud that has not yet happened when the waiver is signed. The situation is different when fraud has already occurred and both parties are aware of it. A party who has been defrauded may choose, with full knowledge of what happened, to waive the resulting claim. That waiver — made with eyes open, after the fact — can be valid. What the law forbids is the prospective waiver: the attempt to eliminate a fraud claim before the fraud has taken place, when the victim cannot yet know what wrong is being excused.
What this means if you signed such a clause
If the contract you signed contains language waiving your right to sue for fraud — however it is phrased — that specific clause is void and you are not bound by it. The rest of the contract remains in effect; only the offending clause is struck. If fraud has already occurred and you are considering whether to pursue a claim, the existence of this clause in the contract should not deter you. The clause cannot block your claim. What matters is the underlying conduct, the harm you suffered, and whether the elements of fraud are present. A lawyer can assess your specific situation and advise you on the strength and avenue for a fraud claim.
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.
- Fedman Development Corporation vs. Federico Agcaoili, G.R. No. 165025, August 31, 2011 — read the decision on LawPhil →