Text of the provision
Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him. The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period. This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with articles 1385 and 1388 and the Mortgage Law.
(1124)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
In reciprocal obligations, the power to rescind is implied when one party fails to perform. The injured party may choose fulfillment or rescission, with damages either way, and may switch to rescission if fulfillment becomes impossible. The court grants rescission unless there is just cause to fix a period — and the rights of third persons are protected. One of the most litigated articles in contract law.
Related provisions
- Article 1190 — Effect of a Resolutory Condition Fulfilled.
- Article 1192 — Both Parties in Breach.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.