Text of the provision
Art. 1346. An absolutely simulated or fictitious contract is void. A relative simulation, when it does not prejudice a third person and is not intended for any purpose contrary to law, morals, good customs, public order or public policy binds the parties to their real agreement.
(n)
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
An absolutely simulated contract is void. A relatively simulated one binds the parties to their real agreement, provided it does not prejudice third persons or violate law, morals, good customs, public order, or public policy.
Related provisions
- Article 1345 — Simulation of Contracts.
- Article 1347 — Object of Contracts.
Cases citing this article
- Felix Chingkoe and Rosita Chingkoe vs. Faustino Chingkoe and Gloria Chingkoe, G.R. No. 244076, March 16, 2022 — read the decision on LawPhil →
- ATCI Overseas Corporation and Amalia G. Ikdal vs. Asset Pool A (SPV-AMC), Inc, G.R. No. 250523, June 28, 2021 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.