Text of the provision
Art. 1365. If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper.
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
If the parties agreed on a mortgage or pledge but the instrument states an absolute sale or a sale with right of repurchase, reformation is proper — a key protection against disguised loans (pactum commissorium / equitable mortgage).
Related provisions
- Article 1364 — Reformation for Drafting Error.
- Article 1366 — When Reformation Is Not Allowed.
Cases citing this article
- Sps. Firmo S. Rosario and Agnes Annabelle Dean-Rosario vs. Priscilla P. Alvar, G.R. No. 212731, September 6, 2017 — read the decision on LawPhil →
- Benjamin G. Navalta vs. Marcelo S. Muli, G.R. No. 150642, October 23, 2006 — read the decision on LawPhil →
- Alfonso D. Zamora vs. Court of Appeals, et al, G.R. No. 102557, July 30, 1996 — 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.