Text of the provision
Art. 1398. An obligation having been annulled, the contracting parties shall restore to each other the things which have been the subject matter of the contract, with their fruits, and the price with its interest, except in cases provided by law. In obligations to render service, the value thereof shall be the basis for damages.
(1303a)
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
On annulment, the parties must restore to each other the things (with fruits) and the price (with interest); for services, their value is the basis for damages. Restoration returns the parties to their pre-contract position.
Related provisions
- Article 1397 — Who May Sue for Annulment.
- Article 1399 — Restitution by an Incapacitated Party.
Cases citing this article
- Alberto C. Hidalgo vs. Conrado Bascuguin and Evelyn Flaminiano Hidalgo, G.R. No. 233217, October 6, 2021 — read the decision on LawPhil →
- Fontana Resort and County Club, Inc. and RN Development Corporation vs. Spouses Roy S. Tan and Susan C. Tan, G.R. No. 154670, January 30, 2012 — read the decision on LawPhil →
- Unlad Resources Devt., Corp., et al. vs. Renato P. Dragon, et al, G.R. No. 149338, July 28, 2008 — read the decision on LawPhil →
- Walter Villanueva, et al. vs. Florentino Chong, et al, G.R. No. 159889, June 5, 2008 — read the decision on LawPhil →
- Catalina Jandoc-Gatdula vs. Julio Dimalanta, G.R. No. 139503, July 25, 2006 — 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.