Text of the provision
Art. 2018. If a contract which purports to be for the delivery of goods, securities or shares of stock is entered into with the intention that the difference between the price stipulated and the exchange or market price at the time of the pretended delivery shall be paid by the loser to the winner, the transaction is null and void. The loser may recover what he has paid.
(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
A purported delivery contract entered into with the intent that only the price difference be paid (a pure difference/futures wager) is void, and the loser may recover what he paid.
Related provisions
- Article 2017 — Bettors on a Game of Chance.
- Article 2019 — Betting on Games of Skill.
Cases citing this article
- Safic Alcan & Cie vs. Imperial Vegetable Oil Co., Inc, G.R. No. 126751, March 28, 2001 — read the decision on LawPhil →
- NM Rothschild and Sons (Australia) Limited vs. Lepanto Consolidated Mining Company, G.R. No. 175799, November 28, 2011 — 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.