Article 1385

Rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore.

Neither shall rescission take place when the things which are the object of the contract are legally in the possession of third persons who did not act in bad faith.

In this case, indemnity for damages may be demanded from the person causing the loss. (1295)

Ang pagwawalang bisa sa kontrata ay gumagawa ng obligasyon na ibalik ang mga bagay na tinutukoy sa kontrata, kasama ng kanyang bunga, at ng halaga pati interes; dahil dito, magagawa lamang ito kung ang humingi ng pagwawalang bisa ay maibibigay ang anumang obligahin niyang ibalik.

Hindi mapapawalang bisa ang kontrata kapag ang mga bagay na kailangang ibalik ay nasa legal na pagmamay-ari na ng ibang taong wala namang masamang intensyon.

Rescission creates an obligation of mutual restitution.

When the court declares a contract rescinded, the parties must return to each other (1) object of the contract with its fruits (2) the price thereof with legal interest.

Purpose:

Restore the parties to their original situation. The law presumes that the party who received the object of the contract has enjoyed the fruits thereof while the other has used the money which is the price of the object. With respect to the fruits, the rules on possession shall govern.