ACTION FOR REFORMATION OF INSTRUMENT

Nature:
This remedy is grounded on the principle of equity where, in order to
express the true intention of the contracting parties, an instrument already
executed is allowed by law to be reformed. The right of reformation is
necessarily a limitation on the parol evidence rule since, when a writing is
reformed, the result is that an oral agreement is by court decree made legally
effective. (Rosello-Bentir vs. Hon. Leanda, R No. !"#$$!, A%ril !",
"&&&'
Consequently, the courts, as agencies authorized by law to exercise the
power to reform an instrument, must necessarily exercise that power
sparingly and with great caution and zealous care. (I(id'
Re)*istes+
n action for reformation of instrument under rticle !"#$ of the New Civil
Code may prosper only upon the concurrence of the following requisites:
!. There must be a meeting of the minds of the parties to a contract%
&. The instrument does not express the true intention of the parties% and
". The failure of the instrument to express the true intention of the
parties is due to mista'e, fraud, inequitable conduct or accident.
(H*i(on,*a vs. Co*rt o- A%%eals, R No. $.#$/, 0e1e2(er!3,
!$$$'
4res1ri%tion+
(ur law and )urisprudence set such limitations, among which is laches.
suit for reformation of instrument may be barred by lapse of time. The
prescriptive period for actions based upon a written contract and for
reformation of an instrument is ten *!+, years under rticle !!-- of the Civil
Code. (Rosello-Bentir vs. Hon. Leanda, R No. !"#$$!, A%ril !", "&&&'