41:27-42:52 allowed to recover at the discretion of the court if public

policy would be enhanced. Take note of the third

The question pertains to the exception. Under the Civil instance because this appeared in the Bar. In 1950, the
Code, even if the contract is illegal or unlawful, is it Bureau of Lands issued a homestead patent to A. 3
possible for a party in this contract to be able to recover years later, A sold the homestead to B…
what he delivered to the other party? May he recover if it
involves money? YES under the exceptions provided in
Arts. 1411, 1412, 1415, and 1416. The law itself
provides for the instances allowing a party to a contract
to recover even if the contract is illegal or unlawful.

Art. 1411. When the nullity proceeds from the illegality

of the cause or object of the contract, and the act
constitutes a criminal offense, both parties being in
pari delicto, they shall have no action against each
other, and both shall be prosecuted. Moreover, the
provisions of the Penal Code relative to the disposal
of effects or instruments of a crime shall be applicable
to the things or the price of the contract.

This rule shall be applicable when only one of the

parties is guilty; but the innocent one may claim what
he has given, and shall not be bound to comply with
his promise. (1305)

Art. 1412. If the act in which the unlawful or forbidden

cause consists does not constitute a criminal offense,
the following rules shall be observed:
(1) When the fault is on the part of both contracting
parties, neither may recover what he has given by
virtue of the contract, or demand the performance of
the other's undertaking;
(2) When only one of the contracting parties is at fault,
he cannot recover what he has given by reason of the
contract, or ask for the fulfillment of what has been
promised him. The other, who is not at fault, may
demand the return of what he has given without any
obligation to comply his promise. (1306)

Art. 1415. Where one of the parties to an illegal

contract is incapable of giving consent, the courts
may, if the interest of justice so demands allow
recovery of money or property delivered by the
incapacitated person.

Art. 1416. When the agreement is not illegal per se

but is merely prohibited, and the prohibition by the law
is designated for the protection of the plaintiff, he may,
if public policy is thereby enhanced, recover what he
has paid or delivered.

I’ll mention 3 instances. First, if one of the parties to the

contract was incapacitated. This is a reasonable
provision. It is possible that at the time the party entered
into the contract, he was 12 years old and he does not
know the consequences of his action. Second, when a
party to the contract repudiates the contract. However, in
this case, the party must repudiate before the
consummation of the contract or before damage is
caused to a third person. Consequently, he may be