Practice question
An agreement is not illegal per se but is merely prohibited by a law designed to protect the plaintiff. The court finds that allowing recovery would enhance public policy. The defendant claims Article5 always requires the protected plaintiff to forfeit everything delivered. Which is correct?
- Article1416 permits the protected plaintiff’s recovery under those conditions
- Every prohibited transaction requires universal forfeiture
- The protection statute has no relevance
- Recovery necessarily ratifies the prohibited agreement
- Only the defendant may decide public policy
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles5 and1416–1422.
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