Practice question
Parties actually agree on a valid price of fifty thousand. One secretly alters the instrument to five hundred thousand; the other signs by mistake. The true agreement and 1362 fraud facts are proved. Is mutual mistake indispensable?
- No; the stated one-sided mistake and fraud framework directly applies.
- Yes; deliberate fraud can never support reformation.
- Only a later bargain could ever be corrected.
- The wrongdoer may unilaterally enforce the altered amount.
- A signed instrument makes every hidden alteration lawful.
Legal references
- Civil Code Articles748,1306,1319-1326,1356-1368,1372,1376 and1382-1389: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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