Practice question
Two parties actually agree to mortgage property, but the signed instrument incorrectly states an absolute sale. Under Article 1365, what remedy is appropriate to express their true agreement?
- Automatic confiscation.
- A declaration that every mortgage is prohibited.
- Mandatory conversion into a donation.
- Cancellation of all unrelated contracts.
- Reformation of the instrument.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Article 1365.
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