Article 1353. The statement of a false cause in contracts shall render them void, if it should not be proved that they were founded upon another cause which is true and lawful.
By: Kristia Capio
Artikulo 1353. Ang kontrata na may paghahayag ng walang katotohanang kadahilanan ay gagawarang walang bisa, kung ito ay hindi mapapatunayan na naka-angkla sa isang kadahilanang totoo at naaayon sa batas.
EFFECT OF FALSITY OF CAUSE
By falsity of cause is meant that the contract states a valid consideration but such statement is not true. A false cause may be erroneous or simulated. The first always produces the inexistence of a contract. If the cause is false, the contract is rendered void because the same actually does not exist. The second does not always produce this effect, because it may happen that the hidden but true cause is sufficient to support the contract. If the parties can show that there is another cause and that said cause is true and lawful, then the parties shall be bound by their true agreement.
ILLUSTRATION
Sandra sells to Ben a parcel of land. In the deed of sale, P100,000.00 is stated as the price of the land. If this statement is false, then there is no contract of sale.
However, if Ben can prove that the contract is founded upon another consideration, as when Ben has exchanged his car for the land, then the contract of barter or exchange (not sale) shall be valid. In this case, the statement of the price is simulated because it is wilfully made. Otherwise stated, there is, in fact, a real consideration but the same is not the one stated in the contract.
OBLIGATIONS AND CONTRACTS 