Article 1388. Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them.
If there are two or more alienations, the first acquirer shall be liable first, and so on successively.
By: Kristia Capio
Artikulo 1388. Kung sino man ang nakakuha na may masamang hangarin sa bagay na inalis na may panlilinlang sa mga nagpapautang, ay magbabayad duon sa huli ukol sa mga damyos na kanyang sinapit dahil sa pagaalis, kung, sa anu man kadahilanan, iyon ay imposible na naisauli niya sa kanila.
Kapag mayroon dalawa o mahihgit pang pag aalis, ang naunang nakakuha ng pagaari ang siyang mananagot doon sa nauna at doon sa ibang magkakasunod.
The purchaser in bad faith, who acquired the object of the contract alienated in fraud of creditors, must return the same if the sale is rescinded (see Art. 1383.) and should it be impossible for him to return it due to any cause, he must indemnify the former.
Should there be two or more alienations, the first acquirer shall be liable first, and so on successively.
EXAMPLES:
(1) Sandy sold her car to Ben in order to avoid the payment of her debt to Cathy, her creditor. Ben knew of Sandy’s purpose.
If the sale is rescinded, Ben must return the car. Should the car be destroyed with or without his fault, then Cathy is entitled to be indemnified for damages by Ben.
(2) Suppose, Ben transferred the car to Dan who also acted in bad faith. Then Dan sold it to Emma who did not know of the purpose behind the previous conveyance.
As the first acquirer. Ben is liable first. If he cannot pay, then Dan will be liable.
If Ben acted in good faith, the good or bad faith of Dan is not important, except where Dan connived with Sandy to make Ben a mere innocent intermediary in which case Dan can be held liable.
OBLIGATIONS AND CONTRACTS 