A.

Contracts which are entered into by guardians whenever the wards whom they
represent suffer lesion by more than one-fourth of the value of the things
which are the object thereof. See Art. 1381

CASE No. 1: When the lesion is only one-fourth (1/4) or less, the contract is not
rescissible. - M is the owner of a car worth P2M. G is the guardian of M. On March 8,
2013, M celebrated his 16th birthday. On the same day, G (in behalf of M) sells the
car to B for P1.5M. < si M mayroong car worth 2M then si G ang guardian ni M
nung MAR 18 ay nagcelebrate si M ng ika 16th b-day nya then in that day
binenta ni G yung car ni M kay B worth 1.5M >

DISCUSSION: The lesion here is P500, 000 (P2M - P1.5M) which is the financial
loss suffered by M arising from the sale of his car by G to M. P500, 000 is exactly
one-fourth of the value of the car of M. Since Article 1381 requires that the lesion
suffered by the ward should be more than one-fourth, the sale of the car by G to B is
not rescissible. < ang lesion dito ay 500,000 (2M-1.5M) so ang luge ni M sa
pagbenta ng car nya ni G kay M ay 500,000 so exact sya sa 1/4 ng value ng car
ni M. since sa article 1381 requires that the lesion ay hindi na pwede i-cancel
pa.>

CASE No. 2: When the lesion is more than one-fourth (1/4), the contract is
rescissible. - In Case No. 1 above, G sold the car of M to B for P1.4M. Is the contract
of sale rescissible? <kung ang lesion ay lumagpas sa ang kotrata ay pwede i-
cancel>

DISCUSSION: Ms car (which is worth P2M) was sold for P1.4M by the guardian G.
The lesion suffered by M then amounts to P600,000 (P2M P1.4M). One-fourth
of the value of the car (object of the contract of sale) is P500,000. Since the lesion
suffered by M in this case (P600,000) is more than one-fourth of the value of the car,
the contract of sale is rescissible. When M reaches the age of majority, he can file an
action to rescind the contract (Action for Rescission) on the ground that, at the time
of his minority, his guardian G sold his property with a lesion of more than one-fourth
of its value. < Ms car (which is worth P2M) ay binenta ni G worth 1.4M ang
lesion o luge ni M ay 600,000 (2M-1.4M) yung value ng car (object of the
contract of sale is 500,000 since ang luge ni M na 600,000 ay lumagpas sa sa
ng value ng car pwede ang kontrata ay ma-cancle kung si M ay nasa legal
age na pwede sya mag file an action to rescind the contract or action
rescission.

B. Contracts agreed upon in representation of absentees, if the latter suffer the

lesion stated in the preceding number. See Art. 1381 (2)

CASE No. 3: If an absentee suffers a lesion of more than one-fourth (1/4), the
contract is rescissible. - On December 20, 1988, Abby boarded the M/V Doa Paz
bound for Manila. The following day, the vessel was reported to have sunk in the
waters of Mindoro. Abby was not among the passengers who were rescued. Abby
had a 500 square-meter lot in Bulacan worth P2M. On January 16, 1992, the sister
of Abby, Aisha, sold the lot to Efren for P1.2M. On December 10, 1992, Abby
suddenly appeared in their home in Bulacan. She was rescued by officers of the
Philippine Coast Guard from an abandoned island near Taiwan. When Abby learned
about the sale of her lot, she filed an action for rescission of the contract of sale
between Aisha and Efren. Is the contract of sale rescissible? <kung ang absentee
ang magsuffer sa pagkaluge nya more than ang kontrata ay pwede i-
cancel..>

DISCUSSION: YES. This case involves the sale of the property of an absentee by a
representative, which is what is referred to under Article 1381 (2). The absentee
suffered lesion by more than one-fourth of the property amounting to P800,000 (P2M
P1.2) by reason of the contract of sale. Therefore, as soon as Abby appeared, she
has the right to file an action for rescission of the contract of sale on the ground of
lesion under Article 1381 (2). (Under Article 1386, - the rescission referred to in Nos.
1 and 2 of article 1381 shall not take place with respect to contracts approved by the
courts. In other words, if a contract entered into in behalf of a ward or absentee is
approved by the court, rescission cannot take place. This is because, if the contract
is approved by the court, the law presumes that the court is acting in the interests of
the ward or absentee even if there is lesion. (Remember: Under Article 1381, Nos. 1
& 2, the contract is rescissible only if the contract was undertaken by a guardian of
the ward, or a representative of an absentee, involving a property belonging to the
ward or absentee.