TITLE XIII ALEATORY CONTRACTS Article 2015.

If cheating or deceit is
General Provision committed by the winner, he, and subsidiarily
the operator or manager of the gambling
Article 2010. By an aleatory contract, one of
house, shall pay by way of exemplary
the parties or both reciprocally bind
damages, not less than the equivalent of the
themselves to give or to do something in
sum lost, in addition to the latter amount. If
consideration of what the other shall give or
both the winner and the loser have
do upon the happening of an event which is
perpetrated fraud, no action for recovery can
uncertain, or which is to occur at an
be brought by either. (n)
indeterminate time. (1790)
Article 2016. If the loser refuses or neglects
CHAPTER 1 Insurance
to bring an action to recover what has been
Article 2011. The contract of insurance is lost, his or her creditors, spouse, descendants
governed by special laws. Matters not or other persons entitled to be supported by
expressly provided for in such special laws the loser may institute the action. The sum
shall be regulated by this Code. (n) thereby obtained shall be applied to the
creditors’ claims, or to the support of the
Article 2012. Any person who is forbidden spouse or relatives, as the case may be. (n)
from receiving any donation under article 739
cannot be named beneficiary of a life Article 2017. The provisions of article 2014
insurance policy by the person who cannot and 2016 apply when two or more persons
make any donation to him, according to said bet in a game of chance, although they take
article. (n) no active part in the game itself. (1799a)

CHAPTER 2 Gambling Article 2018. If a contract which purports to

be for the delivery of goods, securities or
Article 2013. A game of chance is that which shares of stock is entered into with the
depends more on chance or hazard than or intention that the difference between the
skill or ability. For the purposes of the price stipulated and the exchange or market
following articles, in case of doubt a game is price at the time of the pretended delivery
deemed to be one of chance. (n) shall be paid by the loser to the winner, the
transaction is null and void. The loser may
Article 2014. No action can be maintained by
recover what he has paid. (n)
the winner for the collection of what he has
won in a game of chance. But any loser in a Article 2019. Betting on the result of sports,
game of chance may recover his loss from the athletic competitions, or games of skill may
winner, with legal interest from the time he be prohibited by local ordinances. (n)
paid the amount lost, and subsidiarily from
the operator or manager of the gambling
house. (1799a)
Article 2020. The loser in any game which is Article 2024. The lack of payment of the
not one of chance, when there is no local income due does not authorize the recipient
ordinance which prohibits betting therein, is of the life annuity to demand the
under obligation to pay his loss, unless the reimbursement of the capital or to retake
amount thereof is excessive under the possession of the property alienated, unless
circumstances. In the latter case, the court there is a stipulation to the contrary; he shall
shall reduce the loss to the proper sum. have only a right judicially to claim the
(1801a) payment of the income in arrears and to
require a security for the future income,
CHAPTER 3 Life Annuity
unless there is a stipulation to the contrary.
Article 2021. The aleatory contract of life (1805a)
annuity binds the debtor to pay an annual
Article 2025. The income corresponding to
pension or income during the life of one or
the year in which the person enjoying it dies
more determinate persons in consideration of
shall be paid in proportion to the days during
a capital consisting of money or other
which he lived; if the income should be paid
property, whose ownership is transferred to
by installments in advance, the whole amount
him at once with the burden of the income.
of the installment which began to run during
(1802a)
his life shall be paid. (1806)
Article 2022. The annuity may be constituted
Article 2026. He who constitutes an annuity
upon the life of the person who gives the
by gratuitous title upon his property, may
capital, upon that of a third person, or upon
provide at the time the annuity is established
the lives of various persons, all of whom must
that the same shall not be subject to
be living at the time the annuity is
execution or attachment on account of the
established.
obligations of the recipient of the annuity. If
It may also be constituted in favor of
the annuity was constituted in fraud of
the person or persons upon whose life or lives
creditors, the latter may ask for the execution
the contract is entered into, or in favor of
or attachment of the property. (1807a)
another or other persons. (1803a)
Article 2027. No annuity shall be claimed
Article 2023. Life annuity shall be void if
without first proving the existence of the
constituted upon the life of a person who was
person upon whose life the annuity is
already dead at the time the contract was
constituted. (1808)
entered into, or who was at that time
suffering from an illness which caused his
death within twenty days following said date.
(1804)
 TITLE XIV COMPROMISES AND representatives, and administrators or
ARBITRATIONS executors of decedent’s estates. (1810a)

CHAPTER 1 Compromises Article 2033. Juridical persons may

compromise only in the form and with the
Article 2028. A compromise is a contract
requisites which may be necessary to alienate
whereby the parties, by making reciprocal
their property. (1812a)
concessions, avoid a litigation or put an end
to one already commenced. (1809a) Article 2034. There may be a compromise
upon the civil liability arising from an offense;
Article 2029. The court shall endeavor to
but such compromise shall not extinguish the
persuade the litigants in a civil case to agree
public action for the imposition of the legal
upon some fair compromise. (n)
penalty. (1813)
Article 2030. Every civil action or proceeding
Article 2035. No compromise upon the
shall be suspended:
following questions shall be valid:
(1) If willingness to discuss a possible
(1) The civil status of persons;
compromise is expressed by one or both
(2) The validity of a marriage or a legal
parties; or
separation;
(2) If it appears that one of the parties,
(3) Any ground for legal separation;
before the commencement of the action or
(4) Future support;
proceeding, offered to discuss a possible
(5) The jurisdiction of courts;
compromise but the other party refused the
(6) Future legitime. (1814a)
offer.
The duration and terms of the Article 2036. A compromise comprises only
suspension of the civil action or proceeding those objects which are definitely stated
and similar matters shall be governed by such therein, or which by necessary implication
provisions of the rules of court as the from its terms should be deemed to have
Supreme Court shall promulgate. Said rules of been included in the same.
court shall likewise provide for the A general renunciation of rights is
appointment and duties of amicable understood to refer only to those that are
compounders. (n) connected with the dispute which was the
subject of the compromise. (1815)
Article 2031. The courts may mitigate the
damages to be paid by the losing party who Article 2037. A compromise has upon the
has shown a sincere desire for a compromise. parties the effect and authority of res
(n) judicata; but there shall be no execution
except in compliance with a judicial
Article 2032. The court’s approval is
compromise. (1816)
necessary in compromises entered into by
guardians, parents, absentee’s
Article 2038. A compromise in which there is CHAPTER 2 Arbitrations
mistake, fraud, violence, intimidation, undue
Article 2042. The same persons who may
influence, or falsity of documents, is subject
enter into a compromise may submit their
to the provisions of article 1330 of this Code.
controversies to one or more arbitrators for
However, one of parties cannot set up
decision. (1820a)
a mistake of fact as against the other if the
latter, by virtue of the compromise, has Article 2043. The provisions of the preceding
withdrawn from a litigation already Chapter upon compromises shall also be
commenced. (1817a) applicable to arbitrations. (1821a)
Article 2039. When the parties compromise Article 2044. Any stipulation that the
generally on all differences which they might arbitrators’ award or decision shall be final, is
have with each other, the discovery of valid, without prejudice to articles 2038,
documents referring to one or more but not 2039, and 2040. (n)
to all of the questions settled shall not itself
be a cause for annulment or rescission of the Article 2045. Any clause giving one of the
compromise, unless said documents have parties power to choose more arbitrators
been concealed by one of the parties. than the other is void and of no effect. (n)
But the compromise may be annulled
Article 2046. The appointment of arbitrators
or rescinded if it refers only to one thing to
and the procedure for arbitration shall be
which one of the parties has no right, as
governed by the provisions of such rules of
shown by the newly-discovered documents.
court as the Supreme Court shall promulgate.
(n)
(n)
Article 2040. If after a litigation has been
decided by a final judgment, a compromise
should be agreed upon, either or both parties
being unaware of the existence of the final
judgment, the compromise may be rescinded.
Ignorance of a judgment which may
be revoked or set aside is not a valid ground
for attacking a compromise. (1819a)

Article 2041. If one of the parties fails or

refuses to abide by the compromise, the
other party may either enforce the
compromise or regard it as rescinded and
insist upon his original demand. (n)