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The In Pari Delicto Rule (769 SCRA 636)

Applicable laws that cover this rule are Articles 1411 to 1416 of the Civil Code.
Pari Delicto means in equal fault; in a similar offense or crime; equal in guilt or
in legal fault.
This rule is expressed in the maxims dolo malo non eritur action and in
pari delicto portior est conditio defendentis. When both parties are in pari
delicto, their contract is deemed extinguished.

Where the act involved constitutes a criminal offense, the applicable


provision is Art. 1411.
o Under this article, it must be shown that the nullity of the contract
proceeds from an illegal cause or object, and the act of executing said
contract constitutes a criminal offense.

The concept of in pari delicto is not found in the Revised Penal Code but
only in Article 1411 of the Civil Code. Thus, it is a valid defense to a
prosecution for adultery and concubinage.

Moreover, this rule cannot be applied to a criminal case as it is governed by


Articles 1411 and 1412 of the Civil Code and presupposed a situation where
the parties are in culpability similarly situated in eodem loco.

General Rule: No action arises in equity or at law, from an illegal contract.


Exception: It is subject to exceptions, under which recovery may be made by
any of the following:
(a) The innocent party;

(b) The debtor who pays usurious interest;

(c) The party repudiating the void contract before the illegal purpose is
accomplished or before damage is caused to a third person and if public interest
is subserved by allowing recovery;

(d) The incapacitated party if the interest of justice so demands;

(e) The party for whose protection the prohibition by law is intended if the
agreement is not illegal per se but merely prohibited and if public policy would
be enhanced by permitting recovery; and

(f) The party for whose benefit the law has been intended such as in price ceiling
laws and labor laws.

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