This case has been cited 2 times or more.
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2015-08-17 |
LEONARDO-DE CASTRO, J. |
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| The basic characteristic of a simulated contract is that it is not really desired or intended to produce legal effects or does not in any way alter the juridical situation of the parties.[64] In Velasquez v. Court of Appeals,[65] the Court expounds on the nature of a simulated contract thus: The real nature of a contract may be determined from the express terms of the agreement and from the contemporaneous and subsequent acts of the parties thereto. When the parties do not intend to be bound at all by the purported contract, it is called an absolutely simulated contract which under the law is void and the parties may recover what they gave under the simulated contract. If, on the other hand, the parties state a false cause in the contract to conceal their real agreement, the contract is relatively simulated and the parties' real agreement may be held binding between them. | |||||