Libro Quinto · Título V Capítulo IV. Rescisión de los contratos

Validly executed contracts pending performance may be rescinded by mutual consent or by judicial declaration in the cases established by this Code.

If a third party has been harmed by the rescission, the obligation shall be deemed to subsist only insofar as it relates to the rights of the harmed person.

The resolutory condition agreed upon by the contracting parties renders the contract without effect from the moment it is fulfilled, without need for judicial declaration.

The termination of a contract by effect of the implied resolutory condition must be declared judicially.

Once the rescission or termination of a contract is verified or declared, things shall return to the state in which they were before it was entered into; consequently, the parties shall restore to each other what they respectively received. Services rendered shall be appraised either to pay for them or to return the value of those not rendered.

In rescission by mutual consent, neither party may claim damage and losses, fruits or interest, if they have not expressly so agreed.

The action to seek rescission lasts one year, counted from the date of execution of the contract, unless the law fixes another term in special cases.

The provisions of Articles 1314, 1315, 1316, 1317 and 1318 of this Code are applicable to rescission and resolution.