Arroyo v Berwin_Filasol_Oblicon.docx

FILASOL, RICHARD Contracts without consideration or with an illicit one have no effect whatsoever. A consideration is illicit when it is contrary to law and good morals.  Arroyo v Berwin GR No L-10551  March 3, 1917   Appeal Parties: Ignacio Arroyo – Plaintiff-appellant  Alfred Berwin – Defendant-appelle acts: acts: On Aug 14, 1914, defendant, representing Marcela Juaneza, requested plaintiff to agree to dismiss a criminal proceeding for theft against his client. Defendant  stipulated ith  stipulated ith the plaintiff that his client ould recognize the plaintiff!s onership in the land situated on "alle #an Juan, su$ur$ of Molo, municipalit% of &lo'ilo (here his client ordered the cane cut, hich land and hich cut cane are referred to in the cause for the theft) onl% if plaintiff ould as* the prosecuting attorne% to dismiss the said proceeding against his client. +laintiff complied ith the agreement and requested the prosecuting attorne% to dismiss the criminal case (ho then dismissed the case). oe-er, despite se-eral demands $% plaintiff, defendant has still not deli-ered the ritten agreement ac*noledging the onership of the descri$ed land. hus, plaintiff pra%ed for the court to render /udgment ordering the defendant to compl% ith the agreement $% causing defendant!s client Marcela Juaneza to sign the document in hich she recognizes the plaintiffs onership of the land. !he trial court" however" dismissed the complaint on the ground of illegality of the consideration of alleged contract. Issue: W/N Trial court erred in dismissin the com!laint on the round o" illealit# o" the consideration o" alleed contract$ #uling: No$ #uling: No$ Trial court decision decision a""irmed$  An agreement $% the oner oner of stolen goods to stifle the prosecution prosecution of the person charged charged ith the theft, for a pecuniar% pecuniar% or other -alua$le consideration, is manifestl% contrar% to pu$lic polic% and the due administration of /ustice. &n the interest of the pu$lic it is of the utmost importance that criminals should $e prosecuted, and that all criminal proceedings should $e instituted and maintained in the form and manner prescri$ed $% la0 and to permit an offender to escape the penalties prescri$ed $% l a $% the purchase of immunit% from pri-ate indi-iduals ould result in a manifest per-ersion of /ustice.

 Article $%&& of the Civil Code 'now Art $()*" +CC, pro-ides +CC, pro-ides that: he contracting parties ma% ma*e the agreement and esta$lish the clauses and conditions hich the% ma% dream ad-isa$le, pro-ided the% are not in contra-ention of la, morals, or pu$lic order.  Article $%& 'ld Civil Code, pro-ides Code, pro-ides that: "ontracts ithout consideration or ith an illicit one ha-e no effect hatsoe-er. A consideration is illicit hen it is contrar% to la and good morals.