Engineering Board Exam Reviewer · ECE · medium

Simulation of contract where the parties do not intend to be bound at all is called:

  1. Relative simulation, which is always valid
  2. Absolute simulation, which makes the contract void
  3. Novation
  4. Rescission

Answer

B. Absolute simulation, which makes the contract void

Solution

Article 1345–1346. In relative simulation, the parties conceal their true agreement, which binds them if lawful.

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