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The subcontract agreement and deed of assignment between Gonzalo and Tarnate for a road construction project are void contracts as Gonzalo illegally subcontracted the project without approval from the DPWH Secretary. As both parties are considered at fault (in pari delicto), they cannot normally recover from each other. However, in this case the court allows Tarnate to recover the 10% retention fee from Gonzalo to prevent unjust enrichment, as an exception to the in pari delicto doctrine, since Tarnate prov

Author

Rommel Mancenido Lagumen

Language

EN