THE PRICE OF DECLARING THAT THE PRICE HAS BEEN PAID (ART. 1876 OF THE CIVIL CODE)

Abstract

This commentary analyses a recent decision which held that, if the parties at the sale declare that the price has been paid, the seller will not be able to prove that he did not really receive the price. The decision relies on the wording “no proof will be admitted against this” of art. 1876, which is deemed applicable to the relationship between the parties inasmuch as it would bear witness to the evidentiary value of public instruments laid down in art. 1700. The commentary criticises this decision, since art. 1876 grants certain consequences to the clause that the price has been paid only regarding third parties, as can be seen not only in the wording of this article, but also in the sources which inspired it. The commentary also criticises the evidentiary value which the decision grants to public instruments, as well as the practical consequences which this brings along for everyday commercial practice.