Dolo incidente, or incidental fraud, is a type of fraud that does not vitiate or annul consent in a contract to the extent that the other party would not have entered into the contract at all. It occurs when the parties would have agreed to the contract even without the fraud. It can happen during the celebration of the contract or in the performance of the obligations stipulated therein.
Effects of Dolo Incidente
A contract affected by dolo incidente is considered valid. The primary legal effect of dolo incidente is that the person who employed it is obligated to pay damages.
Dolo incidente is distinguished from dolo causante (causal fraud), which is fraud that induces the other party to enter into the contract and makes the contract voidable. Incidental fraud is not a ground for annulment.
Example
The case of Woodhouse v. Halili is cited as a classic example of dolo incidente, involving fraud in the performance of an obligation under a partnership agreement.