As contemplated in Articles 1380 of the New Civil Code, is a remedy granted by law to the contracting parties and even to third persons, to secure the reparation of damages caused to them by a contract, even if this should be valid, by restoration of things to their condition at the moment prior to the celebration of the contract. It implies a contract, which even if initially valid, produces a lesion or a pecuniary damage to someone. Rescission of reciprocal obligations under Article 1191 of the New Civil Code should be distinguished from rescission of contracts under Article 1383.  Although both presuppose contracts validly entered into and subsisting and both require mutual restitution when proper, they are not entirely identical. (Ong vs. CA, G.R. No. 97347, 6 July 1999)