Rivera v. del Rosario
Jan 15, 2004 | Quisumbing, J. | Defective Contracts--Definition Contracts--Definition (Art. 1!0"# Distinguis$e% from &escission in Art. 11'1 (&esoution" ) &e*uisites+e is abe to return $at $e ma be obige% to restore if rescission is grante% (Art. 1!5" PETITIONERS: ADELFA S. RIVERA, CYNTHIA S. RIVERA, and JOSE S. RIVERA !ariano Rivera"s #ids$ RESPONDENTS: FIDELA DEL ROSARIO de%eased$ and &er #ids, OSCAR, ROSITA, VIOLETA, ENRI'(E JR., CARLOS, J(ANITO and ELOISA S(!!ARY: $e De &osarios one% a /arce of agricutura an% %enote% as ot 10!-C. $e De &osario i%s eceute% a 3/ecia oer of Attorne in favor of t$eir mot$er i%ea $o no $a% t$e ri)&* *o sell, +or*)a)e or %onve *&e land. i%e i%eaa borroe% as sum of 250 from &ivera. o o secure t$e oan t$e eecute% a %ee% of mortgage it$ an agreement agreement to se t$e an%. $ree %ocuments ere signe% b De &osario# Kasunduan, A Dee% of &ea 6state 7ortgage an% t$e Dee% of Absoute 3ae surre/titious /re/are% b &ivera. 8n or%er to secure com/iance it$ t$e Kasunduan t$e Kasunduan,, t$e De &osarios )ave *&e o-ners %o/ o0 *&e /ar%els TCT *o Rivera but $e %i% not ant to return t$e C. A case as fie% b t$e De &osarios to rescin% t$e Kasunduan for 0ail1re *o %o+/l -i*& *&e %ondi*ions /l1s da+a)es . $e aso ase% for t$e ann1l+en* o0 *&e Deed o0 A2sol1*e Sale d1e *o 0ra1d . 3C $e% t$at *&e contract cannot be enforce% since t$e faiure to mae t$e instament /reven*ed *&e &a//enin) o0 *&e /osi*ive s1s/ensive %ondi*ion t$at i obige t$e De &osarios to conve t$e tite. $e Court rue% t$at t$e action for r escission $a% not /rescribe%. $e /erio% for /rescri/tion runs four ears from t$e %iscover of t$e frau%, not from t$e reconing of t$e contract un%er 1'1. rescission un%er Artice 1! DOCTRINE: 9 &esoution (cae% rescission in 11'1" is a / rinci/a action t$at is base% on breac$ of a /art, $ie rescission is a subsi%iar action imite% to cases of rescission for esion un%er Artice 1!1 of t$e :CC, $ic$ e/ress enumerates t$e rescissibe contracts. •
Art. 1!5 as not e/icit mentione%; on 01,10, an% covere% a certain ot :o. 10!-A in a%%ition to ot :o. 10!-C.
FACTS:
1.
2.
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4.
5.
&es/on%ent &es/on%entss i%ea i%ea (no (no %eceas %ecease%", e%", De &osario i%s?, ere ere t$e registe registere% re% oners oners of ot :o. 10!-C 10!-C (15,02' (15,02' s*.m", a /arce of an% situate% at oombo, @uacan.
.
A Dee% of Absou Absoute te 3ae 3ae i i be issue% issue% u/on t$e t$e /amen /amentt of t$e secon% instament an% a /ost%ate% c$ec for t$e ast.
.
As /reviou /revious s state state%, %, $oever $oever,, 7aria 7ariano no $a% $a% area% area% cause% cause% t$e %raftin %rafting g of t$e Dee% Dee% of Abso Absoute ute 3ae. 3ae. @ut unie unie t$e Kasunduan t$e Kasunduan,, t$e sai% %ee% sti/uate% a /urc$ase /rice of
!.
$es $esee %ocu %ocum ments ents ere ere sign signe% e% b 7ari 7arian ano oss i%s i%s as buers an% mortgagees, on 7arc$ ', 1'!. At$oug$ i%ea inten%e% to sign on t$e Kasunduan t$e Kasunduan an% t$e &ea 6state 7ortgage, s$e ina%vertent affie% $er signature on a t$e t$ree %ocuments in t$e office 7arianos aer on 7ar10.
'.
7aria 7ariano no t$en t$en gave gave i%ea i%ea t$e t$e amoun amountt of 250 250 an% a c$ec c$ec for 200,000. 8n t$e ensuing mont$s, 7ariano gave
10. 10. E$i E$iee 7ari 7arian ano o as as mai maing ng /am /amen ents ts to
&iveras eecute% a Kasulatan sa Pagtatakwil ng Karapatan sa Pagmamay-ari ng Bahagi ng Isang Lagay na Lupa (Eritten Ab%ication of &ig$ts over a ortion of a arce of an%". our %as ater, t$e registere% t$e %ocument it$ t$e &egistr of Dee%s. o tites ere t$en issue%# in t$e name of :ieto an% t$e &ivera i%s.
insufficient, t$e cer of court of t$e oer court $as t$e res/onsibiit of maing a %eficienc assessment.$e /art fiing t$e case i be re*uire% to /a t$e %eficienc, but Guris%iction is not automatica ost. •
14. A case as fie% b t$e De &osarios to rescin% t$e Kasunduan for 0ail1re *o %o+/l -i*& *&e %ondi*ions /l1s da+a)es . $e aso ase% for t$e ann1l+en* o0 *&e Deed o0 A2sol1*e Sale d1e *o 0ra1d .
ecusive origina Guris%iction over cases invoving t$e rig$ts an% obigations of /ersons engage% in t$e management, cutivation an% use of a agricutura an%s covere% b t$e Com/re$ensive Agrarian &eform a but t$e cause of action in t$is case is /rimari for rescission of t$e Kasunduan an% nuification of t$e Dee% of 3ae an% t$e Cs issue% because of t$em. eiciano :ieto as im/ea%e% mere as a necessar /art.
15. &es/on%ents caime% t$at i%ea (2 rs o% at t$at time" never inten%e% to enter into a %ee% of sae at t$e time of its eecution an% t$at s$e signe% t$e sai% %ee% on t$e mistaen beief t$at s$e as mere signing co/ies of t$e Kasunduan. 1. etitioners argue% t$at res/on%ents cause of action $a% been barre% b ac$es or esto//e since more t$an four ears $as a/se% from t$e time t$e /arties eecute% t$e Dee% of Absoute 3ae on 7arc$ 10, 1'!, to t$e time res/on%ents institute% t$eir com/aint on ebruar 1!, 1''. 1. &C rue% in favor of res/on%ents.
$e &C $as Guris%iction, not DA&A@. DA&A@ $as
2.
Eo: t$e CA correct rue t$at t$e Dee% of Absoute 3ae is vai% insofar as ot 10!-A is concerne%H- NO, bot$ 10!-C an% 10!-A are voi%. •
@ot$ /etitioners an% res/on%ents a%mitte% t$at ot :o. 10!-A $a% been e/ro/riate% b t$e government ong before t$e Dee% of Absoute 3ae as entere% into. Aso, t$is case invoves on ot :o. 10!-C so CA $a% no Guris%iction to a%Gu%icate on ot 10!-A.
.
Eo: res/on%ents cause /rescri/tionH-NO
of action
is
barre%
b
etitioners cite Artices 1! 1, 1!'2 an% 1'1 of t$e :CC. $e conten% /rescri/tion $a% area% set in, t$e com/aint $aving been fie% in 1''2 or five ears after t$e eecution of t$e Dee% of Absoute 3ae in 7arc$ 10, 1'!. &escission of reci/roca obigations un%er Artice 11'1 of t$e :e Civi Co%e s$ou% be %istinguis$e% from rescission of contracts un%er Artice 1! of t$e same Co%e. @ot$ /resu//ose contracts vai% entere% into as e as subsisting, an% bot$ re*uire mutua restitution $en /ro/er, nevert$eess t$e are not entire i%entica. &esoution (cae% rescission in 11'1" is a /rinci/a action t$at is base% on breac$ of a /art, $ie rescission un%er Artice 1! is a subsi%iar action imite% to cases of rescission for esion un%er Artice 1!1 of t$e :CC, $ic$ e/ress enumerates t$e rescissibe contracts. T&e Kasunduan does no* 0all 1nder an o0 *&ose
1 Art. 1!. $e action for rescission is subsi%iarI it cannot be institut e% ece/t $en t$e /art suffering %amages $as no ot$er ega means to obtain re/aration for t$e same.
ISS(ES9RATIO:
2 Art. 1!'. $e action to caim rescission must be commence% it$in four ears 1.
Eo: t$e tria court ac*uire Guris%iction over t$e case, %es/ite an aege% %eficienc in t$e amount of fiing fees /ai% b res/on%ents an% %es/ite t$e fact t$at an agricutura tenant is invove% in t$e caseH- YES •
Juris%iction
as
vai%
ac*uire%
over
t$e
com/aint. 8f t$e amount of %ocet fees /ai% is
Art. 1'1. $e action for annument s$a be broug$t it$in four ears.$is /erio% s$a begin# 8n cases of intimi%ation, vioence or un%ue infuence, from t$e time t$e %efect of t$e consent ceases. In %ase o0 +is*a#e or 0ra1d, 0ro+ *&e *i+e o0 *&e dis%over o0 *&e sa+e. An% $en t$e action refers to contracts entere% into b minors or ot$er inca/acitate% /ersons, from t$e time t$e guar%ians$i/ ceases.
si*1a*ions +en*ioned in ;7, so ;7; is ina//li%a2le.
ac*uiring bin%ing force.
Ar*i%le ;< s*a*es *&a* *&e a%*ion 0or ann1l+en* o0 void %on*ra%*s s&all 2e 2ro1)&* -i*&in 0o1r ears. $is /erio% s$a begin from t$e time t$e frau% or mistae is %iscovere%. +ere, t$e frau% as %iscovere% in 1''2 an% t$e com/aint fie% in 1''. $us, t$e case is e it$in t$e /rescri/tive /erio%.
+ence, t$e agreement of t$e /arties in t$e instant case ma be set asi%e, but not because of a breac$ on t$e /art of /etitioners for faiure to com/ete /ament of t$e secon% instament . Ra*&er, *&eir 0ail1re *o do so /reven*ed *&e o2li)a*ion o0 res/onden*s *o %onve *i*le 0ro+ a%>1irin) an o2li)a*or 0or%e
4.
Eo: t$e contract can be rescin%e% base% on Artice 11'1H NO, 21*= NOTES:
A carefu rea%ing of t$e Kasunduan reveas t$at it is in t$e nature of a %on*ra%* *o sell. &es/on%ents in t$is case boun% t$emseves to %eiver a %ee% of absoute sae an% cean tite covering ot :o. 10!-C after /etitioners $ave ma%e t$e secon% instament. $is /ro mise to se as subGect to t$e fufiment of t$e sus/ensive con%ition t$at /etitioners /a an% %e/osit a /ost%ate% c$ec for t$e t$ir% instament. etitioners, $oever, faie% to com/ete /ament of t$e secon% instament. $e non-fufiment of t$e con%ition ren%ere% t$e contract to se ineffective an% it$out force an% effect. 8t must be stresse% t$at t$e breac$ contem/ate% in Artice 11'1 of t$e :e Civi Co%e is t$e obigors faiure to com/ it$ an obigation area% etant, not a faiure of a con%ition to ren%er bin%ing t$at obigation. aiure to /a, in t$is instance, is not even a breac$ but an event t$at /revents t$e ven%ors obigation to conve tite from
!oral da+a)es ma be recovere% in cases $ere one ifu causes inGur to /ro/ert, or in cases of breac$ of contract $ere t$e ot$er /art acts frau%uent or in ba% fait$. E?e+/lar da+a)es are im/ose% b a of eam/e or correction for t$e /ubic goo%, $en t$e /art to a contract acts in a anton, frau%uent, o//ressive or maevoent manner.A**orne"s fees are aoe% $en eem/ar %amages are aar%e% an% $en t$e /art to a suit is com/ee% to incur e/enses to /rotect $is interest. Ar*. ;74. &escission creates t$e obigation to return t$e t$ings $ic$ ere t$e obGect of t$e contract, toget$er it$ t$eir fruits, an% t$e /rice it$ its interestI conse*uent, it can be carrie% out on $en $e $o %eman%s rescission can return $atever $e ma be obige% to restore. :eit$er s$a rescission tae /ace $en t$e t$ings $ic$ are t$e obGect of t$e contract are ega in t$e /ossession of t$ir% /ersons $o %i% not act in ba% fait$. 8n t$is case, in%emnit for %amages ma be %eman%e% from t$e /erson causing t$e oss.
