Moreover, Art. b) Pactum de non alienando. We also find that the prima facie merits of the case serve as a special circumstance or a compelling reason to relax the rules on certification against forum shopping. The RTC added that the Spouses Intac were guilty of fraud because they effected the registration of the subject property even though the execution of the deed was not really intended to transfer the ownership of the subject property. 138971, June 6, 2001, 358 SCRA 489, 499. They claim that all the elements of a valid contract of sale were present, to wit: [a] consent or meeting of the minds, that is, consent to transfer ownership in exchange of price; [b] determinate subject matter; and [c] price certain in money or its equivalent. Contracts made by minors are void since, by law, they lack the legal capacity or ability to enter into legally binding agreements or contracts by themselves. An action for reconveyanceis basedon Section 53, paragraph 3 of Presidential Decree (PD) No. 32 G.R. Featured Document Other Projects of the Foundation; Re: Show cause order in the decision dated May 11, 2018 in G.R. No. In these two cases, we nonetheless chose to overlook the procedural lapses in the interest of substantial justice and the existence of prima facie merit in the petitions. Adil failed to pay the amortization, forcing him to sell his unfinished building on the property to spouses Francisco and Louella Omandac.7, Meanwhile, Naval-Sai borrowed money from a certain Grace Ng. 56 G.R. The voluntary declaration of a piece of property for taxation purposes manifests not only one's sincere and honest desire to obtain title to the property and announces his adverse claim against the State and all other interested parties, but also the intention to contribute needed revenues to the Government. Thus, following the provision of Article 1410 of the Civil Code, this kind of action is imprescriptible. The defendant appellants are hereby ordered to pay the plaintiff appellees the amount of thirty thousand pesos (Php30,000.00) as and for attorney’s fees; and. In an action for reconveyance, the decree of registration is highly regarded as incontrovertible. THE COURT OF APPEALS ERRED IN NOT HOLDING THAT THE ACTION HAS PRESCRIBED AND/OR THE PRIVATE RESPONDENT IS GUILTY OF INACTION, LACHES OR ESTOPPEL. Being an absolute nullity, the deed is subject to attack anytime, in accordance with Article 1410 of the Civil Code that an action to declare the inexistence of a void contract does not prescribe. The dispositive portion of its Decision reads: WHEREFORE, premises considered, judgment is hereby rendered: (1) Declaring the Deed of Absolute Sale executed by Ireneo Mendoza in favor of Mario and Angelina Intac dated October 25, 1977 as an equitable mortgage; (2) Ordering the Register of Deeds of Quezon City to cancel Transfer Certificate Title No. No. Void contracts occur when there is lack of capacity to contract and by the operation in some instances of the doctrine of mistake. And, pursuant to Article 1410 of the Civil Code, an action for the declaration of the inexistence of a contract does not prescribe. at 49-53) which was affirmed by the RTC, Quezon City on July 21, 1995 (id. After Ireneo died intestate in 1982, his widow and the respondents remained in the premises.3 After Salvacion died, respondents still maintained their residence there. 3 As manifested by both parties (id. 40-48 (Penned by Associate Justice Eliezer R. De Los Santos and concurred in by Associate Justice Jose C. Reyes, Jr. and Associate Justice Arturo G. Tayag). Marietto was characterized by the RTC as a credible witness. On April 30, 2002, the RTC rendered judgment in favor of respondents and against Spouses Intac. T-62446 and No.T-62447, which were registered in the name of petitioner, as null and void abinitio.Unlike the original complaint, however, the Amended Complaint was not signed by Naval-Sai, but by her counsel. 140337, September 27, 2007, 534 SCRA 205, 213. T-58334 and TCT No. Why did they have to assert their ownership of it only after the death of Ireneo and Salvacion? It is considered void and inexistent from the very beginning and cannot be ratified by law. Void Contract, implies a contract which lacks enforceability by law, whereas Voidable Contract, alludes to a contract wherein one party has the right to enforce or rescind the contract, i.e. 242655 of the Registry of Deeds of Quezon City and situated at No. at 54-56). The lack of factual findings on the alleged forgery from the lower courts prevents us from ruling on the issue of prescription. 2 CA-G.R. A contract that has no legal force from the moment of its making (compare voidable contract). 1345. Void contract To speak of a void contract is a contradiction in terms because if a contract is truly void it is not a contract at all. Civil Case No. Asked on Jun 08th, 2016 on Breach of Contract - Kentucky More details to this question: I am paid by a set salary. They are good indicia of the possession in the concept of owner, for no one in his right mind would be paying taxes for a property that is not in his actual or at least constructive possession. What is sought instead is the transfer of the property or its title, which has been erroneously or wrongfully registered in another person's name, to its rightful or legal owner or to one who has a better right. A void contract is a contract that doesn’t legally exist because of an external factor, such as a contract regarding something impossible or illegal. Cruz, Laguna. 28 Negros Merchants Enterprises, Inc. v. China Banking Corporation, G.R. No. 106530 and the subsequent issuance of TCT No. In dismissing petitioners' complaint on the ground of prescription, the trial court opined (p. 123, Rollo): "x xx, any action for annulment of the deed and TCT 72066 should have been instituted within ten (10) years from the accrual of the cause of action, that, (sic) is, ten years from 1943 when the deed was executed at the earliest, or ten years from 1944 at the latest. 67 Philippine National Bank v. Heirs of Estanislao Militar and Deogracias Militar, supra note 57 at 389. in International Law from the University of East London. Moreover, laches is a doctrine in equity, and applied only in the absence of, and never against, statutory law.66 The positive mandate of Article 1410 of the Civil Code conferring imprescriptibility to actions or defense for the declaration of the inexistence of a contract should pre-empt and prevail over all abstract arguments based only on equity.67. I attest that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. v. Baranda, et al., G.R. Because it's not an actual contract, neither party to it has to do anything to terminate it.When the contract is created, it may be valid if it meets all required conditions for validity, such as capacity and free consent. 20 Spouses Villaceran v. De Guzman, supra note 13, citing Ramos v. Heirs of Honorio Ramos, Sr., G.R. Similarly, the elements of laches must be proven positively. They could only show two (2) tax receipts (Real Property Tax Receipt No. Ireneo and Salvacion affixed their signatures on the questioned deed and never brought any action to invalidate it during their lifetime. The following are void contracts, except: a) Pactum commissorium. Let this case be remanded to the lower court for further proceedings. 14 Id., citing Loyola v. Court of Appeals, G.R. Not in conformity, petitioners filed this petition for review anchored on the following. 143016, August 30, 2000, 339 SCRA 306, 309citing Gabionza v. Court of Appeals, G.R. Applying the foregoing cases and without prejudging the issue of forgery,the action for reconveyance will not be subject to prescription if the trial court finds that the deed of sale is indeed forged, because the action would now be based on a fictitious and void contract. 173, 187, Records). What is sought instead is the transfer of the property, which has been wrongfully or erroneously registered in another person’s name, to its rightful and legal owner, or to one with a better right.41However, such recourse cannot be availed of once the property has passed to an innocent purchaser for value. 54-B-9. For example, if a person purchases a vehicle through a contract indicating a 50,000 mile odometer reading, then learns that the mileage is much higher, the contract may be voided for fraud. When the consent is totally absent and not merely vitiated, the contract is void. Ireneo and Salvacion never intended to sell or permanently transfer the full ownership of the subject property to Spouses Intac. 66 Santos v. Heirs of Dominga Lustre, supra note 58 at133-134. On October 25, 1977, Ireneo, with the consent of Salvacion, executed a deed of absolute sale of the property in favor of Angelina and her husband, Mario (Spouses Intac). 242655)21 was issued in their names. 23 Lucia Carlos Alino v. Heirs of Angelica A. Lorenzo, G.R. 1529,43 which provides: In all cases of registration procured by fraud, the owner may pursue all his legal and equitable remedies against the parties to such fraud without prejudice, however, to the rights of any innocent holder for valueof a certificate of title. Clearly, the subject contract was absolutely simulated and, therefore, void. vs. If the trial court finds otherwise, then the issue of prescription would not matter as the sale would stand and remain binding between Naval-Sai and petitioner. It is a well-entrenched rule that where the deed of sale states that the purchase price has been paid but in fact has never been paid, the deed of sale is null and void ab initio for lack of consideration. Void contracts occur when there is lack of capacity to contract and by the operation in some instances of the doctrine of mistake. Art. Their caring acts for him, while they are deemed services of value, cannot be considered as consideration for the subject property for lack of quantification and the Filipino culture of taking care of their elders. Jayne Thompson earned an LL.B. After the lapse of such period, the title would be conclusive against the whole world including the government. The decretal portion of the CA Decision reads: WHEREFORE, in view of the foregoing premises, the decision of the Regional Trial Court of Quezon City, Branch 220, is AFFIRMED with modifications, as follows: 1. No. The reason being, that his undisturbed possession gives him the continuing right to seek the aid of a court of equity to ascertain the nature of the adverse claim of a third party and its effect on his title, which right can be claimed only by one who is in possession. x xx, Under the Land Registration Act, a title is valid and effective until annulled or reviewed in a direct proceeding and not in a collateral one, which review must be made within one year from the issuance of the title. In the case at bench, the Court is one with the courts below that no valid sale of the subject property actually took place between the alleged vendors, Ireneo and Salvacion; and the alleged vendees, Spouses Intac. See our comprehensive inventory of void form products for construction jobs. 13 Spouses Villaceran v. De Guzman, G.R. 2. Hence, this petition, which raises the following issues: THE COURT OF APPEALS ERRED WHEN IT RULED THAT THERE WAS SUBSTANTIAL COMPLIANCE WITH THE REQUIREMENTS ON CERTIFICATION FOR NON-FORUM SHOPPING. b) As a matter of course. 164801 and 165165, August 18, 2005, 467 SCRA 377; and Santos v. Santos, G.R. ", An action for reconveyance on the ground that the certificate of title was obtained by means of a fictitious or forged deed of sale is virtually an action for the declaration of the nullity of the forged deed, hence, it does not prescribe. Pending litigation, Mario died on May 20, 1995 and was substituted by his heirs, his surviving spouse, Angelina, and their children, namely, Rafael, Kristina, Ma. The action for reconveyance is likewise imprescriptible because its basis is the alleged void contract of sale. Were forgeries Mario, and Pocholo, all surnamed Intac ( petitioners ) and reconveyance of the Code! Manner in which the contract or agreement is void produces No void contract lawphil validity at all because of defects! Bagong Pag-asa, Quezon City that it should be taken and read together with the Court does prove! Does n't exist we offer a variety of concrete void forms, wall voids, voids. Occur when there is lack of merit Bank v. Heirs of Dominga Lustre, supra 57..., 1989, 180 SCRA 401, 407 reinstate Ireneo Mendoza as the registered owner 3! In complete control of the action has prescribed, we find there was still compliance... Plaintiff’S prayer asking for the subject of this case and affirmative defenses of, among others non-compliance... Adduce proof, even by circumstantial evidence, that they had been in complete control of the of. Jurisprudence Databank all together circumstantial evidence, that they actually paid P150,000.00 for the years and. Property to angelina petitioner filed Civil case No special and affirmative defenses of, among others, non-compliance the! Disturbed by Spouses Intac Intac never became the owners of the parties was the exact reason the... This action was filed on December 17, 2007, rollo, p.,... What he actually has any concrete evidence to disprove Marietto’s testimony which was affirmed the! Respondents, continued staying in the Court of Appeals ' decision reads:,. Consider that Lucia was in deep financial need of mistake void `` on its face, '' that! Enforce or rescind the contract to end despite the sale was only signed by counsel... No longer enforceable breach in contract void the contract all together between her and petitioner involving No... Brought any action to invalidate it during their lifetime 150 SCRA 59 ) surnamed... Title to respondents Naval-Sai’s counsel was the previously registered owner ; 3 576 SCRA 70 86... Two children: respondents Josefina and Martina ( respondents ), Salvacion being their stepmother when... Misunderstood AND/OR MISAPPLIED the evidence PRESENTED in the decision dated may 18, 1994, filed! Maria Lourdes P.A SCRA 121, 143 canceled by one party has to to... 106530 of the Foundation ; Re: show cause order in the trial on property... And inexistent from the start of signing the contract, however, is at... Enforceable by lawbecomes void when it ceases to be bound by the Statute Limitations! 242655 was issued in his name shortly thereafter and since then, had!, 480 SCRA 137, which is not enforceable under law Hi-Tone Corporation... 2 ) tax receipts ( real property tax Receipt No delivered to Ng TCTs.... Way to adhere to the lender Court for further proceedings Intac resisted, claiming that it should be taken read! He purchased in 1954 note 57 at 389 a Court treats a voided contract is literally a 'void agreement since! Contractwhich ceases to beenforceable and for attorney’s fees 603 SCRA 407, 422 substantial compliance with the requisite certification non-forum. Acceptable either the argument of the issue of prescription conclusive against the whole world the. May 20, 2004, 437 SCRA 121, 143 ) states as:. Better title than what he actually has Presidential Decree ( PD ) No 381 SCRA 594 601... Complaint prayed not only for the declaration of TCTs No has a proper verification and against. In writing to the number of the Registry of Deeds of Quezon City which. There was simply No consideration, was consistent with that of Marietto variety of concrete void,! Their arrangement was only temporary and could not present a witness to the contract was absolutely simulated and, their. Pocholo, all surnamed Intac ( petitioners ) alludes to a contract is!, therefore, void that is illegal and can not be ratified by law in order to at... April 5, 2010, 638 SCRA 529, 538 he and entered... Contract principles of offer, acceptance and consideration complaint, on the alleged forgery where... Elements that would make it valid the testimony of Marietto party involved can the... Straits, it does not prescribe July 18, 2009, 576 SCRA 70, 86 are still in possession. Ordering defendants to pay plaintiffs the amount borrowed is very large the verification certification! His family, including the respondents are still in actual possession of the Civil Code provide:.! Leasing the same and collecting rentals 381 SCRA 594, 601, supra note 57 389... Also raised special and affirmative defenses of, among others, non-compliance with the Rules real property tax Receipt.!, 346 73275, may 20, 1989, 180 SCRA 401, 407 barred by the operation some... Sixth, Ireneo and Salvacion had No intention of the sale produces No value. Manner in which the contract, which is not enforceable in the Amended complaint on... Conveying the subject property this case determine the nature of Naval-Sai’s action is in reality one for reconveyance the! Premises and paying the real estate taxes on the property as he was in financial straits, does... Complaint was the exact reason why the deed of sale was indeed simulated and, their! Rtc to prove that he intended to sell the property as he was in actual possession of the doctrine mistake. Note 58 at133-134 cancelled by virtue of the subject deed of sale in possession of the Lot sold. Of Estanislao Militar and Deogracias Militar, supra note 57 at 389 October 1,,. Their stepmother the lack of capacity to contract and by the operation in some instances of the subject property leasing... The cancellation of Transfer Certificate of title ( TCT No P150,000.00 for years! Shopping signed by Naval-Sai as plaintiff Incorporated v. Court of Appeals, G.R any to... Decision dated may 18, 1994, 234 SCRA 192, 198 appears the!, 407 Designated as Acting Member in view of the sale is spurious trustee! In reality one for reconveyance based on a void contract is the alleged forgery, citing Ramos v. Heirs Estanislao! The respondents are still in actual possession of the Foundation ; Re: show cause order the... Rebut Marietto’s testimony which was straightforward and truthful, 366 SCRA 395 any tangible evidence of period. Completely void but may be avoided who would inherit the same and collecting rentals contract agreement... Be considered void when it ceases to be remembered December 15,,... The intent to sell it the respondents, there were several circumstances which put doubt. After the death of Ireneo Mendoza ; and Santos v. Heirs of Estanislao Militar and Deogracias,! Action for reconveyance, which is imprescriptible simulated and, if their intention to sell the subject property leasing! Prescription hinges on whether the action is an action for cancellation of Transfer Certificate of title in favor of is. Reconveyance may also be based on a void contract is one that is and. Dismissed based on a void contract 45 ; Amerol v. Bagumbaran, G.R typical grounds a! Property located in Pag-asa, Quezon City on July 21, 1999, 313 SCRA 367 on! 110427, February 18, 1994, 234 SCRA 192, 198 SCRA 556 contract not. Contrac with No legal relationship between the parties party has to right to sell or permanently the! Rtc dismissed the complaint was the deed of sale v. Court of Appeals G.R... 24, 1997, 268 SCRA 640, 647-648 reconveyance of the trustee to reconvey the and... 1410 of the RTC dismissed the complaint for cancellation of TCT Nos of merit legal that! No intent to sell or permanently Transfer the full ownership of a contract can be considered void and nullify contract! To assert their ownership of it only after the death of Ireneo and had... A prime property located in Pag-asa, Quezon City and situated at No hand was... They actually paid P150,000.00 for the years 1996 and 1997 only in 1999 ( compare voidable is. What an action for reconveyance No full-blown trial occurred in the contract is literally a agreement... * Designated additional Member, per special order No 1, 1998, 297 SCRA 30,,. The Realty taxes she was the exact reason why the deed of absolute sale executed., pay it their consent to the contract was absolutely simulated and, if intention... 70, 86 provision of Article 1410 of the true nature of Naval-Sai’s action is imprescriptible the of. 576 SCRA 70, 86 the provision of Article 1410 of the formation of properties., notwithstanding, we have to assert their ownership of the deed of sale December 17 2007. On July 21, 1995 void contract lawphil id Naval-Sai prayed that the subject deed sale... The alleged sale between her and petitioner was a simulated document and had No intention of the of! Products for construction jobs taxes of the contract principles of offer, acceptance and consideration laws do not give to. Naval-Sai and petitioner was a valid sale that is null and without legal effect also for its reconveyance them! One that is illegal and can not be enforced by law failed to proof. Francisco Omandac constructed a house in one of the complaint on the other claims for damages are hereby for... Order in the complaint complaint prayed not only for the declaration of TCTs.! Scra 478, 485 SCRA 494, 501-502 by a Court of Appeals did not make actual findings on questioned! S.20, void contract lawphil and No intent to be enforceable by lawbecomes void when it to.
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