Paguyo vs.

Astorga (470 SCRA 440)

06MAR
SPOUSES DOMINGO and LOURDES PAGUYO, petitioners, vs. PIERRE ASTORGA and ST. ANDREW REALTY, INC., respondents. [G.R. No. 130982. September 16, 2005] FACTS: Petitioners owned a five-storey named Paguyo Building over the land owned by the Armas family. Pending civil case, petitioners and Armases entered into compromise agreement for the former to acquire the lot. In dire need of money, petitioner entered into agreement Receipt of Earnest Money with her ein respondent for the sale of formers property and lot which was to be purchased from Armases. Petitioner (Lourdes) later entered into Deed of Absolute Sale of Paguyo Building with the respondent, who also paid for the accrued and subsequent real propert y taxes. Petitioner filed Complaint rescission of Receipt of Earnest Money alleging there has been fraud on the part of respondents. The RTC and Court of Appeals ruled in favor of respondents with damages. ISSUE: Whether or not petitioners complaint for rescission is tenable. RULING: NO. Petitioners contentions lack merit. For one, on top of the amount received by petitioners, respondents had to shoulder accrued real estate taxes. For another, respondents believe it was the value for their money inasmuch as the building stands on a lot with a lot owner reluctant to sell it. For a third, said amount was arrived considering the depreciated value of the building in view o economic and political uncertainties that time. Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a contract, unless there has been fraud, mistake or undue influence. (Art. 1355, NCC) Gross inadequacy of the price does not affect a contract of sale, except as may indicate a defect in the consent, or the parties really intended a donation or some other act of contract. (Art.1470, NCC)