(Asia Production Co., inc. vs. Pano, 205 SCRA 458).

Facts: Private respondents claim to be the owners of a building on a lot leased from Lucio San Andres. Respondents offered to sell the building to petitioner for 170k. The agreement and promise however was not put into writing and consequently there was a failure by the respondent to execute the Deed of Sale of the building and Deed of Assignment of the contract of lease. As a result, the petitioners removed all their properties and machineries in said lot and vacated the building and demanded the return of their partial payment from the respondents which was refused, hence the complaint. The RTC dismissed the complaint on the grounds that the complaint is barred by the statute of frauds. Issue: WON statute of frauds is applicable in this case. Held: The purpose of the statute of frauds in Art. 1403 of the Civil Code which declares certain contracts to be unenforceable unless ratified is to prevent fraud & perjury in the enforcement of obligations depending for their evidence by requiring parties to sign said contracts and transactions. I