THE STANDARD OIL COMPANY vs.

ARENAS PONENTE: ARELLANO 25 JULY 1911 FACTS: o 15 Dec 1908 Juan Arenas, Lara del Pino, and Locso, Vicente Sixto Villanueva and Siy Ho, assumed the obligation to pay Standard Oil P3,305.76 at 3 mos. From date, with interest at 1% per month o 5 April 1909 Standard Oil sued 5 debtors for nonpayment together with interest o 17 April 1909 summons served on Vicente Sixto Villanueva o 28 Aug 1909 CFI sentenced all to pay the amount with interest from 15 Dec 1908 o Elisa Torres de Villanueva, wife of Sixto, appeared and alleged his insanity and that she was appointed guardian by the court and authorized to institute proper legal proceedings for the annulment of bonds o Petition granted and trial reopened o Court decided that Sixto Villanueva executed the bond with perfect understanding of the nature and consequences of the act and gave entirely voluntary consent ISSUES: WON SUFFERING FROM MONOMIA OF WEALTH NECESSARILY WARRANTS THE CONCLUSION THAT THE PERSON DOES NOT HAVE CAPACITY TO ACT (NO) WON VILLANUEVA WAS INCAPABLE OF ENTERING INTO CONTRACT AT THE TIME THE BOND WAS EXECUTED ON 15 DEC 1908 (NO) HELD: RATIO: o No proof that he was influenced by monomia in giving the bond; no direct proof at the date of the performance of the act o On the interpretative jurisprudence of this kind of incapacity, it is a rule of constant application that is not enough that there be probability that the person was in a state of dementia at a given time

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Villanuevas wife had not deprived him of the management of his own real estate A persons believing himself to be what he is not, or an illusion, is not necessarily positive proof of insanity or incapacity to bind himself in a contract Capacity to act must be supposed to attach to a person who has not previously been declared incapable, and such capacity is presumed to continue so long as the contrary is proved