Civil/Sales/Frankneil Adducul/Case#8

G.R. No. 190823 April 4, 2011

DOMINGO CARABEO

vs.

SPOUSES NORBERTO and SUSAN DINGCO

Facts:

On July 10, 1990, Domingo Carabeo (petitioner) entered into a contract denominated as Kasunduan
sa Bilihan ng Karapatan sa Lupa (kasunduan) with Spouses Norberto and Susan Dingco
(respondents) whereby petitioner agreed to sell his rights over a 648 square meter parcel of
unregistered land situated in Purok III, Tugatog, Orani, Bataan to respondents for P38,000.

Upon the signing of the contract, the respondents paid an initial amount of P10,000 and the remaining
balance would be paid on September 1990. However, when the respondents were about to pay the
balance, the petitioner refused to accept the amount due to an on-going dispute over the land.
Nevertheless, the respondents occasionally gave the petitioner small sums of money which totaled
P9,100.

Despite the respondents insistence of paying the remaining balance of P19,800, the petitioner
remained firm in his refusal. He reasoned that he would register the land first. However, when the
dispute was finally settled and the registration of the land was made, the petitioner still declined to
accept the payment. Thus, forcing the respondents to file a complaint before the Katarungan
Pambarangay. Nevertheless, the parties were not able to reach a settlement. Hence, the filing of a
complaint for specific performance before the RTC.

In the petitioners answer in the complaint, he alleged that the sale was void for lack of object certain.
The kasunduannot having specified the metes and bounds of the land. In addition to that, he alleged
that assuming that the validity of the kasunduan is upheld, the respondent failed to comply with their
reciprocal obligation in paying the balance of the P28,000 on September 1900. Thus, forcing him to
accept the installment payments.

After the case was submitted for decision, the petitioner passed away. However, the records do not
show that petitioners counsel informed the lower court of his death and that proper substitution was
effected. The RTC ruled in favor of the respondents ordering them to sell their rights over the land and
to pay the costs of suit. The CA affirmed the decision of the lower court.

Issues:

Whether or not the elements of a valid contract are present in this case.
Whether or not there is a valid contract despite the absence of spousal consent
 Civil/Sales/Frankneil Adducul/Case#8

Whether or not the death of the petitioner causes dismissal of the action filed by the
respondents.

Ruling:

1. The elements of a valid contract are present in this case.

Even though the kasunduan did not specify the technical boundaries of the property, it does not
render the sale a nullity. The requirement that a sale must have for its object a determinate thing is
satisfied as long as, at the time the contract is entered into, the object of the sale is capable of being
made determinate without the necessity of a new or further agreement between the parties.

2. The issue as to whether or not there is a valid contract despite the absence of spousal consent was
raised only on appeal, hence, will not be considered, in the present case, in the interest of fair play,
justice and due process.

3. The death of the petitioner would not cause the dismissal of the action. the respondents are pursuing
a property right arising from the kasunduan, whereas petitioner is invoking nullity of the kasunduan to
protect his proprietary interest. Since the action involves property rights, it survives. Assuming
arguendo, however, that the kasunduan is deemed void, there is a corollary obligation of petitioner to
return the money paid by respondents.

It bears noting that trial on the merits was already concluded before petitioner died. Since the trial
court was not informed of petitioners death, it may not be faulted for proceeding to render judgment
without ordering his substitution. Its judgment is thus valid and binding upon petitioners legal
representatives or successors-in-interest, insofar as his interest in the property subject of the action is
concerned.