Jessette Amihope Castor BL5A

MAXIMINO CARANTES (Substituted by Engracia Mabanta Carantes), petitioner,

vs.
COURT OF APPEALS, BILAD CARANTES, LAURO CARANTES, EDUARDO
CARANTES and MICHAEL TUMPAO, respondents,
G.R. No. L-33360
April 25, 1977

Doctrine: The prescriptive period to annul a contract on the ground of fraud is four years
from the time of the discovery of the fraud.

CASTRO, C.J:

Facts:
Mateo Carantes was the original owner of a certain parcel of land. When he died,
he was survived by his wife and six children. Subsequently, the parcel of land was
subjected for expropriation, and was later on indeed expropriated. A deed denominated
as Assignment of Right of Inheritance was executed by four of Mateo’s children assigning
Maximo Carantes their rights to inheritance over the lot. Maximo then sold the remaining
lots to the government and also registered on Mar. 16, 1940 the deed of Assignment of
Right to Inheritance. The still remaining lot was issued in the name of Maximo. A
complaint was filed against Maximo alleging that the deed be annulled on the ground of
fraud. The trial court rendered a decision stating that plaintiff’s right of action has
prescribed. The CA reversed the decision.

Issue:
Whether plaintiff’s right of action has prescribed.
Held:
Yes. The present action is one to annul the contract entitled "Assignment of Right
to Inheritance" on the ground of fraud. Article 1390 of the new Civil code provides that a
contract "where the consent is vitiated by mistake, violence, intimidation, undue
influence or fraud," is voidable or annullable. Even article 1359, which deals on
reformation of instruments, provides in its paragraph 2 that "If mistake, fraud,
inequitable conduct, or accident has prevented a meeting of the minds of the parties, the
proper remedy is not reformation of the instrument but annulment of the contract," When
the consent to a contract was fraudulently obtained, the contract is a voidable. Fraud or
deceit does not render a contract void ab initio and can only be a ground for rendering the
contract voidable or annullable pursuant to article 1390 of the new Civil Code by a proper
action in court. The present action being one to annul a contract on the ground of fraud,
its prescriptive period is four years from the time of the discovery of the fraud.