RUDOLF LIETZ INC vs CA

FACTS:

Buriol previously owned a parcel of unregisteredland in Palawan. In 1986, he entered into a

leaseagreement with Flaviano and Tiziana Turatello and Sani(Italians) involving a hectare of his
property. Thisagreement was for a period of 25 years, renewable foranother 25 years. After the
paying P10,000downpayment, Turatello and Sani took possession of theland. However, this
agreement was only reduced intowriting in 1987.After 11 months, Buriol sold the same parcel of
land (5hec) to Rudolf Lietz Inc for P30,000. Later on, RudolfLietz Inc discovered that Buriol
owned only 4 hectareswith one hectare covered by the lease; thus, only 3hectares were delivered
to it. Rudolf Lietz Inc instituteda complaint for the annulment of the lease againstBuriol, Sani
and the Turatellos before the RTC. RTC andCA ruled in favor of Buriol, Sani and Turatellos.

ISSUE:

WON the sale between Buriol and Rudolf Lietz Inc is a lump sum or unit price sale.

HELD:

The sale between Buriol and Rudolf Lietz is a lump sum sale. The Deed of Absolute Sale shows
that the parties agreed on the purchase price on a predetermined area of 5 hectares within the
specified boundaries and not based on a particular rate per area. In accordance with Art. 1542,
there shall be no reduction in the purchase price even if the area delivered to Rudolf Lietz Inc is
less than that states in the contract. In the instant case, the area within theboundaries as stated in
the contract shall control overthe area agreed upon in the contract.