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Carbonnel v. Poncio, et al.

G.R. No. L-11231, 12 May 1958


FACTS:

Petitioner Rosario Carbonnel allegedly purchased a parcel of land from respondent Jose Poncio. Such land was mortgage
to a bank which respondent has an obligation to pay. It was alleged that petitioner partially pay the respondent of the
price of the land and to assume respondent`s responsibility to recover the land. One of the conditions of the alleged sale
was that Poncio would be allowed to continue in staying in said land for one year. However, Poncio has conveyed the
same land the other respondents herein which are the spouses Mr. and Mrs. Infante. Respondents herein claims that
the previous sale between Poncio and petitioner was unenforceable due to a violation of the Statute of Fraud as the
alleged sale was never deduced to writing. Petitioner here claims ownership of the said property.

ISSUE:

Whether or not the transaction falls under the Statute of Frauds.

RULING:

No. The Statute of Frauds is applicable only to executory contracts, not to contracts that are totally or partially
performed. The reason is simple. In executory contracts there is a wide field for fraud because, unless they be in writing
there is no palpable evidence of the intention of the contracting parties. However, if a contract has been totally or
partially performed, the exclusion of parol evidence would promote fraud or bad faith, for it would enable the
defendant to keep the benefits already derived by him from the transaction in litigation, and, at the same time, evade
the obligations, responsibilities or liabilities assumed or contracted by him thereby. So that when the party concerned
has pleaded partial performance, such party is entitled to a reasonable chance to ,establish by parol evidence the truth
of this allegation, as well as the contract itself. "The recognition of the exceptional effect of part performance in taking
an oral contract out of the statute of frauds involves the principle that oral evidence is admissible in such cases to prove
both the contract and the part performance of the contract"

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