2/12/2019 Lilia B. Ada vs Baylon (2012) – Slaying cases. One digest at a time.

Slaying cases. One digest at a time.

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Lilia B. Ada vs Baylon (2012)

12 Jan 201813 Jan 2018
[G.R. No. 182435; August 13, 2012] Obligation and Contracts| Rescission

LILIA B. ADA, et.al. Petitioners, vs. FLORANTE BAYLON, Respondent.

FACTS:

Rita Baylon, was alleged to have been used the income ofbthe estate produced by parcels of land co-
owned by petitioners. They claimed that Rita took possession of the said parcels of land and
appropriated for herself the income from the same hence, this prompted petitioners to file a Complaint
for partition, accounting and damages against the former. During the pendency of the case, Rita, through
a Deed of Donation, donated a lot in favor of Florante Baylon. Petitioners filed again a petition that the
said donation be rescinded in accordance with Article 1381(4) of the Civil Code.

ISSUE:

Whether the deed of donation to Florante Baylon is subject for rescission.

HELD:

The kinds of rescissible contracts, according to the reason for their susceptibility to rescission, are the
following:

1. those which are rescissible because of lesion or prejudice;

2. those which are rescissible on account of fraud or bad faith;
3. those which, by special provisions of law, are susceptible to rescission.

In the case at bar, the lower court aptly ordered the rescission of the donation in favor of Florante. It is
undisputed that, at the time they were gratuitously conveyed by Rita, the subject lot are among the
properties that were the subject of the partition case then pending with the RTC. Rita’s failure to inform
and seek the approval of the petitioners or the RTC regarding the conveyance gave the petitioners the
right to have the said donation rescinded pursuant to Article 1381(4) of the Civil Code.

Read full Article here. (http://www.lawphil.net/judjuris/juri2012/aug2012/gr_182435_2012.html)

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2/12/2019 Lilia B. Ada vs Baylon (2012) – Slaying cases. One digest at a time.

Rescission is a remedy granted by law to the contracting parties and even to third persons, to secure the
reparation of damages caused to them by a contract, even if it should be valid, by means of the restoration of
things to their condition at the moment prior to the celebration of said contract. It is a remedy to make
ineffective a contract, validly entered into and therefore obligatory under normal conditions, by reason of
external causes resulting in a pecuniary prejudice to one of the contracting parties or their creditors.

Contracts which are rescissible are valid contracts having all the essential requisites of a contract, but by reason
of injury or damage caused to either of the parties therein or to third persons are considered defective and, thus,
may be rescinded.

Posted in: Uncategorized | Tagged: Civil Law

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