Maranan testified that he knew that the two Lots belonged to Gonzalo Realty even before he leased

then (TSN, August 27, 2002, p. 29). He, therefore, acted with malice and bad faith when he nonetheless
agreed to lease them from Ted under an understanding ,which was a false one as Maranan very well
knew, that Ted owned the property. A party who had acted in this way could not avail himself of any
equitable relief from the consequences of his improper conduct.

Third. It does not help Maranan's case that he admitted in the course of re-cross that before he leased
the property from Ted, he had seen the deed of exchange, Exhibit G, which Gonzales Realty entered into
with Acme Realty Corp. , for a swap of the lots between them. Since that document was a sample of how
Gonzalo Realty, a corporation, contacted with third persons, Maranan was familiar with the form used.
Indeed, he admitted that he read the front portion of the deed of exchange and saw that, although the
contracting party was Gonzalo Realty, the document declared that Ted, its President, represented in its
transaction.

Still, when it came to the two Lots that Maranan allegedly leased from Gonzalo Realty, he went along
with the idea that Ted would act on his own, in his personal capacity, rather than as Gonzalo Realty's
Representative