PARAGAS v.

HEIRS OF DOMINADOR BALACANO

FACTS:
Gregorio Balacano, married to Lorenza, owned 2 parcels of land. He was already 81 years old, very weak,
could barely talk, and had been battling w/ liver disease for over a month. On his deathbed, barely a
week before he died, he allegedly signed a Deed of Absolute Sale over the lots in favor of the Paragas
Spouses, accompanied by Atty. De Guzman who proceeded to notarize the same, alleging that it was a
mere confirmation of a previous sale and that Gregorio had already paid a P 50,000.00 deposit. The
Paragas’ driver was also there to take a picture of Gregorio signing the said deed, w/ a ballpen in his
hand. There was nothing to show that the contents of the deed were explained to Gregorio. Paragas
then sold a portion of the disputed lot to Catalino. The grandson of Gregorio, Domingo, sought to annul
the sale and partition. There was no sufficient evidence to support any prior agreement or partial
execution thereof.

ISSUE:
W/N Balacano is incapacitated to enter into a contract of sale

HELD:
A person is not rendered incompetent merely because of old age; however, when such age has impaired
the mental faculties as to prevent a person from protecting his rights, then he is undeniably
incapacitated. He is clearly at a disadvantage, and the courts must be vigilant for his protection. In this
case, Gregorio’s consent was clearly absent – hence the sale was null and void. The dubious
circumstances raise serious doubts on his capacity to render consent.

Considering that the Paragas Spouses are not owners of the said properties, it only follows that the
subsequent sale thereof to Catalino – who was not in good faith – is likewise void. Further, the lots
pertained to the conjugal partnership – having been inherited by Gregorio during his marriage to
Lorenza. It cannot thus be sold w/o the latter’s consent.