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SPOUSES TONGSON Vs EMERGENCY PAWNSHOP BULA
SPOUSES TONGSON Vs EMERGENCY PAWNSHOP BULA
GR 167874
Facts:
Napala purchased from spouses Tongson their 364 square meter parcel of land
situated in Davao. The respondent prepared an Absolute Deed of Sale indicating the
consideration as P 400,000 and executed another Memorandum of Agreement in
conformity with the Deed of Sale. Upon signing, Napala paid two hundred thousand
pesos in cash to spouses and issued postdated PNB check to represent the balance.
However the check was dishonored for insufficient funds. Despite demand, Napala
failed to pay or return the purchase land. The petitioners filed for the annulment of the
contract.
The trial court ordered the annulment of the contract. Furthermore, Napala’s
action in giving the check constituted fraud that induced the spouses to enter in the sale.
Issue:
Whether or Not Napala employed fraud which induces the spouses to enter in the
sale.
Held: