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On the other hand, the CA reversed the ruling of the CA stating that
the action has not prescribed since the applicable law is the 1950 On August 12, 2002 the Atienzas and respondent Domingo P. Espidol
Civil Code which provided that the sale of Conjugal Property without entered into a contract called Kasunduan sa Pagbibili ng Lupa na
the consent of the other spouse is voidable and the action must be may Paunang-Bayad (contract to sell land with a down payment)
brought within 10 years. Given that the transaction was in 1989 and covering the property. They agreed on a price, payable in three
the action was brought in 1997 hence it was well within the installments.
prescriptive period.
ISSUES: 1. Whether or not Rosario’s signature on the document of When the Atienzas demanded payment of the second installment of
consent to her husband Tarciano’s sale of their conjugal land to the P1,750,000.00 in December 2002, however, respondent Espidol
Fuentes spouses was forged; could not pay it. Claiming that Espidol breached his obligation, on
February 21, 2003 the Atienzas filed a complaint for the annulment
2. Whether or not the Rocas’ action for the declaration of nullity of of their agreement with damages before the Regional Trial Court
that sale to the spouses already prescribed; and (RTC)of Cabanatuan City in a Civil Case.
3. Whether or not only Rosario, the wife whose consent was not
had, could bring the action to annul that sale. Issue:
RULING: 1. The SC ruled that there was forgery due to the difference Whether or not the Atienzas were entitled to the cancellation of the
in the signatures of Rosario in the document giving consent and contract to sell they entered into with respondent Espidol on the
another document executed at the same time period. The SC noted ground of the latter’s failure to pay the second installment when it
that the CA was correct in ruling that the heavy handwriting in the fell due.
document which stated consent was completely different from the
sample signature. There was no evidence provided to explain why
there was such difference in the handwriting. Held:
2. Although Tarciano and Rosario was married during the 1950 civil
code, the sale was done in 1989, after the effectivity of the Family The Court declares the Kasunduan sa Pagbibili ng Lupa na may
Code. The Family Code applies to Conjugal Partnerships already Paunang-Bayad between petitioner Heirs of Paulino Atienza and
established at the enactment of the Family Code. The sale of respondent Domingo P. Espidol dated August 12, 2002 cancelled and
conjugal property done by Tarciano without the consent of Rosario the Heirs’ obligation under it non-existent. Regarding the right to
is completely void under Art 124 of the family code. With that, it is a cancel the contract for non-payment of an installment, there is need
given fact that assailing a void contract never prescribes. On the to initially determine if what the parties had was a contract of sale
argument that the action has already prescribed based on the or a contract to sell. In a contract of sale, the title to the property
discovery of the fraud, that prescriptive period applied to the passes to the buyer upon the delivery of the thing sold. In a contract
Fuentes spouses since it was them who should have assailed such to sell, on the other hand, the ownership is, by agreement, retained
contract due to the fraud but they failed to do so. On the other by the seller and is not to pass to the vendee until full payment of
hand, the action to assail a sale based on no consent given by the the purchase price. In the first place, since Espidol failed to pay the
other spouse does not prescribe since it is a void contract. installment on a day certain fixed in their agreement, the Atienzas
can afterwards validly cancel and ignore the contract to sell because
3. It is argued by the Spouses Fuentes that it is only the spouse, their obligation to sell under it did not arise. Since the suspensive
Rosario, who can file such a case to assail the validity of the sale but condition did not arise, the parties stood as if the conditional
given that Rosario was already dead no one could bring the action obligation had never existed.
anymore. The SC ruled that such position is wrong since as stated
above, that sale was void from the beginning. Consequently, the
land remained the property of Tarciano and Rosario despite that
sale. When the two died, they passed on the ownership of the
Delivery vendee.” This right is transferred, not by contract alone, but by
tradition or delivery. Non nudis pactis sed traditione dominia rerum
EQUATORIAL REALTY DEVELOPMENT, INC., vs. MAYFAIR THEATER, transferantur.
INC.
Posted on September 21, 2013 by winnieclaire THERE IS DELIVERY WHEN THE THING SOLD IS PLACED UNDER THE
Standard CONTROL AND POSSESSION OF THE VENDEE. — [T]here is said to be
[G.R. No. 133879. November 21, 2001.] delivery if and when the thing sold “is placed in the control and
possession of the vendee.” Thus, it has been held that while the
FACTS: execution of a public instrument of sale is recognized by law as
equivalent to the delivery of the thing sold, such constructive or
Mayfair Theater, Inc. was a lessee of portions of a building owned by symbolic delivery, being merely presumptive, is deemed negated by
Carmelo & Bauermann, Inc. Their lease contracts of 20 years (1. the failure of the vendee to take actual possession of the land sold.
which covered a portion of the second floor and mezzanine of a two- Delivery has been described as a composite act, a thing in which
storey building with about 1,610 square meters of floor area, which both parties must join and the minds of both parties concur. It is an
respondent used as a movie house known as Maxim Theater 2. two act by which one party parts with the title to and the possession of
store spaces on the ground floor and the mezzanine, with a the property, and the other acquires the right to and the possession
combined floor area of about 300 square meters also used as a of the same. In its natural sense, delivery means something in
movie house “Miramar Theater”) addition to the delivery of property or title; it means transfer of
Lease contracts contained a provision granting Mayfair a right of first possession. In the Law on Sales, delivery may be either actual or
refusal to purchase the subject properties. constructive, but both forms of delivery contemplate “the absolute
However, before the contracts ended, the subject properties were giving up of the control and custody of the property on the part of
sold for P11,300 by Carmelo to Equatorial Realty Development, Inc. the vendor, and the assumption of the same by the vendee.”
This prompted Mayfair to file a case for the annulment of the Deed
of Absolute Sale between Carmelo and Equatorial, specific ID.; NOT PRESENT IN CASE AT BAR. — [T]heoretically, a rescissible
performance and damages. contract is valid until rescinded. However, this general principle is
In 1996, the Court ruled in favor of Mayfair. not decisive to the issue of whether Equatorial ever acquired the
Barely five months after Mayfair had submitted its Motion for right to collect rentals. What is decisive is the civil law rule that
Execution, Equatorial filed an action for collection of sum of money ownership is acquired, not by mere agreement, but by tradition or
against Mayfair claiming payment of rentals or reasonable delivery. Under the factual environment of this controversy as found
compensation for the defendant’s use of the subject premises after by this Court in the mother case, Equatorial was never put in actual
its lease contracts had expired. and effective control or possession of the property because of
Maxim Theater contract expired on May 31, 1987, while the Lease Mayfair’s timely objection.
Contract covering the premises occupied by Miramar Theater lapsed
on March 31, 1989. ID.; EXECUTION OF CONTRACT OF SALE AS FORM OF CONSTRUCTIVE
The lower court debunked the claim of Equatorial for unpaid back DELIVERY HOLDS TRUE ONLY WHEN THERE IS NO IMPEDIMENT THAT
rentals, holding that the rescission of the Deed of Absolute Sale in MAY PREVENT THE PASSING OF THE PROPERTY FROM THE VENDOR
the mother case did not confer on Equatorial any vested or residual TO THE VENDEE. — From the peculiar facts of this case, it is clear
propriety rights, even in expectancy. that petitioner never took actual control and possession of the
It further ruled that the Court categorically stated that the Deed of property sold, in view of respondent’s timely objection to the sale
Absolute Sale had been rescinded subjecting the present complaint and the continued actual possession of the property. The objection
to res judicata. took the form of a court action impugning the sale which, as we
Hence, Equatorial filed the present petition. know, was rescinded by a judgment rendered by this Court in the
mother case. It has been held that the execution of a contract of sale
as a form of constructive delivery is a legal fiction. It holds true only
ISSUE: whether Equatorial was the owner of the subject property when there is no impediment that may prevent the passing of the
and could thus enjoy the fruits or rentals therefrom property from the hands of the vendor into those of the vendee.
When there is such impediment, “fiction yields to reality — the
HELD: NO. delivery has not been effected.” Hence, respondent’s opposition to
the transfer of the property by way of sale to Equatorial was a
CIVIL LAW; PROPERTY; CIVIL FRUIT OF OWNERSHIP; RENTALS. — legally sufficient impediment that effectively prevented the passing
Rent is a civil fruit that belongs to the owner of the property of the property into the latter’s hands.
producing it by right of accession. Consequently and ordinarily, the
rentals that fell due from the time of the perfection of the sale to ID.; EXECUTION OF PUBLIC INSTRUMENT GIVES RISE ONLY TO A
petitioner until its rescission by final judgment should belong to the PRIMA FACIE PRESUMPTION OF DELIVERY. — The execution of a
owner of the property during that period. public instrument gives rise, . . . only to a prima facie presumption of
delivery. Such presumption is destroyed when the instrument itself
SALES; OWNERSHIP OF THE THING SOLD IS TRANSFERRED, NOT BY expresses or implies that delivery was not intended; or when by
CONTRACT ALONE, BUT BY TRADITION OR DELIVERY. — By a other means it is shown that such delivery was not effected, because
contract of sale, “one of the contracting parties obligates himself to a third person was actually in possession of the thing. In the latter
transfer ownership of and to deliver a determinate thing and the case, the sale cannot be considered consummated.
other to pay therefor a price certain in money or its equivalent.”
Ownership of the thing sold is a real right, which the buyer acquires ID.; OBLIGATIONS AND CONTRACTS; RESCISSIBLE CONTRACTS; NOT
only upon delivery of the thing to him “in any of the ways specified ONLY THE LAND AND BUILDING SOLD SHALL BE RETURNED TO THE
in Articles 1497 to 1501, or in any other manner signifying an SELLER BUT ALSO THE RENTAL PAYMENTS PAID, IF ANY. — [T]he
agreement that the possession is transferred from the vendor to the point may be raised that under Article 1164 of the Civil Code,
Equatorial as buyer acquired a right to the fruits of the thing sold loss, petitioner must bear it in silence, since it had wrought that loss
from the time the obligation to deliver the property to petitioner upon itself. Otherwise, bad faith would be rewarded instead of
arose. That time arose upon the perfection of the Contract of Sale punished.
on July 30, 1978, from which moment the laws provide that the
parties to a sale may reciprocally demand performance. Does this ID.; ID.; ID.; ID.; APPLICABLE IN CASE AT BAR. — Suffice it to say that,
mean that despite the judgment rescinding the sale, the right to the clearly, our ruling in the mother case bars petitioner from claiming
fruits belonged to, and remained enforceable by, Equatorial? Article back rentals from respondent. Although the court a quo erred when
1385 of the Civil Code answers this question in the negative, it declared “void from inception” the Deed of Absolute Sale between
because “[r]escission creates the obligation to return the things Carmelo and petitioner, our foregoing discussion supports the grant
which were the object of the contract, together with their fruits, and of the Motion to Dismiss on the ground that our prior judgment in
the price with its interest; . . . .” Not only the land and building sold, GR No. 106063 has already resolved the issue of back rentals. On the
but also the rental payments paid, if any, had to be returned by the basis of the evidence presented during the hearing of Mayfair’s
buyer. Motion to Dismiss, the trial court found that the issue of ownership
of the subject property has been decided by this Court in favor of
ID.; SALES; CONTRACT OF SALE; RENTAL PAYMENTS MADE SHOULD Mayfair. . . . Hence, the trial court decided the Motion to Dismiss on
NOT BE CONSTRUED AS A RECOGNITION OF THE BUYER AS NEW the basis of res judicata, even if it erred in interpreting the meaning
ORDER BUT MERELY TO AVOID IMMINENT EVICTION; CASE AT BAR. of “rescinded” as equivalent to “void.” In short, it ruled on the
— The fact that Mayfair paid rentals to Equatorial during the ground raised; namely, bar by prior judgment. By granting the
litigation should not be interpreted to mean either actual delivery or Motion, it disposed correctly, even if its legal reason for nullifying
ipso facto recognition of Equatorial’s title. The CA Records of the the sale was wrong.
mother case show that Equatorial — as alleged buyer of the
disputed properties and as alleged successor-in-interest of
Carmelo’s rights as lessor — submitted two ejectment suits against
Mayfair. Filed in the Metropolitan Trial Court of Manila, the first was
docketed as Civil Case No. 121570 on July 9, 1987; and the second,
as Civil Case No. 131944 on May 28, 1990. Mayfair eventually won
them both. However, to be able to maintain physical possession of
the premises while awaiting the outcome of the mother case, it had
no choice but to pay the rentals. The rental payments made by
Mayfair should not be construed as a recognition of Equatorial as
the new owner. They were made merely to avoid imminent eviction.