PARAGAS v.

HEIRS OF DOMINADOR
BALACANO
Capacity to enter into a contract
  Gregorio Balacano is married to Lorenza Sumigcay
 Descendants of the spouses are the petitioners.
 Prior to his death, he was transferred to a hospital and after a
week, he bid his farewell.
 It is contested that a week before his departure, he signed a Deed
Facts of Absolute Sale over the lots in favor of the Paragas’ spouses.
 The Paragas’ were accompanied by a lawyer and notarized it and
alleged it is merely a confirmation of a previous sale, where
Gregorio Balacano is alleged to have received P 50,000 as a
deposit.
  Whether or not Gregorio Balacano has the capacity to enter into
Issue contract despite his failing state?
  Article 24 of the Civil Code tells us that in all contractual, property
or other relations, when one of the parties is at a disadvantage on
account of his moral dependence, ignorance, indigence, mental
weakness, tender age or other handicap, the courts must be vigilant
for his protection
Ruling  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.
 The Deed of Sale was allegedly signed by Gregorio on his death
bed in the hospital. Gregorio was an octogenarian at the time of the
Application alleged execution of the contract and suffering from liver cirrhosis
at that - circumstances which raise grave doubts on his physical and
mental capacity to freely consent to the contract.
Conclusion  WHEREFORE, the present petition is hereby DENIED.