Professional Documents
Culture Documents
CA
G.R. No. 118114
December 7, 1995.
FACTS: Teodoro Acap has been a tenant of a portion of land of Lot No.
1130 of the Cadastral Survey of Hinigaran, Negros Occidental since
1960. Said lot was formerly owned by Spouses Vasquez and Lorenza
Oruma,which upon their death was inherited by Felixberto. In 1975,
Felixberto sold the lot to Cosme Pido. Acap remained to be a
registered tenant of the said land and religiously paid his leasehold
rentals to Pido and thereafter, upon his death, to his widow
Laurenciana.
HELD: The Court noted that ownership and real rights are acquired
only pursuant to a legal mode or process. While title is the juridical
justification, mode is the actual process of acquisition or transfer of
ownership over a thing in question. Under Article 712 of the Civil Code,
modes of acquisition may either be original or derivative. In the instant
case, the Court determined whether delos Reyes acquired ownership
over the lot in question through any of the modes mentioned. It was
ruled that he had not acquired ownership by virtue of sale, as opposed
to the ruling of both RTC and CA. The execution of the heirs of Pido
the Declaration of Heirship and Waiver of Rights was held to be not
tantamount to sale. Such declaration is only one whereby heirs
adjudicate and divide the estate left by the decedent among
themselves as they see fit. The Court further noted that waiver of
hereditary rights is different from sale of hereditary rights. Sale of
hereditary rights presupposes an existence of a contract of sale
whereas waiver of hereditary rights is an abdication or intentional
relinquishment of a known right with a knowledge of its existence and
intention to relinquish it in favor of other persons who are co-heirs in
the succession. As delos Reyes is a stranger to the succession of
Cosme Pido, he cannot claim ownership over the lot on the sole basis
of the document executed. Hence, private respondent delos Reyes
had not acquired ownership over Lot 1130 and consequently had no
right to exact lease rentals from petitioner Acap.
Luna L. Sosa and his son, Gilbert, went to purchase a yellow Toyota
Lite Ace from the Toyota office at Shaw Boulevard, Pasig (petitioner
Toyota) on June 14, 1989 where they met Popong Bernardo who was
a sales representative of said branch. Sosa emphasized that he
needed the car not later than June 17, 1989 because he, his family,
and a balikbayan guest would be using it on June 18 to go home to
Marinduque where he will celebrate his birthday on June 19. Bernardo
assured Sosa that a unit would be ready for pick up on June 17 at
10:00 in the morning, and signed the "Agreements Between Mr. Sosa
& Popong Bernardo of Toyota Shaw, Inc., a document which did not
mention anything about the full purchase price and the manner the
installments were to be paid. Sosa and Gilbert delivered the down
payment of P100,000.00 on June 15, 1989 and Bernardo
accomplished a printed Vehicle Sales Proposal (VSP) No. 928 which
showed Sosas full name and home address, that payment is by
"installment," to be financed by "B.A.," and that the "BALANCE TO BE
FINANCED" is "P274,137.00", but the spaces provided for "Delivery
Terms" were not filled-up.
When June 17 came, however, petitioner Toyota did not deliver the Lite
Ace. Hence, Sosa asked that his down payment be refunded and
petitioner Toyota issued also on June 17 a Far East Bank check for the
full amount of P100,000.00, the receipt of which was shown by a check
voucher of Toyota, which Sosa signed with the reservation, "without
prejudice to our future claims for damages." Petitioner Toyota
contended that the B.A. Finance disapproved Sosas the credit
financing application and further alleged that a particular unit had
already been reserved and earmarked for Sosa but could not be
released due to the uncertainty of payment of the balance of the
purchase price. Toyota then gave Sosa the option to purchase the unit
by paying the full purchase price in cash but Sosa refused.
The trial court found that there was a valid perfected contract of sale
between Sosa and Toyota which bound the latter to deliver the vehicle
and that Toyota acted in bad faith in selling to another the unit already
reserved for Sosa, and the Court of Appeals affirmed the said decision.
ISSUE:
HELD:
FACTS:
Facts:
auction. After due notice and publication, the property was sold at
public action where respondent PNB was declared the winning bidder.
Petitioner sent a letter to PNB, requesting it to be granted an extension
of time to redeem/repurchase the property. Some PNB personnel
informed that as a matter of policy, the bank does not accept partial
redemption. Since petitioner failed to redeem the property, the
Register of Deeds cancelled TCT No. 32098 and issued a new title in
favor of PNB.
Meanwhile, the Special Asset Management Department (SAMD) had
prepared a statement of account of petitioners obligation. It also
recommended the management of PNB to allow petitioner to
repurchase the property for P1,574,560.oo. PNB rejected the offer and
recommendation of SAMD. It instead suggested to petitioner to
purchase the property for P2,660,000.00, in its minimum market value.
Petitioner declared that it had already agreed to SAMDs offer to
purchase for P1,574,560.47 and deposited a P725,000.00.
Issue:
Whether or not petitioner and respondent PNB had entered into a
perfected contract for petitioner to repurchase the property for
respondent.
The SC affirmed the ruling of the appellate court that there was no
perfected contact of sale between the parties.
Ruling
A contract of sale, as defined in the Civil Code, is a contract where one
of the parties obligates himself to transfer the ownership of and to
deliver a determinate thing to the other or others who shall pay
therefore a sum certain in money or its equivalent. It is therefore a
general requisite for the existence of a valid and enforceable contract
of sale that it be mutually obligatory, i.e., there should be a
concurrence of the promise of the vendor to sell a determinate thing
and the promise of the vendee to receive and pay for the property so
delivered and transferred. The Civil Code provision is, in effect, a
"catch-all" provision which effectively brings within its grasp a whole
gamut of transfers whereby ownership of a thing is ceded for a
consideration.
All three (3) essential elements of a valid sale, without which there can
be no sale, were attendant in the "disposition" and "transfer" of the
property from NDC to PUP - consent of the parties, determinate
subject matter, and consideration therefor.
Consent to the sale is obvious from the prefatory clauses of
Memorandum Order No. 214 which explicitly states the acquiescence
of the parties to the sale of the property. Furthermore, the cancellation
of NDC's liabilities in favor of the National Government constituted the
"consideration" for the sale. The defendants-appellants interpretation
that there was a mere transfer, and not a sale, apart from being
specious sophistry and a mere play of words, is too strained and
hairsplitting. For it is axiomatic that every sale imposes upon the
vendor the obligation to transfer ownership as an essential element of
the contract. Transfer of title or an agreement to transfer title for a price
paid, or promised to be paid, is the very essence of sale (Kerr & Co. v.
Lingad, 38 SCRA 524; Schmid & Oberly, Inc., v. RJL Martinez Fishing
Corp., 166 SCRA 493). At whatever legal angle we view it, therefore,
the inescapable fact remains that all the requisites of a valid sale were
attendant in the transaction between co-defendants-appellants NDC
and PUP concerning the realities subject of the present suit.
Manila Metal Container Corporation vs Philippine National Bank
[GR No. 166862, December 20, 2006]
Facts:
Petitioner was the owner of 8,015 square meters of parcel of land
located in Mandaluyong City, Metro Manila. To secure a P900,000.00
loan it had obtained from respondent Philippine National Bank,
petitioner executed a real estate mortgage over the lot. Respondent
PNB later granted petitioner a new credit accommodation. On August
5, 1982, respondent PNB filed a petition for extrajudicial foreclosure of
the real estate mortgage and sought to have the property sold at public
2.
3.
Velarde v. CA
FACTS:
The private respondent executed a Deed of Sale with Assumption of
Mortgage, with a balance of P1.8 million, in favor of the petitioners.
Pursuant to said agreements, plaintiffs paid the bank (BPI) for three (3)
months until they were advised that the Application for Assumption of
Mortgage was denied. This prompted the plaintiffs not to make any
further payment. Private respondent wrote the petitioners informing the
non-fulfillment of the obligations. Petitioners, thru counsel responded
that they are willing to pay in cash the balance subject to several