RUIZ V. CA April 25, 2003 G.R. No.

118749 (Vices of will: Undue Influence) FACTS: On 3 February 1984, the spouses Lorenzo and Lorenza Francisco ("petitioners") and Engineer ien!enido "# $ercado ("respondent") entered into a "ontract o% &e!e'op(ent %or the de!e'op(ent into a subdi!ision o% se!era' parce's o% 'and in )a(panga# *nder the "ontract, respondent agreed to underta+e at his e,pense the de!e'op(ent -or+ %or the Franda .i''age /ubdi!ision# 0espondent co((itted to co(p'ete the construction -ithin 12 (onths# 0espondent a'so ad!anced )133,333#33 %or the initia' e,penses o% the de!e'op(ent -or+# 4n return, respondent -ou'd recei!e 536 o% the tota' gross sa'es o% the subdi!ision 'ots and other inco(e o% the subdi!ision# 0espondent a'so en7oyed the e,c'usi!e and irre!ocab'e authority to (anage, contro' and super!ise the sa'es o% the 'ots -ithin the subdi!ision# 8he "ontract re9uired respondent to sub(it to petitioners, -ithin the %irst 15 days o% e!ery (onth, a report on pay(ents co''ected %ro( 'ot buyers -ith copies o% a'' the contracts to se''# :o-e!er, respondent %ai'ed to sub(it the (onth'y report# Fro( 1; October 1985 to so(eti(e in $arch 198;, -ithin the 12<(onth period granted to respondent, petitioners a'so contracted a certain =icasio 0osa'es, /r# to underta+e the partia' de!e'op(ent o% the subdi!ision# On 1; >u'y 198;, 0osa'es sub(itted his acco(p'ish(ent report# On the sa(e day, petitioners de(anded that respondent sub(it -ithin 15 days an accounting o% his operation o% the subdi!ision %ro( the beginning o% the pro7ect up to 15 >u'y 198;# )etitioners a'so re9uested %or copies o% contracts to se'', receipts o% co''ections and receipts o% disburse(ents %or de!e'op(ent e,penses# On 5 ?ugust 198;, respondent secured %ro( the :u(an /ett'e(ents 0egu'atory "o((ission (:/0") an e,tension o% ti(e to %inish the subdi!ision de!e'op(ent unti' 33 >u'y 1982# On 8 ?ugust 198;, petitioners instructed respondent to stop se''ing subdi!ision 'ots and co''ecting pay(ents %ro( 'ot buyers and de(anded the turno!er to the( o% a'' o%%icia' receipts in the na(e o% Franda .i''age /ubdi!ision# =onethe'ess, respondent continued to co''ect pay(ents %ro( 'ot buyers unti' /epte(ber 198;#

On 18 /epte(ber 198;, re9uiring respondent to sub(it a proper state(ent o% co''ections -ith supporting receipts and docu(ents, and reiterated that respondent shou'd stop se''ing subdi!ision 'ots and co''ecting pay(ents %ro( 'ot buyers# On 2 October 198;, petitioners in%or(ed the :/0" o% the 'ot buyers@ co(p'aints that respondent co(p'eted on'y 56 o% the de!e'op(ent -or+ and that he -as issuing t-o +inds o% receipts# )etitioners a'so c'ai(ed that respondent -as in serious !io'ation o% the "ontract because he did not proper'y re(it to petitioners the proceeds %ro( the 'ot sa'es# 4n a 'etter dated 15 =o!e(ber 198;, respondent re9uested petitioners to pro!ide hi( -ith the %or(at o% the state(ent o% co''ections they -anted or, a'ternati!e'y, to send an accountant to audit his records# On 13 >anuary 1982, petitioners granted respondent an authority to resu(e the sa'e o% subdi!ision 'ots and the co''ection o% pay(ents sub7ect to certain conditionsA (1) a'' co''ections sha'' be deposited in a 7oint account -ith "hina an+ing "orporation, /an Fernando, )a(panga branchB (1) -ithdra-a's sha'' be 'i(ited to 536 o% the tota' co''ections or to respondent@s share, -hich can on'y be used %or de!e'op(ent e,penses, and any -ithdra-a' sha'' be sub7ect to the appro!a' o% petitionersB (3) on'y Franda .i''age /ubdi!ision receipts, du'y countersigned by petitioners, sha'' be usedB (4) co''ections sha'' be sub7ect to a -ee+'y or (onth'y auditB and (5) any !io'ation o% these conditions sha'' resu't in the auto(atic cance''ation o% the authority# On 18 >anuary 1982, respondent in%or(ed :/0" that he had stopped de!e'op(ent -or+ on the subdi!ision because the conditiona' authority issued by petitioners !io'ated the "ontract# /peci%ica''y, respondent re%erred to the %o''o-ing pro!isions o% the "ontract that the conditiona' authority contra!enedA (1) his e,c'usi!e and irre!ocab'e right to (anage, contro', and super!ise the sa'e o% 'otsB (1) his authority to issue receipts as the de!e'oper -ithout the participation o% the 'ando-nersB and (3) his right to -ithdra- his 536 share -ithout the appro!a' o% the 'ando-ners# 0espondent attributed the de'ay in the de!e'op(ent o% the subdi!ision to petitioners -ho contracted the ser!ices o% another person during the e%%ecti!ity o% the "ontract# )etitioners a'so stopped respondent, -ithout 7usti%ication, %ro( se''ing the 'ots and co''ecting pay(ents %ro( 'ot buyers# On 12 February 1982, respondent %i'ed -ith the tria' court an action to rescind the "ontract -ith a prayer %or da(ages# /ubse9uent'y, petitioners obtained per(ission %ro( the :ousing and

Land *se 0egu'atory subdi!ision#

oard to ta+eo!er the de!e'op(ent o% the

8he tria' court ru'ed that petitioners breached the "ontract# On appea', the "ourt o% ?ppea's adopted the %indings o% %act o% the tria' court# ISSUE: Chether the conditiona' authority (percei!ed by the respondent) issued by petitioners !io'ated the "ontract, thus, causing the de'ay# ECISI!N: =o# 8he tria' and appe''ate courts %ound that the :/0" granted respondent an e,tension o% up to 33 >u'y 1982 to co(p'ete the de!e'op(ent -or+ under the "ontract# )etitioners did not contest :/0"@s e,tension o% ti(e to respondent# 8hus, the "ourt %inds no (erit in petitioner@s c'ai( that respondent incurred de'ay in the per%or(ance o% his ob'igation under the "ontract# ?t that ti(e, the 'a- authorized :/0" to grant e,tensions o% ti(e %or co(p'etion o% subdi!ision pro7ects# 8he 'a- pro!ides that de'ay (ay e,ist -hen the ob'igor %ai's to %u'%i'' his ob'igation -ithin the ti(e e,press'y stipu'ated# 4n this case, the :/0" e,tended the period %or respondent to %inish the de!e'op(ent -or+ unti' 33 >u'y 1982# 0espondent did not incur de'ay since the period granted hi( to %u'%i'' his ob'igation had not e,pired at the ti(e respondent %i'ed the action %or rescission on 12 February 1982#

E"A CRUZ V. SIS!N F#$r%&r' 17, 2005 G.R. No. 1(3770 (Fraud: Kinds; How Committed) FACTS: 4nitia''y, the co(p'ainant in this case -as Epi%ania /# &e'a "ruz, but she died on =o!e(ber 1, 199;, -hi'e the case -as pending in the "ourt o% ?ppea's# *pon her de(ise, she -as substituted by her niece, Laureana .# ?'berto# Epi%ania c'ai(ed that so(eti(e in 1991, she disco!ered that her rice 'and in /a'o(ague /ur, uga''on, )angasinan, has been trans%erred and registered in the na(e o% her nephe-, Eduardo "# /ison, -ithout her +no-'edge and consent, purported'y on the strength o% a &eed o% /a'e she e,ecuted on =o!e(ber 14, 1989# Epi%ania thus %i'ed a co(p'aint be%ore the 0egiona' 8ria' "ourt o% Lingayen, )angasinan, to dec'are the deed o% sa'e nu'' and !oid# /he a''eged that Eduardo tric+ed her into signing the &eed o% /a'e, by inserting the deed a(ong the docu(ents she signed pertaining to the trans%er o% her residentia' 'and, house and ca(arin, in %a!or o% &e(etrio, her %oster chi'd and the brother o% Eduardo# 0espondents, spouses Eduardo and Eu%e(ia /ison, denied that they e(p'oyed %raud or tric+ery in the e,ecution o% the &eed o% /a'e# 8hey c'ai(ed that they purchased the property %ro( Epi%ania %or )13,333#33# 8hey a!erred that Epi%ania cou'd not ha!e been decei!ed into signing the &eed o% ?bso'ute /a'e because it -as du'y notarized be%ore =otary )ub'ic $a,i(o .# "uesta, >r#B and they ha!e co(p'ied -ith a'' re9uisites %or its registration, as e!idenced by the 4n!estigation 0eport by the &epart(ent o% ?grarian 0e%or( (&?0), ?%%ida!it o% /e''erD8rans%eror, ?%%ida!it o% uyerD8rans%eree, "erti%ication issued by the )ro!incia' ?grarian 0e%or( O%%icer ()?0O), Letter %or the /ecretary o% ?grarian 0e%or(, "erti%icate ?uthorizing )ay(ent o% "apita' Eains 8a,, and the pay(ent o% the registration %ees# /o(e o% these docu(ents e!en bore the signature o% Epi%ania, proo% that she agreed to the trans%er o% the property#

0espondents asserted that they ha!e been in open, continuous, and peace%u' possession o% the 'and since =o!e(ber 14, 1989B in %act, they ha!e been recei!ing the %ruits and produce o% the 'and since they purchased the sa(e, as corroborated by $anue' "# 0a%on, the careta+er o% the property# On $arch 13, 199;, the tria' court rendered 7udg(ent in %a!or o% Epi%ania# On appea', the "? re!ersed the tria' courtFs decision# :ence, this appea'# ISSUE: Chether %raud attended the e,ecution o% a contract# ECISI!N: =o# ?'though Epi%ania -as 29 years o'd at the ti(e o% the e,ecution o% the assai'ed contract, her age did not i(pair her (enta' %acu'ties as to pre!ent her %ro( proper'y and inte''igent'y protecting her rights# E!en at 83 years, she e,hibited (enta' astuteness -hen she testi%ied in court# 4t is, there%ore, inconcei!ab'e %or her to sign the assai'ed docu(ents -ithout ascertaining their contents, especia''y i%, as she a''eges, she did not direct Eduardo to prepare the sa(e# O!er-he'(ing docu(entary e!idence presented by the respondents pro!e that the spouses /ison bought the property %ro( Epi%ania# 8hese docu(ents are too !aried %ro( each other to ha!e been acco(p'ished through tric+ery and %raud# /he cou'd not ha!e signed a'' these docu(ents, inc'uding that o% &e(etrioFs and not in9uire as to the contents thereo%, i% as she a''eged, the 9uestioned deed o% sa'e -as surreptitious'y inserted -ith that intended %or &e(etrio# 4ncidenta''y, e!en &e(etrio hi(se'% ad(itted that the sub7ect property -as so'd by Epi%ania to Eduardo and that the 'atter had been in open and continuous possession thereo% since =o!e(ber 1989#

RURA" )AN* !F STA. +ARIA V. CA S#p,#-$#r 14, 1999 G.R. No. 110(72 &./ G.R. No. 111201 (Fraud: Kinds; How committed) FACTS: ? &eed o% ?bso'ute /a'e -ith ?ssu(ption o% $ortgage -as e,ecuted bet-een $anue' ehis as !endorDassignor and 0ayandayan and ?rceo as !endeesDassignees %or the su( o% )153,333#33# On the sa(e day, 0ayandayan and ?rceo together -ith $anue' ehis e,ecuted another ?gree(ent e(bodying the rea' consideration o% the sa'e o% the 'and in the su( o% )1,433,333#33# 8herea%ter, 0ayandayan and ?rceo negotiated -ith the principa' stoc+ho'der o% the ban+, Engr# Edi'berto =ati!idad in $ani'a, %or the assu(ption o% the indebtedness o% $anue' ehis and the subse9uent re'ease o% the (ortgage on the property by the ban+# 0ayandayan and ?rceo did not sho- to the ban+ the ?gree(ent -ith $anue' ehis pro!iding %or the rea' consideration o% )1,433,333#33 %or the sa'e o% the property to the %or(er# /ubse9uent'y, the ban+ consented to the substitution o% p'ainti%%s as (ortgage debtors in p'ace o% $anue' ehis in a $e(orandu( o% ?gree(ent bet-een pri!ate respondents and the ban+ -ith restructured and 'ibera'ized ter(s %or the pay(ent o% the (ortgage debt# 4nstead o% the ban+ %orec'osing i((ediate'y %or non<pay(ent o% the de'in9uent account, petitioner ban+ agreed to recei!e on'y a partia' pay(ent o% )143,333#33 by insta''(ent on speci%ied dates# ?%ter pay(ent thereo%, the ban+ agreed to re'ease the (ortgage o% $anue' ehisB to gi!e its consent to the trans%er o% tit'e to the pri!ate respondentsB and to the pay(ent o% the ba'ance o% )133,333#33 under ne- ter(s -ith a ne- (ortgage to be e,ecuted by the pri!ate respondents o!er the sa(e 'and# ISSUE: Chether the $e(orandu( o% ?gree(ent is !oidab'e on the ground that its consent to enter said agree(ent -as !itiated by %raud because pri!ate respondents -ithhe'd %ro( petitioner ban+ the (ateria' in%or(ation#

ECISI!N: =o# Fraud (ust be the deter(ining cause o% the contract, or (ust ha!e caused the consent to be gi!en# 4t is be'ie!ed that the non< disc'osure to the ban+ o% the purchase price o% the sa'e o% the 'and bet-een pri!ate respondents and $anue' ehis cannot be the %raud conte(p'ated by ?rtic'e 1338 o% the "i!i' "ode# Fro( the so'e reason sub(itted by the petitioner ban+ that it -as +ept in the dar+ as to the %inancia' capacity o% pri!ate respondent, the court cou'd not see hothe o(ission or concea'(ent o% the rea' purchase price cou'd ha!e induced the ban+ into gi!ing its consent to the agree(entB or that the ban+ -ou'd not ha!e other-ise gi!en its consent had it +no-n o% the rea' purchase price#

CARA)E! V. S0S. INGC! April 4, 2011 G.R. No. 190823 (Object/ ubject !atter: "e#uisites: $%istin& '( Future )*in&s) FACTS: On >u'y 13, 1993, &o(ingo "arabeo (petitioner) entered into a contract deno(inated as +Kasunduan sa ,ili*an n& Kara-atan sa .u-a+ -ith /pouses =orberto and /usan &ingco (respondents) -hereby petitioner agreed to se'' his rights o!er a ;48 s9uare (eter parce' o% unregistered 'and to respondents %or )38,333# 0espondents tendered their initia' pay(ent o% )13,333 upon signing o% the contract, the re(aining ba'ance to be paid on /epte(ber 1993# 0espondents -ere 'ater to c'ai( that -hen they -ere about to hand in the ba'ance o% the purchase price, petitioner re9uested the( to +eep it %irst as he -as yet to sett'e an on<going "s9uabb'e" o!er the 'and# =e!erthe'ess, respondents ga!e petitioner s(a'' su(s o% (oney %ro( ti(e to ti(e -hich tota'ed )9,133, on petitionerFs re9uest according to the(B due to respondentsF inabi'ity to pay the a(ount o% the re(aining ba'ance in %u'', according to petitioner# y respondentsF c'ai(, despite the a''eged prob'e( o!er the 'and, they insisted on petitionerFs acceptance o% the re(aining ba'ance o% )18,933 but petitioner re(ained %ir( in his re%usa', pro%%ering as reason there%or that he -ou'd register the 'and %irst# /o(eti(e in 1994, respondents 'earned that the a''eged prob'e( o!er the 'and had been sett'ed and that petitioner had caused its registration in his na(e on &ece(ber 11, 1993 under 8rans%er "erti%icate o% 8it'e =o# 1;183;# 8hey thereupon o%%ered to pay the ba'ance but petitioner dec'ined, dra-ing the( to %i'e a co(p'aint be%ore the Katarun&an /ambaran&a0# =o sett'e(ent -as reached,

ho-e!er, hence, respondent %i'ed a co(p'aint %or speci%ic per%or(ance be%ore 08" o% a'anga, ataan# )etitioner countered in his ?ns-er to the "o(p'aint that the sa'e -as !oid %or 'ac+ o% ob7ect certain, the +asunduan not ha!ing speci%ied the (etes and bounds o% the 'and# 4n any e!ent, petitioner a''eged that i% the !a'idity o% the +asunduan is uphe'd, respondentsF %ai'ure to co(p'y -ith their reciproca' ob'igation to pay the ba'ance o% the purchase price -ou'd render the action pre(ature# For, contrary to respondentsF c'ai(, petitioner (aintained that they %ai'ed to pay the ba'ance o% )18,333 on /epte(ber 1993 to thus constrain hi( to accept insta''(ent pay(ents tota'ing )9,133# ?%ter the case -as sub(itted %or decision or on >anuary 31, 1331, petitioner passed a-ay# 8he records do not sho- that petitionerFs counse' in%or(ed ranch 1 o% the ataan 08", -here the co(p'aint -as 'odged, o% his death and that proper substitution -as e%%ected in accordance -ith /ection 1;, 0u'e 3, 0u'es o% "ourt# 8he tria' court ru'ed in %a!or o% respondents# 8he "? a%%ir(ed the tria' court# :ence, this petition# ISSUE: Chether the e'e(ent o% a contract, i#e#, an ob7ect certain is present in this case# ECISI!N: Ges# 8hat the 1asunduan did not speci%y the technica' boundaries o% the property did not render the sa'e a nu''ity# 8he re9uire(ent that a sa'e (ust ha!e %or its ob7ect a deter(inate thing is satis%ied as 'ong as, at the ti(e the contract is entered into, the ob7ect o% the sa'e is capab'e o% being (ade deter(inate -ithout the necessity o% a ne- or %urther agree(ent bet-een the parties# *nder the +asunduan, the %o''o-ing can be %oundA H=a a+o ay (ay isang partia' na 'upa na (atatagpuan sa )uro+ 111, 8ugatog, Orani ataan, na (ay su+at na 12 , 14 (etro +u-adrado, ang nasabing 'upa ay (ay sa+op na da'a-ang punong santo' at isang punong (angga, +ayaFt a+o ay na+ipag+asundo sa (ag<asa-ang =orby &ingco at /usan &ingco na ipagbi'i sa +ani'a ang +arapatan ng nasabing 'upa sa ha'agang )38,333#33#I

?s the abo!e9uoted portion o% the +asunduan sho-s, there is no doubt that the ob7ect o% the sa'e is deter(inate#

C1AVEZ V. 0EA No2#-$#r 11, 2003 G.R. No. 133250 (Object/ ubject !atter: "e#uisites) FACTS: 8he "ourt, in this case, is as+ed to 'egiti(ize a go!ern(ent contract that con!eyed to a pri!ate entity 152#84 hectares o% rec'ai(ed pub'ic 'ands a'ong 0o,as ou'e!ard in $etro $ani'a at the ne&otiated -rice of /23455 -er s#uare meter# :o-e!er, pub'ished reports p'ace the (ar+et price o% 'and near that area at that ti(e at a high o% )93,333 per s9uare (eter# 8he di%%erence in price is a staggering /265(27 billion, e9ui!a'ent to the budget o% the entire >udiciary %or se!enteen years and (ore than three ti(es the $arcos /-iss deposits that this "ourt %or%eited in %a!or o% the go!ern(ent# 8he /enate 'ue 0ibbon "o((ittee and the "o((ittee on ?ccountabi'ity o% )ub'ic O%%icers conducted e,tensi!e pub'ic hearings to deter(ine the actua' (ar+et !a'ue o% the pub'ic 'ands so'd to the pri!ate entity# ?ccording to said "o((itteeFs reportA H)E?, under the >.?, ob'igated itse'% to con!ey tit'e and possession o!er the )roperty, consisting o% appro,i(ate'y One $i''ion Fi!e :undred /e!enty Eight 8housand Four :undred Forty One (1,528,441) /9uare $eters %or a tota' consideration o% One i''ion Eight :undred =inety Four $i''ion One :undred 8-enty =ine 8housand 8-o :undred ()1,894,119,133#33) )esos, or a price o% One 8housand 8-o :undred ()1,133#33) )esos per s9uare (eter#I 8he pri!ate entity that purchased the rec'ai(ed 'ands %or )1#894 bi''ion e,press'y ad(itted be%ore the /enate "o((ittees that it spent )1#254 bi''ion in co((issions to pay !arious indi!idua's %or Hpro%essiona' e%%orts and ser!ices in success%u''y negotiating and securingI the contract# y any 'ega' or (ora' yardstic+, the )1#254 bi''ion in co((issions ob!ious'y constitutes bribe (oney# =onethe'ess, there are those -ho insist that the bi''ions in in!est(ents o% the pri!ate entity deser!e protection by this "ourt#

ISSUE: Chether rec'ai(ed 'and is a 'icit sub7ect o% a contract# ECISI!N: =o# 4n the instant case, the bu'+ o% the 'ands sub7ect o% the ?(ended >.? are sti'' submer&ed lands e!en to this !ery day, and there%ore ina'ienab'e and outside the co((erce o% (an# O% the 253 hectares sub7ect o% the ?(ended >.?, 591#15 hectares or 89: of t*e total area are still submer&ed3 -ermanentl0 under t*e waters of !anila ,a0# *nder the ?(ended >.?, the )E? con!eyed to ?(ari the sub(erged 'ands e!en be%ore their actua' rec'a(ation, a'though the docu(entation o% the deed o% trans%er and issuance o% the certi%icates o% tit'e -ou'd be (ade on'y a%ter actua' rec'a(ation# 8he ?(ended >.? states that the )E? H*ereb0 contributes to t*e ;oint Venture its ri&*ts and -ri'ile&es to per%or( 0a-'and0ec'a(ation and :orizonta' &e!e'op(ent as -e'' as own t*e "eclamation <rea#I 8he ?(ended >.? %urther states that Hthe sharing o% the >oint .enture )roceeds sha'' be based on the ratio o% thirty percent (336) %or )E? and se!enty percent (236) %or ?$?04#I 8he ?(ended >.? a'so pro!ides that the )E? Hhereby designates ?$?04 to per%or( )E?Fs rights and pri!i'eges to rec'ai(, o-n and de!e'op the 0ec'a(ation ?rea#I In s*ort3 under t*e <mended ;V< t*e /$< contributed its ri&*ts3 -ri'ile&es and owners*i- o'er t*e "eclamation <rea to t*e ;oint Venture w*ic* is 85: owned b0 <mari( !oreo'er3 t*e /$< dele&ated to <mari t*e ri&*t and -ri'ile&e to reclaim t*e submer&ed lands(