RELLOSA VS.

GAW CHEE HUN

FACTS

: On 1944, Dionisio Rellosa, a Filipino, sold to Gaw Chee Hun, aChinese, a parcel of land with a house
erected on it, located in Manila.Both parties entered into a lease contract, whereby Rellosa, thevendor,
occupied the land under the condition that Gaw Chee obtainthe approval of the sale by the Japanese
Administration. Gaw Chee didnot obtain such approval. Rellosa now seeks to annul the sale
and thelease. Gaw Chee, meanwhile, contends that such sale was absoluteand conditional, the same not
being contrary to law, morals and publicorder. He further states that Rellosa is estopped from asserting
hisownership over the land, after having leased the same from Gaw Chee,and thus, recognizing Gaw
Chee’s title over the property.

ISSUES

: WON Rellosa can have the sale declared null and void andrecover the property considering the
effect of the law governingrescission of contracts.

HELD

: The sale in question is null and void, but plaintiff is barred fromtaking the present action under the
principle of pari delicto.

RATIO

: A party to an illegal contract cannot come into court to havehis illegal objects carried out. This is
the doctrine of In Pari Delicto.Rellosa’s sale of the land to Gaw Chee, an alien is against theConstitution
and is thus illegal. The Commonwealth Act provided thatsuch sale is not only unlawful but also null and
void ab initio, that suchwill effect the annulling and cancelling of the title originally issued, andreverting
the property and its improvements to the State