University of the Philippines College of Law

CPE, 1-D

Topic V. Formation of COS

Case No. GR No L-21323 / 29 Mar 1924
Case Name BARRETTO v MANILA
Ponente Ostrand, j.

 Manila Railroad Co. offered to purchase from Esteban Barretto a strong material house situated on the
latter’s land in Calle Dagupan for P3.7k
 Barretto agreed, and executed a Deed of Sale in favor of MRC. However, upon presentation of the deed
MRC suddenly refused to pay
 MRC sets up the special defense that the agreement referred to is not in writing and therefore not
enforceable under the Statute of Frauds
 It appears from the evidence that the general manager of MRC addressed a communication to the
company’s right-of-way agent Mr. Miller asking for information about two houses of strong material
situated on Calle Dagupan and inquiring if the purchase of the houses would be advantageous for the
company.
 Mr Miller endorsed the houses, so Barretto was informed that MRC was willing to buy his house. When
he proceeded to Miller’s office, he was told to leave the deed and come back in the afternoon to receive
the purchase price. However, when he returned, he was not paid. Miller returned the deed to him and
told him to keep it until arrangements for the payment could be made.
 Lower court ruled in favor of Barretto and ordered MRC to pay the amount

Issue Ratio
W/N Barretto has a cause of Although MRC has subjected Barreetto to much trouble and annoyance,
action Barretto still has NO cause of action because

1. It is clear there was no delivery of the deed with the intention to part
with the title until the purchase price was paid. There was also no
final acceptance of the deed, as it was returned to Barretto.
2. MRC posed the defense of Statute of Frauds, as the agreement is not
in writing
3. MRC made timely objections to the introduction of parol evidence to
prove the contract of sale

WHEREFORE, the judgment appealed from is reversed.