Delos Reyes Vs CA G.R.

129103

Facts

Daluyong Gabriel owned a 5,010sqm parcel of land situated in Tagum, Davao Del
Norte, because of Daluyong Gabriel together with his family was residing in
Mandaluyong, Metro Manila, his sister Maria Rita Gabriel de Rey acted as
administrator of the said land and took charge in collecting the rentals for those
portions which has been leased to tenants/lessees. One of the lessees Lydia Delos
Reyes leased a portion of 176sqm for a term of 1 year.

Sometime in 1985, Daluyong Gabriel sent his son Renato Gabriel to Tagum and take
over as administrator from his aunt. On September 26, 1985, Renato Gabriel as
lesser and Lydia Delos Reyes as lessee executed and replaced the term from 1 year
to 6 year. Receipt of payment in advance was acknowledged by Renato Gabriel.

Sometime in 1987, Lydia Delos Reyes verbally agreed to buy 250sqm including the
176sqm leased by her and thereafter an additional of 50sqm or a total of 300sqm of
Daluyong Gabriel’s property at 300pesos per sqm. Receipt of payment of the purchase
price made in several installments by Lydia Delos Reyes was acknowledged by Renato
Gabriel.

Upon learning that Spouses Delos Reyes were constructing a two-storey building,
Daluyong Gabriel through his lawyer sent a letter to the Delos Reyes couple
demanding that they cease and desist from continuing their construction and vacate
the premises.

Spouses Delos Reyes through counsel sent their reply that they entered into the
lease agreement and subsequent sale of the land with Maria Rita G. Rey and Renato
Gabriel respectively which Daluyong Gabriel made his son as the new administrator
authorized to enter into such agreement.

On December 14, 1989, Daluyong Gabriel filed an action against spouses Delos Reyes
for the recovery of the subject land at the RTC of Tagum. Spouses Delos Reyes filed
before the same court a complaint for specific performance against Daluyong and his
children. The Civil Case was heard jointly and the trial court rendered a
consolidated decision ordering Daluyong and his clidren to execute a deed of
conveyance.

On Appeal by the Gabriel’s, CA reversed and set aside the decision of RTC and
rendered a new one “Ordering spouses Delos Reyes to immediately vacate the subject
land.”

Issue

1. Whether or not the sale made by Renato Gabriel of the land registered to his
deceased father during the lifetime of the latter, to the spouses Delos Reyes is
null and void.

2. Whether or the sale made by Renato Gabriel of the land registered to his
deceased father during the lifetime of the latter, in favor of the spouses Delos
Reyes, by operation of law automatically vest title on the latter under the
principle of estoppel as provided in Article 1433 and 1434 of the Civil Code.

Held

1. SC agrees with CA that Renato Gabriel was in no capacity to give consent on the
sale of the subject land. According to Article 1874 of the Civil Code, when the
sale of a piece of land or any interest therein, is through an agent, the authority
of the latter shall be in writing, otherwise the sale shall be null and void. The
verbal agreement made by Renato Gabriel and Lydia Delos Reyes lacks one of the
essential requisites for its validity; Renato Gabriel does not have authority to
enter into contract of sale of the subject land.

2. Article1433 and 1434 of the Civil Code is not applicable, Renato Gabriel never
acquired ownership of the subject land. Before Daluyong Gabriel died, he donated
the entire lot to his daughter Maria Rita Bartolome. If there was no donation made
by Daluyong Gabriel, Renato Gabriel will become the owner and acquired title by way
of hereditary succession.