CASE TITLE:

G.R. No. 126881 October 3, 2000

HEIRS OF TAN ENG KEE, petitioners, vs.
COURT OF APPEALS and BENGUET LUMBER COMPANY, represented by its
President TAN ENG LAY, respondents.

Facts: This case arose from a dispute over a parcel of land in Benguet. The parcel of
land was originally owned by Tan Eng Kee, who died in 1944. After his death, his heirs,
herein petitioners, succeeded him as owners of the land. In 1948, Tan Eng Kee's son,
Tan Eng Lay, sold the parcel of land to the Benguet Lumber Company, herein
respondent. Tan Eng Lay, as president of the respondent company, was the signatory
of the deed of sale. The petitioners then filed a complaint with the Regional Trial Court
of Benguet for the annulment of the deed of sale on the grounds that Tan Eng Lay had
no authority to sell the land. The trial court ruled in favor of the petitioners and declared
the deed of sale null and void. The respondent company appealed to the Court of
Appeals, which reversed the decision of the trial court, ruling that Tan Eng Lay had the
authority to sell the land. The petitioners then filed a Motion for Reconsideration, which
was denied by the Court of Appeals. The petitioners then filed a Petition for Review on
Certiorari with the Supreme Court.

Issue: Whether or not Tan Eng Lay had the authority to sell the parcel of land.

Ruling: The Supreme Court denied the petition and affirmed the decision of the Court of
Appeals. The Court held that the deed of sale was valid and binding, since Tan Eng Lay
had the authority to sell the parcel of land as the surviving heir of Tan Eng Kee. The
Court noted that the petitioners failed to prove that Tan Eng Lay did not have the
authority to act as the representative of the estate of Tan Eng Kee. The Court also held
that the deed of sale was properly executed, and that the petitioners had failed to
present any evidence of fraud or deceit in the execution of the deed of sale.