3.

UNENFORCEABLE CONTRACTS (ART 1403-1408)

a. Characteristics
b. Kinds

5.
G.R. No. L-41132

VICTORINO HERNANDEZ., petitioner,

Versus
HONORABLE COURT OF APPEALS and SUBSTITUTED HEIRS OF REV. FR. LUCIO
V. GARCIA, respondents.
APRIL 27, 1988

Facts:
In the year 1959, Fr. Garcia applied for the registration in his name of
Lots 1-A. 1-B. and 2 of Plan Psu-174210 in San Dionisio, Paranaque. The
property adjoined that of Hernandez, and both properties were once owned by
San Buenaventura. A boundary dividing the properties was set by cadastral
surveyors from the Bureau of Lands through laying down official monuments.
The monuments were set along a line which the landowners previously agreed
upon as the correct boundary between the properties. Hernandez did not
oppose the application leaving the heirs of Andres Buenaventura as the only
opposing party.
Hernandez learned of an anomaly of the application when the court
ordered the registration of the lots in Fr. Garcia's name. Hernandez filed a
petition for review of the decree but the petition was dismissed on the grounds
of prematurity since a new trial was ordered upon motion of the heirs in
opposition. The Court of First Instance ruled that Garcia is the owner of Lots 1-
A and 2 while the heirs in opposition as owners of Lot 1-B.
The Court of Appeals ruled that Fr. Garcia is the absolute owner by
acquisitive prescription. Hernandez re-filed his petition for the opening of the
decree. The application was irregular because it disregarded the existing
Bureau of Lands monuments designating boundaries which was previously
agreed upon. He was misled to believe that no violation was made by Fr.
Garcia. Trial Court and Court of Appeals dismissed the petition. Under the
Statute of Frauds, the agreement regarding the boundaries is unenforceable
because it was not reduced to writing.
Issue:
Whether or not Hernandez is entitled to re-open the decree and have the
disputed area registered in his name.

Ruling:
Yes. The Statute of Frauds finds no application to this case. Not every
agreement affecting land in subject must be put in writing to attain
enforceability. Under the Statute of Frauds, Article 1403 of the Civil Code, such
formality is only required of contracts involving leases for longer than one year,
or for the sale of real property or of any interest therein.
Hernandez's testimony is thus admissible to establish his agreement
with Fr. Garcia as to the boundary of their estates. It is also to be noted that
the presence of Hernandez's tenants on the land within his side of the border,
were this to be estimated from the "mohon," further defenses to his claim., The
foregoing considerations demonstrate more than adequately that the inclusion
of the 220-square-meter area in the Original Certificate of Title No. 8664 of the
Register of Deeds of Rizal is null and void