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Case Digest: Cruz, et.al. vs CA, G.R. No. 126713

Adoracion E. Cruz, et.al. vs Court of Appeals and Spouses Eliseo and Virginia Mololos, GR No. 126713, July 27, 1998

Subject: Obligations and Contracts

Facts

Upon the death of Delfin, surviving spouse and children executed a notarized Deed of Partial Partition by virtue of which each one of them was given a share of several parcels of registered lands all situated in Taytay, Rizal. Despite the execution of this Deed of Partial Partition and the eventual disposal or sale of their respective shares, the contracting parties covenanted and agreed among themselves and by these presents do hereby bind themselves to one another that they shall share alike and received equal shares from the proceeds of the sale of any lot or lots allotted to and adjudicated in their individual names by virtue of this deed of partial partition. Accordingly, the sheriff executed a Certificate of Sale over –all the rights, claims, interests, titles, shares, and participations of defendant spouses Nerissa Tamayo and Nelson Tamayo.

Nerissa Cruz Tamayo failed to exercise her right of redemption within the statutory period and so the final deed of sale was executed by the sheriff conveying the lands in question to spouses Eliseo and Virginia Malolos.  The Malolos couple asked Nerissa Cruz Tamayo to give them the owner’s duplicate copy of the seven (7) titles of the lands in question but she refused.  The couple moved the court to compel her to surrender said titles to the Register of Deeds of Rizal for cancellation. But Nerissa was adamant.  She did not comply with the Order of the court and so the Malolos couple asked the court to declare said titles as null and void. At this point, Adoracion Cruz, Thelma Cruz, Gerry Cruz and Arnel Cruz entered the picture by filing a lower court motion for leave to intervene and oppose [the] Maloloses’ motion.  The Cruzes alleged that they were co-owners of Nerissa Cruz Tamayo over the lands in question. Said court issued an Order modifying the Order by directing the surrender of the owner’s duplicate copies of the titles of the lands in question to the Register of Deeds not for cancellation but for the annotation of the rights, interest acquired by the Maloloses over said lands.

Issue

Whether or not the DPP was cancelled or novated by the MOA

Ruling

No novation or cancellation.

Under the law (Art 1305, NCC), a contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

In this case, petitioners insist that the MOA categorically and unmistakably named and covenanted them as co-owners of the parcels in issue and novated their earlier agreement, the Deed of Partial Partition. Petitioners also claim that the MOA clearly manifested their intention to create a co-ownership. The Court disagrees. The foregoing provision in the MOA does not novate, much less cancel, the earlier DPP. The MOA falls short of producing a novation, because it does not express a clear intent to dissolve the old obligation as a consideration for the emergence of the new one. Verily, the MOA cannot be construed as a repudiation of the earlier DPP. Both documents can exist together and must be so interpreted as to give life to both.

Indeed, the legal effects of a contract are determined by extracting the intention of the parties from the language they used and from their contemporaneous and subsequent acts. This principle gains more force when third parties are concerned. To require such persons to go beyond what is clearly written in the document is unfair and unjust. They cannot possibly delve into the contracting parties' minds and suspect that something is amiss, when the language of the instrument appears clear and unequivocal.

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