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Case Digest: Gallardo vs IAC, G.R. No. L-67742

Gallardo vs IAC, GR No. L-67742, October 29, 1987

Subject: Obligations and Contracts

FACTS

Meliton claims that on Aug. 10, 1937, Pedro sold to him (Meliton) in a private document, an unnotarized deed of sale, allegedly signed by Pedro, now deceased, the property in question. Based on the private document of sale, the Original Certificate of Title was cancelled and a New Certificate of Title issued in the name of Meliton. The office of the Register of Deeds where the records were kept were destroyed. So, by an affidavit of reconstitution, dated Dec. 2, 1958, and upon presentation of the Owner's Duplicate Certificate of Title, the title was administratively reconstituted and the Register of Deeds issued the corresponding transfer certificate of title in the name of Meliton. On Nov. 17, 1976, Marta, the daughter of Pedro, executed and filed an affidavit of adverse claim with the Office of the Register of Deeds. On December 9, 1976, a deed of conveyance and release of claim was prepared which provided that Marta is withdrawing the adverse claim. But Marta refused to sign the affidavit of quitclaim.

Meliton sued Marta by filing a complaint for quieting of title. Marta countered that the deed of sale be declared null and void ab initio. The trial court declared the deed of sale of August 10, 1937, as well as the reconstituted certificate of title of Meliton void ab initio. 'The Intermediate Appellate Court affirmed the trial court. The Supreme Court sustained both the trial and appellate court.

ISSUE

Whether or not the deed of sale is valid.

RULING

No.

Under the law (Art 1356, NCC), contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. However, when the law requires that a contract be in some form in order that it may be valid or enforceable, or that a contract be proved in a certain way, that requirement is absolute and indispensable.

The deed of sale is not registerable under the Land Registration Act. True, a private conveyance of registered property is valid between the parties. But the only right the buyer of registered property in a private document is to compel through court processes the seller to execute a deed of conveyance sufficient in law for registration purposes.

Meliton's reliance on Art. 1356 of the Civil Code is unfortunate. The general rule enunciated in Art. 1356 is that contracts are obligatory, in whatever form they may have been entered, provided all the essential requisites for their validity are present. The next sentence provides the exception, which requires a contract to be in some form when the law so requires for validity or enforceability. Said law in Sec. 127 of Act 496 requires that the conveyance be executed "before the judge of a court of record or clerk of a court of record or a notary public or a justice of the peace, who shall certify such acknowledgment substantially in form next hereinafter stated." Such law was involved here. The Register of Deed's act in allowing the registration of the private deed of sale was authorized and did not validate the defective private document of sale.

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