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Case Digest: Heirs of Cecilio Caludel, et. al vs Court of Appeals, G.R. No. 85240

Heirs of Cecilio Caludel, et. al vs Court of Appeals, GR No. 85240, July 12, 1991

Subject: Obligations and Contracts

FACTS

As early as December 28, 1922, Basilio also known as “Cecilio” Claudel, acquired from the Bureau of Lands some parcel of lands of the Muntinlupa Estate Subdivision, located in the población of Muntinlupa, Rizal, with an area of 10, 107 square meters; he secured TCT’s in 1923; he also declared the lot in his name.

He dutifully paid the real estate taxes thereon until his death in 1937. Thereafter, his widow “Basilia” and later, her son Jose, one of the herein petitioners, paid the taxes. Thirty-nine years after Cecilio’s death, two branches of Cecilio’s family consented the ownership over the land-on hand the children of Cecilio herein petitioners (hereinafter referred to as Heirs of Cecilio), and on the other, the brother and sister of Cecilio herein private respondent’s (hereinafter referred to as SIBLINGS OF CECILIO). In 1972, the HEIRS OF CECILIO partitioned this lot among themselves and obtained the corresponding Transfer Certificates of Title on their shares.

Four years later, on December 7, 1976, private respondents SIBLINGS OF CECILI), filed a “Complaint for Cancellation of Titles and Reconveyance with Damages,” alleging that 46 years earlier, or somewhat in 1930, their parents had purchased from the late Cecilio Claudel several portions of the subject lot. They admitted that the transaction was verbal. However, as proof of the sale, the SIBLINGS CECILIO presented a subdivision plan of the said land, dated March 25, 1930, indicating the portions allegedly sold to the SIBLINGS OF CECILIO.

ISSUE

Whether or not a contract of sale of land may be proven orally.  

RULING

Yes.

Under the law (Art. 1403, NCC), the following contracts are unenforceable, unless they are ratified: (2) Those that do not comply with the Statute of Frauds as set forth in this number. In the following cases, an agreement hereafter made shall be unenforceable by action unless the same, or some note or memorandum thereof, be in writing, and subscribed by the party charged, or by his agent; evidence, therefore, of the agreement cannot be received without the writing, or a secondary evidence of its contents: (e) An agreement for the leasing for a longer period than one year, or for the sale of real property or of an interest therein.

In this case, the Supreme Court reversed the decision of the Court of Appeals, and reinstated that of the trial court, which ruled for the dismissal of the suit for cancellation of titles and reconveyance. It held that a sale of land, once consummated, is valid regardless of the form it may have been entered. Nowhere does law and jurisprudence prescribe that the contract of sale be put in writing before such contract can validly cede or transmit rights over a certain real property between the parties themselves. But if a third party, as in this case, disputes the ownership of the property, the person against whom the claim is brought cannot present any proof of such sale and, hence, has no means to enforce the contract. Thus, the statute of frauds was precisely devised to protect the parties in a contract of sale of real property so that no such contract is enforceable unless certain requisites, for purpose of proof, are met. Therefore, except under the conditions provided by the Statute of Frauds, the existence of the contract of sale made by Cecilio with his siblings cannot be proved. The belated claim of the siblings who filed a complaint only in 1976 to enforce a right acquired allegedly as early as 1930, is difficult to comprehend. The Civil Code states: the following must be commenced within six years: (1) upon an oral contract. If the siblings had allegedly derived their rights of action from the oral purchase made by their parents in 1930, then the action filed in 1976 would have prescribed. More than six years had elapsed.

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