Documente Academic
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Documente Cultură
Law114 A
BSLM IV
PELAYO VS PEREZ
G.R NO. 141323 JUNE 8 2005
FACTS:
David Pelayo sold two parcels of agricultural land located in Panabo to Melki Perez on January 1988 and
the sale is evidenced by a deed of Absolute Sale and Loreza Pelayo, wife of David and another one whose
signature is illegible witnessed the execution of the deed. Mrs. Pelayo signed only the third space in the
space provided for the witness, Perez asked Loreza to sign on the first and second pages but the latter
refused as a result, Mr Perez instituted an action for specific performance and Perez countered that the
lots were given to him by defendant Pelayo in consideration of his services as his attorney-in fact to
make the necessary representation and negotiation with the illegal occupants-defendants in the ejectment
case. Defendant Pelayo said that the deed was without the consent of Mrs. Perez and invoked Art 166 of
the Civil Code to support his argument.
ISSUE:
Did Mrs Pelayo expressed his consent in the deed of Sale executed by Mrs Pelayo?
HELD:
The consent need not be expressed. It can be implied. In the present case, although it appears on the face
of the deed of sale that Lorenza signed only as an instrumental witness, circumstances leading to the
execution of said document point to the fact that Lorenza was fully aware of the sale of their conjugal
property and consented to the sale. The petition of Mr. and Mrs. Pelayo was denied.
Subsequently, Arturo and Esther had a marital squabble brewing at that time and Macatangay, to protect
his interest, made an annotation in the title of the property. He then sent a letter informing them of his
readiness to pay the full amount of the purchase price. Esther, through her SPA, executed in favor of
Macatangay, a Contract to sell the property to the extent of her conjugal interest for the sum of P650,000
less the sum already received by her and Arturo. She agreed to surrender the property to Macatangay
within 20 days along with the deed of absolute sale upon full payment, while he promised to pay the
balance of the purchase price for P1, 290,000.00 after being placed in possession of the property.
Macatangay informed them that he was ready to pay the amount in full. The couple failed to deliver the
property so he sued the spouses.
RTC dismissed the complaint, because the SPA could not have authorized Arturo to sell the property to
Macatangay as it was falsified. CA reversed the decision, ruling the SPA in favor of Arturo, assuming it
was void, cannot affect the transaction between Esther and Macatangay. On the other hand, the CA
considered the RMOA executed by Arturo valid to effect the sale of his conjugal share in the property.
ISSUE:
Whether or not the sale of property is valid.
RULING:
No. Arturo and Esther appear to have been married before the effectivity of the Family Code. There
being no indication that they have adopted a different property regime, their property relations would
automatically be governed by the regime of conjugal partnership of gains. The subject land which had
been admittedly acquired during the marriage of the spouses forms part of their conjugal partnership.
Under the Civil Code, the husband is the administrator of the conjugal partnership. This right is clearly
granted to him by law. More, the husband is the sole administrator. The wife is not entitled as of right to
joint administration.
The husband, even if he is statutorily designated as administrator of the conjugal partnership, cannot
validly alienate or encumber any real property of the conjugal partnership without the wifes consent.
Similarly, the wife cannot dispose of any property belonging to the conjugal partnership without the
conformity of the husband. The law is explicit that the wife cannot bind the conjugal partnership without
the husbands consent, except in cases provided by law.
More significantly, it has been held that prior to the liquidation of the conjugal partnership, the interest of
each spouse in the conjugal assets is inchoate, a mere expectancy, which constitutes neither a legal nor an
equitable estate, and does not ripen into title until it appears that there are assets in the community as a
result of the liquidation and settlement. The interest of each spouse is limited to the net remainder or
remanente liquido (haber ganancial) resulting from the liquidation of the affairs of the partnership after
its dissolution. Thus, the right of the husband or wife to one-half of the conjugal assets does not vest until
the dissolution and liquidation of the conjugal partnership, or after dissolution of the marriage, when it is
finally determined that, after settlement of conjugal obligations, there are net assets left which can be
divided between the spouses or their respective heirs.
The Family Code has introduced some changes particularly on the aspect of the administration of the
conjugal partnership. The new law provides that the administration of the conjugal partnership is now a
joint undertaking of the husband and the wife. In the event that one spouse is incapacitated or otherwise
unable to participate in the administration of the conjugal partnership, the other spouse may assume sole
powers of administration. However, the power of administration does not include the power to dispose or
encumber property belonging to the conjugal partnership. In all instances, the present law specifically
requires the written consent of the other spouse, or authority of the court for the disposition or
encumbrance of conjugal partnership property without which, the disposition or encumbrance shall be
void.
Inescapably, herein Arturos action for specific performance must fail. Even on the supposition that the
parties only disposed of their respective shares in the property, the sale, assuming that it exists, is still
void for as previously stated, the right of the husband or the wife to one-half of the conjugal assets does
not vest until the liquidation of the conjugal partnership. Nemo dat qui non habet. No one can give what
he has not.
HELD:
No. Rescission creates the obligation to return the things which were the object of the contract, together
with their fruits, and the price with its interest. It is clear the Equatorial never took actual control and
possession of the property sold, in view of Mayfairs timely objection to the sale and continued actual
possession of the property. Furthermore, the fact that Mayfair paid rentals to Equatorial during the
litigation should not be interpreted to mean actual delivery and recognition of Equatorials title. They
were made merely to avoid imminent eviction and should not be construed as recognition of Equatorial as
new owner.
In the instant case, as we have already stated in our Decision sought to be reconsidered, the consideration
for the loan-mortgage includes the consideration for the right of first refusal. Again, contrary to
petitioners charge that this conclusion enjoys no basis, we have merely taken our cue from the Equatorial
case, aforequoted. The court also went on to rule in the Ayala case (supra), that since the stipulations in
the subject Deed of Restrictions are plain and unambiguous, which leave no room for interpretation, there
was no cause for applying the rule on stringent treatment towards contracts of adhesion. Indeed, while
ambiguities in a contract of adhesion are to be construed against the party that prepared the same, this rule
applies only if the stipulations in such contract are obscure or ambiguous. If the terms thereof are clear
and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations
control. In the latter case, there would be no need for construction. Coming now to the case at bar,
considering that the contract provision in question (paragraph 9) is likewise plain and unambiguous, we
also find no occasion to apply the aforesaid treatment called for by petitioners. Petitioners Motion for
Partial Reconsideration is hereby DENIED for lack of merit.
interest, the unpaid installments due within the total grace period earned by him which is hereby
fixed at the rate of one month grace period for every one year of installment payments made:
Provided, That this right shall be exercised by the buyer only once in every five years of the life
of the contract and its extensions, if any.(b) If the contract is cancelled, the seller shall refund to
the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of
the total payments made, and, after five years of installments, an additional five per cent every
year but not to exceed ninety per cent of the total payments made: Provided, That the actual
cancellation of the contract shall take place after thirty days from receipt by the buyer of the
notice of cancellation or the demand for rescission of the contract by a notarial act and upon full
payment of the cash surrender value to the buyer. Down payments, deposits or options on the
contract shall be included in the computation of the total number of installment payments
made. As respondent failed to pay at least two years of installments, he is not, under abovequoted Section 3 of RA No. 6552, entitled to a refund of the cash surrender value of his
payments. What applies to the case instead is Section 4 of the same law, viz:
SECTION 4. In case where less than two years of installments were paid, the seller shall give the
buyer a grace period of not less than sixty days from the date the instalment became due. If the
buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel
the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand
for rescission of the contract by a notarial act.