GR 168220; (August, 2005) (Digest)
G.R. No. 168220. August 31, 2005
SPS. RUDY PARAGAS and CORAZON B. PARAGAS, Petitioners, vs. HEIRS OF DOMINADOR BALACANO, namely: DOMINIC, RODOLFO, NANETTE and CYRIC, all surnamed BALACANO, represented by NANETTE BALACANO and ALFREDO BALACANO, Respondents.
FACTS
Gregorio Balacano was the registered owner of two lots. A week before his death on July 28, 1996, a Deed of Absolute Sale dated July 22, 1996, was executed purporting that Gregorio sold substantial portions of these lots to petitioners Spouses Paragas for PHP 500,000. The deed was notarized in Santiago City. Gregorio’s grandchildren (respondents) filed a complaint for annulment, alleging Gregorio could not have appeared before the notary in Santiago City on July 22 as he was then confined at a hospital in Quezon City. They contended he was seriously ill, which vitiated his consent, and that their uncle Catalino manipulated the transaction.
Petitioners, in their defense, claimed the deed was actually executed earlier, on July 18 or 19, at the hospital in Bayombong, Nueva Vizcaya, where Gregorio was initially confined. They asserted Gregorio was of sound mind and that the properties were his separate capital. They also sold a portion of one lot back to Catalino shortly after Gregorio’s death.
ISSUE
Whether the Deed of Absolute Sale is valid, considering the circumstances surrounding its execution, particularly the physical and mental state of the vendor, Gregorio Balacano.
RULING
The Supreme Court denied the petition and affirmed the Court of Appeals’ decision annulling the sale. The legal logic centers on the validity of consent under Article 1330 of the Civil Code, which states that consent may be vitiated by, among others, incapacity. The Court found grave doubt regarding Gregorio’s capacity to give intelligent consent at the time of the purported sale. He was 81 years old, suffering from liver cirrhosis, and in the hospital in a weakened state just days before his death. The timeline and location of the notarization were highly questionable, with strong evidence he was in a Quezon City hospital, not in Santiago City, on the deed’s date.
Furthermore, the subsequent sale of a portion to Catalino, Gregorio’s son, at a price disproportionately low compared to the original sale, indicated bad faith and a scheme to circumvent the laws on succession. This circumstance bolstered the finding of vitiated consent and fraudulent maneuver. The Court emphasized that contracts require a meeting of the minds, and the vendor’s serious illness at the time of execution, coupled with suspicious circumstances, invalidated the consent given. Thus, the Deed of Absolute Sale was declared void.