GR L 45121; (May, 1939) (Digest)
G.R. No. L-45121; May 31, 1939
In the matter of the guardianship of the incompetent Eulalio Lopez. DEMETRIO GAMBOA, guardian-appellee, vs. SERAFIN GAMBOA, oppositor-appellant.
FACTS
The guardianship estate of the incompetent Eulalio Lopez owned a hacienda. The court-authorized guardian, Demetrio Gamboa, obtained a loan from his brother, Serafin Gamboa, secured by a second mortgage on the hacienda, which the court approved. Subsequently, the guardian leased the same hacienda to Serafin for six years. The lease contract was executed but was not submitted to the court for approval prior to its execution. The prior lessee and other parties later offered to lease the property under allegedly better terms. The guardian, recommending another offer, submitted all proposals to the court. The court then issued orders awarding the lease to another party, declaring the lease to Serafin invalid for lack of court approval, and ordering Serafin to vacate the property.
ISSUE
Whether the contract of lease executed by the guardian in favor of Serafin Gamboa is valid and binding without prior judicial approval.
RULING
No. The lease contract is invalid. The court’s prior authorization to the guardian was to lease the property to the person offering the “best conditions,” and it expressly required that the deed of lease be submitted to the court “for proper action.” This made judicial approval an indispensable requirement for the validity of the lease. The guardian’s act of executing the lease without first securing court approval exceeded his authority. The court, having control over the guardianship proceedings, properly declared the lease void in the same proceedings without the need for a separate action.
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