Facts:
Africa Valdez de Reynoso, the administratrix of a parcel of land leased it to the Bonnevies for P4,000 per month with a stipulation that the Bonnevies will be given first priority to purchase the land should Reynoso decide to sell it. According to Reynoso, she notified the Bonnevies via registered mail on Nov 3, 1976 her intention to sell the property for P600K, giving them 30 days to exercise their right, which she failed to prove. The Bonnevies alleged that they didn’t receive any letter. Reynoso sold the land to Guzman, Bocaling and Co. for P400K. The Bonnevies filed an action for annulment of the sale, and that Reynoso be required to sell the property to them which CFI granted and CA affirmed.
Issue:
Whether or not the contract is voidable.
Held:
The CA correctly held that the Contract of Sale was not voidable but Rescissible. Under Art. 1380 to 1381 (3) of the Civil Code, a contract otherwise valid may nonetheless be subsequently rescinded by reason of injury to third persons like creditors. The status of creditors could be validly accorded the Bonnevies for they had substantial interests that were prejudiced by the sale of the subject property to the petitioner without recognizing their right of first priority under the Contract of Lease.
According to Tolentino, rescission is a remedy granted by law to the contracting parties and even to third persons, to secure reparation for damages caused to them by a contract, even if this should be valid, by means of the restoration of things to their condition at the moment prior to the celebration of said contract. It is a relief allowed for the protection of one of the contracting parties and even third persons from all injury and damage the contract may cause, or to protect some incompatible and preferent right created by the contract. Rescission implies a contract which, even if initially valid, produces a lesion or pecuniary damage to someone that justifies its invalidation for reasons of equity.
Please visit my ACCOUNTS:
No comments:
Post a Comment