LAW ON SALES | CORONEL VS. COURT OF APPEALS, 263 SCRA 15, OCTOBER 07, 1996

CORONEL VS. COURT OF APPEALS, 

263 SCRA 15, OCTOBER 07, 1996


TOPIC/DOCTRINE

In interpreting Art. 1544 of the Civil Code, the governing principle is primus tempore, potior jure (first in time, stronger in right)—knowledge gained by the first buyer of the second sale cannot defeat the first buyer’s rights, except where the second buyer registers in good faith the second sale ahead of the first.


FACTS

On January 15, 1985, plaintiff-appellee Concepcion D. Alcaraz, paid the down payment of Fifty Thousand (P50,000.00) Pesos to consummate the sale of a parcel of land originally owned by Coronel under house and lot, covered by TCT No. 119627. On February 6, 1985, the property originally registered in the name of the Coronel’s father was transferred in their names under TCT No. 327043.

On February 18, 1985, the Coronels sold the property to intervenor-appellant Catalina B. Mabanag for One Million Five Hundred Eighty Thousand (P1,580,000.00) Pesos after the latter has paid Three Hundred Thousand (P300,000.00) Pesos. For this reason, Coronels canceled and rescinded the contract with Ramona by depositing the down payment paid by Concepcion in the bank in trust for Ramona Patricia Alcaraz. On April 2, 1985, Catalina caused the annotation of a notice of adverse claim covering the same property with the Registry of Deeds under TCT No. 351582.

The lower courts rule in-favor of the adverse claim of plaintiff-appellee Concepcion hence this appeal.

 

ISSUE

Who has better rights over the property?

 

RULING

Plaintiff-appellee Concepcion has better rights.

The court held that in Article 1544 on double sale, title or ownership to pass to the first buyer, the exceptions being: (a) when the second buyer, in good faith, registers the sale ahead of the first buyer, and (b) should there be no inscription by either of the two buyers, when the second buyer, in good faith, acquires possession of the property ahead of the first buyer. Unless, the second buyer satisfies these requirements, title or ownership will not transfer to him to the prejudice of the first buyer. In interpreting Art. 1544 of the Civil Code, the governing principle is primus tempore, potior jure (first in time, stronger in right)—knowledge gained by the first buyer of the second sale cannot defeat the first buyer’s rights, except where the second buyer registers in good faith the second sale ahead of the first.—Even assuming that there was double sale in this case, petitioner.

Here, the court held that as clearly borne out by the evidence, petitioner Mabanag could not have in good faith, registered the sale entered into on February 18, 1985 because as early as February 22, 1985, a notice of lis pendens had been annotated on the transfer certificate of title in the names of petitioners, whereas petitioner Mabanag registered the said sale sometime in April, 1985. At the time of registration, therefore, petitioner Mabanag knew that the same property had already been previously sold to private respondents, or, at least, she was charged with knowledge that a previous buyer is claiming title to the same property. Petitioner Mabanag cannot close her eyes to the defect in petitioners’ title to the property at the time of the registration of the property. https://www.instagram.com/lawyalstudent/

Popular posts from this blog

CRIMINAL LAW II CASE DIGEST/ BACLAYON V. MUTIA, 129 SCRA 148

BACLAYON V. MUTIA, 129 SCRA 148 TOPIC/DOCTRINE Conditions should be interpreted with flexibility in their application and each case should be judged on its own merits—on the basis of the problems, needs and capacity of the probationer. The very liberality of the probation should not be made a tool by trial courts to stipulate instead unrealistic terms. FACTS Petitioner, Florentina L. Baclayon was convicted of the crime of Serious Oral Defamation for having quarreled with and uttered insulting and defamatory words against Remedios Estillore, principal of the Plaridel Central School. The CA/IAC affirmed her conviction and increased the penalty imposed by respondent judge and sentenced her to 1 year 8 months 21 days of arresto mayor in its maximum period to 2 years and 4 months of prision correccional in its minimum period. The sentence was promulgated on September 9, 1981, and on the same date Baclayon applied for probation with respondent judge who referred the application t...
MUST READ

CONSTITUTIONAL LAW I CASE DIGEST | THE DIOCESE OF BACOLOD V. COMELEC G.R. No. 205728, January 21, 2015

THE DIOCESE OF BACOLOD V. COMELEC G.R. No. 205728, January 21, 2015 TOPIC/DOCTRINE Free speech and other intellectual freedoms as "highly ranked in our scheme of constitutional values." These rights enjoy precedence and primacy. FACTS On February 21, 2013, petitioners posted two (2) tarpaulins were posted within a private compound housing the San Sebastian Cathedral of Bacolod (on the front walls of the cathedral within public view ). Each tarpaulin was approximately six feet (6') by ten feet (10') in size. The first tarpaulin contains the message "IBASURA RH Law" referring to the Reproductive Health Law of 2012 or Republic Act No. 10354.  The second tarpaulin contains the heading "Conscience Vote" and lists candidates as either "(Anti-RH) Team Buhay" with a check mark, or "(Pro-RH) Team Patay" with an "X" mark .  Those who voted for the passing of the RH law were classified by petitioners as comprising "Team Pata...
MUST READ

CREDIT TRANSACTIONS CASE DIGEST/ BPI FAMILY BANK VS. FRANCO/ G. R. NO. 123498/ 23 NOVEMBER 2007

CREDIT TRANSACTIONS CASE DIGEST BPI FAMILY BANK VS. FRANCO, G. R. NO. 123498, 23 NOVEMBER 2007   TOPIC/DOCTRINE The quality of being fungible depends upon the possibility of the property, because of its nature or the will of the parties, being substituted by others of the same kind, not having a distinct individuality. FACTS Franco opened three accounts, namely, a current,4 savings,5 and time deposit,6 with BPI-FB. The current and savings accounts were respectively funded with an initial deposit of P500,000.00 each, while the time deposit account had P1,000,000.00 with a maturity date of August 31, 1990. The total amount of P2,000,000.00 used to open these accounts is traceable to a check issued by Te-vesteco allegedly in consideration of Franco’s introduction of Eladio Teves, who was looking for a conduit bank to facilitate Tevesteco’s business transactions, to Jaime Sebastian, who was then BPI-FB SFDM’s Branch Manager. In turn, the funding for the P2,000,000.00 che...
MUST READ

REMEDIAL LAW | Riviera Golf Club v. CCA G.R. No. 173783, June 17 2015

Image
Riviera Golf Club v. CCA  G.R. No. 173783, June 17 2015 FACTS Riviera Golf Club entered into a Management Agreement with CCA Holdings to manage and operate the golf club. Riviera Golf defaulted on payments and terminated the agreement prematurely. CCA Holdings filed two separate lawsuits against Riviera Golf: Civil Case 01-611 for unpaid fees and reimbursement claims, Civil Case 03-399 for damages due to premature termination of the agreement. Riviera Golf argued that the second case was barred by res judicata and splitting a single cause of action. Whether the second complaint was barred by res judicata and splitting a single cause of action. RULING Yes. Res judicata requires the concurrence of the following requisites: (1) the former judgment must be final; (2) it must have been rendered by a court having jurisdiction of the subject matter and the parties; (3) it must be a judgment on the merits; and (4) there must be, between the first and second actions (a) identity of par...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ MINA VS. PASCUAL/ 25 PHIL. 540 (1923)

CREDIT TRANSACTION CASE DIGEST MINA VS. PASCUAL 25 PHIL. 540 (1923) TOPIC/DOCTRINE Commodatum is essentially gratuitous. ADDITIONAL NOTE A sale of land belonging to another, on which a building of the vendors is located, is null and void, for the vendor cannot sell or transfer property that does not belong to him. Mina vs. Pascual., as prescribed by article 361, the owner of the land on which a building has been erected by another in good faith has the option either to appropriate and pay for the building, under articles 453 and 454, or to oblige the builder to purchase the land. FACTS Andres Fontanilla, with the consent of his brother Francisco, erected a warehouse on a part of the lot belonging to Francisco, embracing 14 meters of its frontage by 11 meters of its depth. Francisco Fontanilla did not fix any definite period of the time during which Andres Fontanilla could have the use of the lot whereon the latter was to erect a stone warehouse of considerable value, and ...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ QUINTOS VS. BECK/ 69 PHIL. 108 (1939)

CREDIT TRANSACTION CASE DIGEST QUINTOS VS. BECK 69 PHIL. 108 (1939) TOPIC/DOCTRINE The contract entered into between the parties is one of commodatum, because under it the plaintiff gratuitously granted the use of the furniture to the defendant, reserving for herself the ownership thereof; by this contract the defendant bound himself to return the furniture to the plaintiff, upon the latter's demand. FACTS The plaintiff brought this action to compel the defendant to return to her certain furniture which she lent him for his use. Defendant is a tenant of defendant. Defendant wrote another letter to the plaintiff informing her that he could not give up the three gas heaters and the four electric lamps because he would use them until the 15th of the same month when the lease is due to expire. The plaintiff refused to get the furniture in view of the fact that the defendant had declined to make delivery of all of them. On November 15th, before vacating the house, the defend...
MUST READ

LAW ON PROPERTY | ACOSTA V. OCHOA, ET AL., G.R. NO. 211559; G.R. NO. 215634, OCTOBER 15, 2019

Image
ACOSTA V. OCHOA, ET AL., G.R. NO. 211559; G.R. NO. 215634, OCTOBER 15, 2019.   TOPIC/DOCTRINE Ownership and possession of firearms is not a property right, but a mere privilege. Should the State find that bearing arms would be contrary to its legitimate interests, it can revoke the license without violating the due process clause.    FACTS This is a consolidated petition assailing the constitutionality of certain provisions of Republic Act  No. 10591, or the Comprehensive Firearms and Ammunition Regulation Act, and their corresponding  provisions in the 2013 Implementing Rules and Regulations for allegedly violating petitioners right to  bear arms, right to property, and right to privacy.  Yes, Section 9 of Republic Act No. 10591 which mandates applicants for Types 3 to 5 licenses to  comply with "inspection... requirements." The law and the corresponding provision in the  Implementing Rules. Initially the law is silent and ha...
MUST READ

ALTERNATIVE DISPUTE RESOLUTION | HYGIENIC PACKAGING CORPORATION VS. NUTRI-ASIA, INC ., G.R. NO. 201302, JANUARY 23, 2019

Image
HYGIENIC PACKAGING CORPORATION VS. NUTRI-ASIA, INC ., G.R. NO. 201302, JANUARY 23, 2019   FACTS Hygienic Packaging Corporation (Hygienic) is a domestic corporation that manufactures and sells packaging materials such as plastic bottles. Nutri-Asia, also a domestic corporation, manufactures, and distributes food products such as banana-based and tomato-based condiments, vinegar, soy sauce, and other sauces.  From 1998 to 2009, Hygienic supplied Nutri-Asia with plastic bottles for its banana catsup products. Every transaction was covered by a Purchase Order issued by Nutri-Asia. The Purchase Order contains terms and conditions, among which is an Arbitration clause which provides: “ 13. Arbitration of all disputes arising in connection with this Contract shall be referred to an Arbitration Committee, in accordance with the Philippine Arbitration Law, composed of three members: xxx  For every purchase of plastic containers by Nutri-Asia, Hygienic issues Sales Invoices t...
MUST READ

LEGAL ETHICS | MAURICIO C. ULEP VS. THE LEGAL CLINIC, INC Bar Matter No. 553. June 17, 1993

Image
MAURICIO C. ULEP VS. THE LEGAL CLINIC, INC Bar Matter No. 553. June 17, 1993   TOPIC/DOCTRINES/WORDS AND PHRASES 1.     Words and Phrases; Meaning of “Practice of Law”— Practice of law, as defined by the Supreme Court, means any activity, in or out of court, which requires the application of law, legal procedures, knowledge, training and experience. To engage in the practice of law is to perform those acts which are characteristic of the profession. Generally, to practice law is to give advice or render any kind of service that involves legal knowledge or skill. The practice of law is not limited to the conduct of cases in court. It includes legal advice and counsel, and the preparation of legal instruments and contracts by which legal rights are secured, although such matter may or may not be pending in a court.   2.     Same; Instances when a person considered in a Practice of Law — When a person participates in a trial and advertise...
MUST READ

CREDIT TRANSACTION CASE DIGEST/ DELOS SANTOS VS. JARRA/ G. R. NO. L-4150/ 10 FEBRUARY 1910/ 15 PHIL. 147

CREDIT TRANSACTION CASE DIGEST DELOS SANTOS VS. JARRA, G. R. NO. L-4150, 10 FEBRUARY 1910, 15 PHIL. 147 TOPIC/DOCTRINE In a contract of commodatum whereby one of the parties thereto delivers to the other a thing that is not perishable, to be used for a certain time and afterwards returned, it is the imperative duty of the bailee, if he should be unable to return the thing itself to the owner, to pay damages to the latter if, through the fault of the bailee, the thing loaned was lost or destroyed, inasmuch as the bailor retains the ownership thereof. FACTS On the 1st of September, 1906, Felix de los Santos brought suit against Agustina Jarra, the administratrix of the estate of Magdaleno Jimenea, alleging that in the latter part of 1901 Jimenea borrowed and obtained from the plaintiff ten first-class carabaos, to be used at the animal-power mill of his hacienda during the season of 1901-2, without recompense or remuneration whatever for the use thereof, under the sole conditi...
MUST READ