CASE DIGEST: MONTECILLO VS.

REYNES
FACTS:
Ignacia Reynes, owns a lot1 situated in Mabolo, Cebu City and a portion of it 2
was bought by the Abucay spouses, who built a residential house on the
aformentioned lot. However, the Petitioner alleges that the said land was already
bought by them showing a deed of sale that was signed by affixing Reynes thumbmark. In the said deed of sale shown by Montecillo, Reynes affirmed the said deed,
wherein they agreed on the price in the amount of 47,000.00. Accordingly the deed
contains That I, IGNACIA T. REYNES, x x x for and in consideration of FORTY SEVEN
THOUSAND (P47,000.00) PESOS, Philippine Currency, to me in hand paid by RIDO
MONTECILLO xxx, receipt of which is hereby acknowledged, have sold, transferred,
and conveyed, unto RIDO MONTECILLO, x x x a parcel of land x x x. Montecillo then
promised to pay the amount but according to Reynes, the former was never been
able to pay which lead the latter to demand for payment but was not complied with
by the former . Subsequently, Reynes signed another deed of sale in favor of
Spouses Abucay.

ISSUE:
Whether or not the deed of sale is void ab initio or only rescissible?

RULING:
YES, the deed of sale is void ab initio.
Although in the face of the instrument, it may appear that they have a
contract but in truth and in fact they have no contract per se between them for
there is lack of consideration and not merely a case of failure to pay the purchase
price as claimed by Montecillo. The contract lacks a cause one of those essential
requirements in a valid contract. Where the deed of sale states that the purchase
price has been paid but in fact has never been paid, the deed of sale is void ab initio
for lack of consideration, it produces no effect whatsoever where the same is
without cause or consideration in that the purchase price which appears thereon as
paid has in fact never been paid by the purchaser to the vendor. Such a sale is nonexistent or cannot be considered as consummated.

RTC;
CA:

Declared

the

Affirmed

SC: Affirmed CA's decision

1 44 square meters
2 185 aquare meters

Montecillo's
the

Deed

decision

of

sale
of

is
RTC

null

and
in

void
toto