Manila Metal Container Corporation vs Philippine National Bank [GR No. 166862, Decem er 2!, 2!!

6"

Calle#o, $r., %.&

'acts& Petitioner (as the o(ner o) 8,!1* s+,are meters o) parcel o) lan- locate- in Man-al,.on/ Cit., Metro Manila. 0o sec,re a P1!!,!!!.!! loan it ha- o taine- )rom respon-ent Philippine National Bank, petitioner e2ec,te- a real estate mort/a/e over the lot. Respon-ent PNB later /rante- petitioner a ne( cre-it accommo-ation. 3n 4,/,st *, 1182, respon-ent PNB )ile- a petition )or e2tra#,-icial )oreclos,re o) the real estate mort/a/e an- so,/ht to have the propert. sol- at p, lic a,ction. 4)ter -,e notice an- p, lication, the propert. (as sol- at p, lic action (here respon-ent PNB (as -eclare- the (innin/ i--er. Petitioner sent a letter to PNB, re+,estin/ it to e /rante- an e2tension o) time to re-eem5rep,rchase the propert.. $ome PNB personnel in)orme- that as a matter o) polic., the ank -oes not accept 6partial re-emption7. $ince petitioner )aile- to re-eem the propert., the Re/ister o) Dee-s cancelle- 0C0 No. 82!18 an- iss,e- a ne( title in )avor o) PNB. Mean(hile, the $pecial 4sset Mana/ement Department 9$4MD: ha- prepare- a statement o) acco,nt o) petitioner;s o li/ation. <t also recommen-e- the mana/ement o) PNB to allo( petitioner to rep,rchase the propert. )or P1,*=>,*6!.oo. PNB re#ecte- the o))er an- recommen-ation o) $4MD. <t instea- s,//este- to petitioner to p,rchase the propert. )or P2,66!,!!!.!!, in its minim,m market val,e. Petitioner -eclare- that it ha- alrea-. a/reeto $4MD;s o))er to p,rchase )or P1,*=>,*6!.>= an- -eposite- a P=2*,!!!.!!. <ss,e& ?hether or not petitioner an- respon-ent PNB ha- entere- into a per)ecte- contract )or petitioner to rep,rchase the propert. )or respon-ent.

R,lin/& 0he $C a))irme- the r,lin/ o) the appellate co,rt that there (as no per)ecte- contact o) sale parties. et(een the

4 contract is meetin/ o) min-s et(een t(o persons (here . one in-s himsel), (ith respect to the other, to /ive somethin/ or to ren-er some service. @n-er 1818 o) the Civil Co-e, there is no contract ,nless the )ollo(in/ re+,isites conc,r& 1. 2. 8. Consent o) the contractin/ partiesA 3 #ection certain (hich is the s, #ect matter o) the contractA Ca,se o) the o li/ation (hich is esta lishe-. Contract is per)ecte,pon the thin/ an- ca,ses parties an- the o li/ations /oo- )aith. 0he a sence o) . mere consent (hich is mani)este- . the meetin/ o) the o))er an- the acceptance (hich are to constit,te the contract. 3nce per)ecte-, the in- et(een other contractin/ arisin/ there)rom have the )orm o) la( et(een the parties an- sho,l- e complie- in an. essential element (ill ne/ate the e2istence o) a per)ecte- contract o) sale.

0he co,rt r,le- in Boston Bank o) the Philippines vs Manalo& 64 -e)inite a/reement as to the price is an essential element o) a in-in/ a/reement to sell personal or real propert. eca,se it serio,sl. a))ects the ri/hts an- o li/ations o) the parties. Price is an essential element in the )ormation o) a in-in/ an- en)orcea le contract o) sale. 0he )i2in/ o) the price can never e le)t to the -ecision o)

one o) the contractin/ parties. B,t a price )i2erise to a per)ecte- sale.7

. one o) the contractin/ parties, i) accepte-

. the other, /ives

<n the case at ar, the parties to the contract is et(een Manila Metal Container Corporation an- Philippine National Bank an- not to $pecial 4sset Mana/ement Department. $ince the price o))ere- . PNB (as not accepte-, there is no contract. Bence it cannot serve as a in-in/ #,ri-ical relation et(een the parties.

G.R. No. 1>2!18.

3cto er 1*, 2!!2"

B< 4N $0CCD C3RP3R40<3N, petitioner , vs. B3N. C3@R0 3' 4PPC4D$, MEDCNC C. G4RC<4 anMED4 C. G4RC<4, respon-ents .

[G.R. No. 1>8>8!.

3cto er 1*, 2!!2"

MEDCNC C. G4RC<4 an- MED4 C. G4RC<4, petitioners , vs. B3N. CNR<C3 4. D4NF4N4$, Presi-in/ %,-/e, R0C, Branch =, Manila an- R@'3 %. BCRN4RD3, $heri))G<nGChar/e, )or the C2G3))icio $heri)) o) Manila, respon-ents . D C C < $ < 3 N C3R3N4, %. & Be)ore ,s are t(o consoli-ate- petitions& 91: G.R. No. 1>2!18, a special civil action )or certiorari anman-am,s seekin/ to ann,l an- set asi-e the Resol,tions [1" o) the Co,rt o) 4ppeals -ate- 3cto er 21, 1111 an%an,ar. 81, 2!!!, -en.in/ petitioner Bian $teel Corporation;s motion )or intervention an- motion )or reconsi-eration, an- 92: G.R. No. 1>8>8!, seekin/ to set asi-e the -ecision [2" an- resol,tion o) the Co,rt o) 4ppeals -ate- 'e r,ar. 1!, 2!!! an- Ma. 81, 2!!1, respectivel., -ismissin/ the petition o) petitioners M.lene C. Garcia anM.la C. Garcia )or violatin/ the r,les on )or,mGshoppin/. $trippe- o) the nonGessentials, the )acts o) the case are as )ollo(s& 3n %,l. 22, 1118, Bian $teel Corporation 9B$C: )ile- (ith the Re/ional 0rial Co,rt o) Manila a complaint a/ainst %oenas Metal Corporation an- spo,ses N/ De. B,at an- Deticia D. N/ 9the spo,ses N/: )or collection o) a s,m o) mone. (ith -ama/es, -ockete- as Civil Case No. 18G81881. 3n %,l. 2>, 1118, the trial co,rt [8" iss,e- a ?rit o) Preliminar. 4ttachment a)ter B$C )ile- an attachment on-. P,rs,ant thereto, on %,l. 2=, 1118, the sheri)) o) Branch = o) the R0C o) Manila, Man,elito P. Hiloria, levie- on the propert. re/istere- in the names o) the spo,ses N/ an- covere- . 0C0 No. 1188= o) the Re/istr. o) Dee-s o) I,eJon Cit.. 0his propert. ,n-er preliminar. attachment (as in )act mort/a/e- to the 'ar Cast Bank an- 0r,st Compan. 9'CB0C:, no( Bank o) the Philippine <slan-s 9BP<:, an- consiste- o) a 268Gs+,areGmeter lot locate- at 1> 0,lip Roa-, Gar-enville 0o(n an- Co,ntr. Bomes, Con/ressional 4ven,e, Pro#ect 8, I,eJon Cit.. 3n 4,/,st *, 1118, a sheri));s ret,rn (as )ile- . Hiloria, statin/ that, as o) that -ate, s,mmons (as not serve- ,pon the -e)en-ant spo,ses N/ eca,se the. co,l- not e locate-. B$C ca,se- the )ilin/ o) a motion to serve the s,mmons . p, lication (hich (as /rante-. $,mmons . p, lication therea)ter ens,e-. <n the meantime, -e)en-antGspo,ses N/ sol- the propert. to petitioners 9in G.R. No. 1>8>8!: M.lene an- M.la Garcia . means o) a -ee- o) sale -ate- %,ne 21, 1118. $ai- transaction (as re/istere- onl. a o,t a monthGan-GaG hal) later, on 4,/,st 12, 1118, a)ter the mort/a/ee 'CB0C /ave its approval to the sale. 3n 4,/,st 11, 1118, 0C0 No. 1188= in the name o) the spo,ses N/ (as cancelle- an-, in lie, thereo), 0C0 No. 11>226 in the names

o) M.lene an- M.la Garcia (as iss,e-. 0he annotation o) the preliminar. attachment ma-e earlier on %,l. 2=, 1118 . sheri)) Hiloria on the ol- title, 0C0 No. 1188=, (as trans)erre- to 0C0 No. 11>226. 3n 4,/,st 28, 1118, the Garcias )ile- a complaintGinGintervention in Civil Case No. 18G81881 pen-in/ at Branch = o) the Manila R0C, alle/in/ that the. (ere the re/istere- o(ners o) the propert. covere- . 0C0 No. 11>226 (hich (as the s, #ect o) B$C;s (rit o) preliminar. attachment. $ai- complaintGinGintervention (as -enie. the trial co,rt )or lack o) merit. 3n 4pril 1>, 1111, the trial co,rt ren-ere- #,-/ment (hich (as& . -e)a,lt in )avor o) B$C, the -ispositive portion o)

?BCRC'3RC, -ecision is here . ren-ere- in )avor o) plainti)) Bian $teel Corporation, an- a/ainst -e)en-ants %oenas Metal Corporation, N/ De. B,at an- Deticia D. N/, or-erin/ the latter to #ointl. an- severall.& 1. pa. the plainti)) the amo,nt o) '<HC M<DD<3N C<GB0 B@NDRCD '<'0E $<K 0B3@$4ND PC$3$ 9P*,8*6,!!!.!!: as act,al -ama/esA 2. pa. the plainti)) the amo,nt o) 3NC M<DD<3N PC$3$ 9P1,!!!,!!!.!!: as an- )or conse+,ential -ama/esA 8. pa. the plainti)) the amo,nt e+,ivalent to 2*L o) the total amo,nt -,e the plainti)) )rom the -e)en-ant as an)or attorne.;s )eesA an>. to pa. the costs o) s,it. $3 3RDCRCD.[>" 3n %,ne 1>, 1111, a Notice o) $ale o) C2ec,tion on Real Propert. (as iss,eBernar-o. <t sche-,le- the p, lic a,ction o) the propert. on %,l. =, 1111. . respon-ent sheri)) R,)o %.

Mean(hile, on 'e r,ar. 18, 1111, in vie( o) the -ismissal o) their complaintGinGintervention, the Garcias )ilean action a/ainst B$C, sheri)) Man,elito P. Hiloria, the Re/ister o) Dee-s o) I,eJon Cit. an- 'CB0C 9no( BP<: )or cancellation o) the notice o) lev. annotate- on 0C0 No. 11>226 e)ore Branch 18 o) the Re/ional 0rial Co,rt o) I,eJon Cit.,[*" -ockete- as Civil Case No. 11G868!>. 0he Garcias claime- that the. (ere the re/istere- o(ners o) the propert. in -isp,te, havin/ ac+,ire- the same on %,ne 21, 1118 . means o) a -ee- o) sale (ith ass,mption o) mort/a/e )rom spo,ses N/ De. B,at an- Deticia D. N/. <n sai- case in the I,eJon Cit. R0C, the Garcias (ere a le to sec,re a temporar. restrainin/ or-er en#oinin/ sheri)) R,)o %. Bernar-o or an. person actin/ in his ehal) )rom contin,in/ (ith the p, lic a,ction sale o) the s, #ect propert. initiall. sche-,le- on %,l. =, 1111. 0his 0R3 (as -isre/ar-e- . the Manila R0C. 4ctin/ on the e2Gparte mani)estation (ith motion to procee- (ith the e2ec,tion sale )ile- . B$C, %,-/e Cnrico DanJanas o) Branch =, R0C, Manila a))irme-, on %,l. 8, 1111, his previo,s or-er an- -irecte- the p, lic a,ction o) the attache- propert., ,nless other(ise en#oine- . the Co,rt o) 4ppeals or this Co,rt. 0herea)ter, the p, lic a,ction (as resche-,le- )rom %,l. =, 1111 to 4,/,st 6, 1111. 3n 4,/,st >, 1111, the Garcias )ile- another case (ith the Co,rt o) 4ppeals )or the iss,ance o) a (rit o) preliminar. in#,nction (ith pra.er )or temporar. restrainin/ or-er (hich so,/ht to perpet,all. en#oin %,-/e DanJanas an- sheri)) Bernar-o )rom procee-in/ (ith the p, lic a,ction on 4,/,st 6, 1111. 0heir petition -i- not implea- B$C as private respon-ent. <n a resol,tion -ate- 4,/,st *, 1111, the 0hir- Division o) the Co,rt o) 4ppeals [6" temporaril. restraine- p, lic respon-ents %,-/e DanJanas an- Bernar-o )rom procee-in/ (ith the p, lic a,ction o) the s, #ect propert.. Bence, the sche-,le- p, lic sale on 4,/,st 6, 1111 -i- not transpire. 0his prompte- petitioner B$C to )ile a motion )or intervention on 4,/,st 16, 1111, pra.in/ that it e allo(e- to intervene an- e hear- in the case as private respon-ent, an- to comment an- oppose the petition )ile- . the Garcias. Dike(ise, sai- motion so,/ht to oppose the pra.er )or preliminar. in#,nction (ith ,r/ent re+,est )or the iss,ance o) the temporar. restrainin/ or-er.

3n 3cto er 21, 1111, the 'irst Division o) the Co,rt o) 4ppeals, in its resol,tion, [=" -enie- B$C;s motion )or intervention on the /ro,n- that its ri/hts co,l- e protecte- in a separate procee-in/, partic,larl. in the cancellation case )ile- . the Garcias. B$CMs motion )or reconsi-eration (as like(ise -enie- on %an,ar. 81, 2!!!. 0h,s, on March 18, 2!!!, B$C )ile- (ith this Co,rt a special civil action )or certiorari an- man-am,s, -ockete- as G.R. No. 1>2!18, seekin/ to ann,l an- set asi-e the Resol,tions o) the Co,rt o) 4ppeals -ate- 3cto er 21, 1111 an- %an,ar. 81, 2!!!. B$C is invokin/ the )ollo(in/ iss,es& < 0BC RC$P3NDCN0 B3N3R4BDC C3@R0 3' 4PPC4D$ C3MM<00CD GR4HC 4B@$C 3' D<$CRC0<3N 04N04M3@N0 03 D4CN 3R CKCC$$ 3' %@R<$D<C0<3N <N DCNE<NG PC0<0<3NCR;$ M30<3N '3R <N0CRHCN0<3N '3R BC<NG <MPR3PCR 4$ <N0CRHCN3R;$ R<GB0$ M4E BC PR30CC0CD <N 4 $CP4R40C PR3CCCD<NG <N C<H<D C4$C N3. 11G868!> 3' 0BC R0C, BR4NCB 18, I@CF3N C<0E, '3R C4NCCDD40<3N 3' 0BC N30<CC 3' DCHE 4NN3040CD 3N 0C0 N3. 11>226. << 0BC B3N3R4BDC C3@R0 3' 4PPC4D$ C3MM<00CD GR4HC 4B@$C 3' D<$CRC0<3N 04N04M3@N0 03 D4CN 3R CKCC$$ 3' %@R<$D<C0<3N <N B3DD<NG 0B40 03 CN0CR04<N PC0<0<3NCR;$ <N0CRHCN0<3N ?3@DD NCCC$$4RE 9$<C: PRCGCMP0 0BC 4D%@D<C40<3N 3' <$$@C$ <N C<H<D C4$C N3. 11G868!> BCC4@$C CH<DCNCC 4ND C3@N0CRGCH<DCNCC ?<DD BC PR3D@CCD BE 0BC P4R0<C$ <N 0BC <N%@NC0<3N $@<0, 4ND 0B<$ ?<DD @ND@DE DCD4E 3R PRC%@D<CC 0BC 4D%@D<C40<3N 3' 0BC R<GB0$ 3' 0BC PR<NC<P4D P4R0<C$. <<< 0BC B3N3R4BDC C3@R0 3' 4PPC4D$ C3MM<00CD GR4HC 4B@$C 3' D<$CRC0<3N 04N04M3@N0 03 D4CN 3R CKCC$$ 3' %@R<$D<C0<3N <N R@D<NG 0B40 0BC 4DD3?4NCC 3R D<$4DD3?4NCC 3' 4 M30<3N 03 <N0CRHCNC <$ 4DDRC$$CD 03 0BC $3@ND D<$CRC0<3N 3' 0BC C3@R0, 3HCRD33N<NG 0BC '4C0 0B40 <N 0BC <N$04N0 C4$C, 0BC 4PPCDD40C C3@R0 D<D N30 CKCRC<$C ?<$CDE <0$ $3@ND D<$CRC0<3N ?BCN <0 DCN<CD PC0<0<3NCR;$ M30<3N '3R <N0CRHCN0<3N. $imilarl., the 'i)teenth Division o) the Co,rt o) 4ppeals, in its -ecision [8" -ate- 'e r,ar. 1!, 2!!!, -ismissethe petition o) the Garcias )or violatin/ the r,les on )or,mGshoppin/. <t -enie- their motion )or reconsi-eration on Ma. 81, 2!!1. 0he Garcias th,s )ile- (ith this Co,rt a petition )or revie( on certiorari, -ockete- as G.R. No. 1>8>8!, seekin/ to set asi-e the 'e r,ar. 1!, 2!!! -ecision o) the Co,rt o) 4ppeals as (ell as its resol,tion -ate- Ma. 81, 2!!1 -en.in/ their motion )or reconsi-eration, raisin/ the )ollo(in/ errors& < ?BC0BCR 3R N30 PC0<0<3NCR$ ?CRC G@<D0E 3' H<3D40<NG 0BC R@DC$ 3N '3R@MG$B3PP<NG. << ?BC0BCR 3R N30 PC0<0<3NCR$ 4RC CN0<0DCD 03 0BC <$$@4NCC 3' 4 ?R<0 3' <N%@NC0<3N. $, se+,entl., G.R. No. 1>2!18 an- G.R. No. 1>8>8! (ere consoli-ate- p,rs,ant to this Co,rtMs Resol,tion -ate- 'e r,ar. 2=, 2!!2. <n the meantime, on 4,/,st >, 2!!1, the Garcias (ere a/ain serve- . the sheri)) o) the Manila R0C (ith a notice o) sale o) e2ec,tion o) the -isp,te- propert. sche-,le- )or 4,/,st =, 2!!1. Beca,se no 0R3 (as iss,e- . this Co,rt, the p, lic a,ction or-ere- . the Manila R0C (as hel- as sche-,le- an- the propert. (as a(ar-e- to B$C as the hi/hest i--er.

3n 4,/,st 1*, 2!!1, a little too late, this Co,rt[1" iss,e- the 0R3 so,/ht partiall. state- that&

. the Garcias in a resol,tion (hich

4ctin/ on the Petitioners; @r/ent Motion )or the <ss,ance o) a temporar. restrainin/ or-er an-5or (rit o) preliminar. in#,nction -ate- 4,/,st 6, 2!!1, pra.in/ that p, lic respon-ents e en#oine- )rom procee-in/ (ith the con-,ct o) the p, lic a,ction sale involvin/ Petitioners; propert., re/istere- ,n-er 0C0 No. 11>226 o) the Re/istr. o) Dee-s o) I,eJon Cit., the Co,rt Resolve- to <$$@C the 0CMP3R4RE RC$0R4<N<NG 3RDCR pra.e- )or, e))ective imme-iatel. ,ntil ),rther or-ers )rom this Co,rt.[1!" 4 .ear a)ter the p, lic a,ction, on 4,/,st 6, 2!!2, the Garcias, )ear),l o) the impen-in/ consoli-ation o) title in )avor o) B$C, )ile- e)ore this Co,rt an ,r/ent e2Gparte motion )or the iss,ance o) an or-er maintainin/ the stat,s +,o ante. 0he. (ante- to prevent the consoli-ation o) the title an- possession . B$C ,ntil s,ch time as the ri/hts an- interests o) oth sets o) petitioners in the t(o cases e)ore ,s shall have een -eterminean- )inall. resolve-. 4ctin/ on the sai- motion, on 4,/,st 1, 2!!2, the Co,rt[11" resolve- to /rant the motion an- -irecte- the parties to maintain the stat,s +,o as o) 4,/,st 6, 2!!2. Goin/ over the merits o) the petitions, the Co,rt -eems it essential to resolve t(o pivotal iss,es& 91: (ho, et(een B$C an- the Garcias, has a etter ri/ht to the -isp,te- propert., an- 92: (hether the Garcias violate- the r,le a/ainst )or,mG shoppin/. <t sho,l- e note- that, at the time o) the attachment o) the propert. on %,l. 2=, 1118, the spo,ses N/ (ere still the re/istere- o(ners o) sai- propert.. <t sho,l- also e o serve- that the preliminar. attachment in )avor o) petitioner B$C (as annotate- an- recor-e- in the Re/istr. o) Dee-s o) I,eJon Cit. on %,l. 2=, 1118 in accor-ance (ith the provisions o) the Propert. Re/istration Decree 9PD 1*21:. 0his annotation pro-,ce- all the e))ects (hich the la( /ives to its re/istration or inscription.[12" 0his Co,rt has al(a.s hel- that attachment is a procee-in/ in rem. <t is a/ainst the partic,lar propert., en)orcea le a/ainst the (hole (orl-. 0he attachin/ cre-itor ac+,ires a speci)ic lien on the attache- propert. (hich ripens into a #,-/ment a/ainst the res (hen the or-er o) sale is ma-e. $,ch a procee-in/ in e))ect means that the propert. attache- is an in-e te- thin/ an- a virt,al con-emnation o) it to pa. the o(ner;s -e t. [18" 0his -octrine (as vali-ate- . this Co,rt in the more recent case o) Rep, lic vs. $al,-ares[1>"& 222. 0he la( -oes not provi-e the len/th o) time an attachment lien shall contin,e a)ter the ren-ition o) the #,-/ment, an- it m,st there)ore necessaril. contin,e ,ntil the -e t is pai-, or sale is ha- ,n-er e2ec,tion iss,e- on the #,-/ment, or ,ntil the #,-/ment is satis)ie-, or the attachment -ischar/e- or vacate- in some manner provi-e- . la(. 0h,s, i) the propert. attache- is s, se+,entl. sol-, the p,rchaser o) the attache- propert. ac+,ires it s, #ect to an attachment le/all. an- vali-l. levie- thereon. 222. <n the instant case, the recor-s reveal that the lev. on attachment coverin/ the s, #ect propert. (as annotateon 0C0 No. 1188= on %,l. 2=, 1118. 0he -ee- o) sale e2ec,te- on %,ne 21, 1118 in )avor o) the Garcias (as approve- . 'CB0C onl. on 4,/,st 12, 1118 (hich (as also the -ate (hen the sale (as re/istere-. 'rom the )ore/oin/, it can e seen that, (hen the Garcias p,rchase- the propert. in +,estion, it (as alrea-. ,n-er a -,l. re/istere- preliminar. attachment. <n other (or-s, there (as alrea-. notice to sai- p,rchasers 9an- the (hole (orl-: o) the impen-in/ ac+,isition . B$C, as the #,-/ment cre-itor, o) a le/al lien on the title o) the N/ spo,ses as #,-/ment -e tors in case B$C (on its case in the Manila R0C. 0he Garcias claim the. ac+,ire- the s, #ect propert. . means o) a -ee- o) sale (ith ass,mption o) mort/a/e -ate- %,ne 21, 1118, meanin/, the. p,rchase- the propert. ahea- o) the inscription o) the lev. on attachment thereon on %,l. 2=, 1118. B,t, even i) consens,al, not all contracts o) sale ecame a,tomaticall. an- imme-iatel. e))ective.[1*" <n Ramos vs. Co,rt o) 4ppeals[16" (e hel-&

<n sales (ith ass,mption o) mort/a/e, the ass,mption o) mort/a/e is a con-ition prece-ent to the seller;s consent an- there)ore, (itho,t approval o) the mort/a/ee, the sale is not per)ecte- . 4part there)rom, not(ithstan-in/ the approval o) the sale . mort/a/ee 'CB0C 9BP<:, there (as .et another step the Garcias ha- to take an- it (as the re/istration o) the sale )rom the N/s to them. <nso)ar as thir- persons are concerne-, (hat vali-l. trans)ers or conve.s a personMs interest in real propert. is the re/istration o) the -ee-. [1=" 0h,s, (hen the Garcias o,/ht the propert. on %,ne 21, 1118, it (as, at that point, no more than a private transaction et(een them an- the N/s. <t nee-e- to e re/istere- e)ore it co,l- ecome in-in/ on all thirparties, incl,-in/ B$C. <t t,rne- o,t that the Garcias re/istere- it onl. on 4,/,st 12, 1118, a)ter 'CB0C 9no( BP<: approve- the sale. <t (as too late . then eca,se, on %,l. 2=, 1118, the lev. in )avor o) B$C, p,rs,ant to the preliminar. attachment or-ere- . the Manila R0C, ha- alrea-. een annotate- on the ori/inal title on )ile (ith the Re/istr. o) Dee-s. 0his re/istration o) lev. 9or notice, in la.man;s lan/,a/e: no( ecame in-in/ on the (hole (orl-, incl,-in/ the Garcias. 0he ri/hts (hich ha- alrea-. accr,e- in )avor o) B$C . virt,e o) the lev. on attachment over the propert. (ere never a-versel. a))ecte- . the ,nre/istere- trans)er )rom the spo,ses N/ to the Garcias. ?e s.mpathiJe (ith the Garcias ,t, ha- the. onl. othere- to check )irst (ith the Re/ister o) Dee-s o) I,eJon Cit. e)ore ,.in/ the propert. as a pr,-ent ,.er (o,l- have -one the. (o,l- have seen the (arnin/ a o,t B$C;s s,perior ri/hts over it. 0his alone sho,l- have een s,))icient reason )or them to ack o,t o) the -eal. <t is -octrinal that a lev. on attachment, -,l. re/istere-, has pre)erence over a prior ,nre/istere- sale an-, even i) the prior ,nre/istere- sale is s, se+,entl. re/istere- e)ore the sale on e2ec,tion ,t a)ter the lev. is ma-e, the vali-it. o) the e2ec,tion sale sho,l- e ,phel- eca,se it retroacts to the -ate o) lev.. 0he priorit. en#o.e- . the lev. on attachment e2ten-s, (ith ),ll )orce an- e))ect, to the ,.er at the a,ction sale con-,cte- . virt,e o) s,ch lev..[18" 0he sale et(een the spo,ses N/ an- the Garcias (as ,n-o, te-l. a vali- transaction et(een them. Bo(ever, in vie( o) the prior lev. on attachment on the same propert., the Garcias took the propert. s, #ect to the attachment. 0he Garcias, in ,.in/ re/istere- lan-, stoo- e2actl. in the shoes o) their ven-ors, the N/s, an- their title ipso )acto ecame s, #ect to the inci-ents or res,lts o) the pen-in/ liti/ation [11" et(een the N/s an- B$C. Cven the alle/e- lack o) act,al an- personal kno(le-/e o) the e2istence o) the lev. on attachment over the s, #ect propert. . the Garcias cannot e s,staine- . this Co,rt on the /ro,n- that one (ho -eals (ith re/isterelan- is char/e- (ith notice o) the ,r-ens on the propert. (hich are -,l. note- on the certi)icate o) title. 3n this speci)ic point, (e are concerne- not (ith act,al or personal kno(le-/e ,t constr,ctive notice thro,/h re/istration in the Re/istr. o) Dee-s. 3ther(ise state-, (hat (e sho,l- )ollo( is the annotation 9or lack thereo): on the ori/inal title on )ile (ith the Re/istr. o) Dee-s, not on the -,plicate title in the han-s o) the private parties. ?hen a conve.ance has een properl. recor-e-, s,ch recor- is constr,ctive notice o) its contents an- all interests, le/al an- e+,ita le, incl,-e- therein. @n-er the r,le on notice, it is pres,me- that the p,rchaser has e2amine- ever. instr,ment on recor- a))ectin/ the title. $,ch pres,mption is irre),ta le an- cannot e overcome . an. claim o) innocence or /oo- )aith. 0here)ore, s,ch pres,mption cannot e -e)eate- . proo) o) lack o) kno(le-/e o) (hat the p, lic recor- contains an. more than one ma. e permitte- to sho( that he (as i/norant o) the provisions o) the la(. 0he r,le that all persons m,st take notice o) the )acts (hich the p, lic recorcontains is a r,le o) la(. 0he r,le m,st e a sol,te. 4n. variation (o,l- lea- to en-less con),sion an- ,seless liti/ation.[2!" 3ther(ise, the ver. p,rpose an- o #ect o) the la( re+,irin/ p, lic re/istration (o,l- e )or na,/ht. Pertinent to the matter at han- is 4rticle 1*>> o) the Ne( Civil Co-e (hich provi-es& <) the same thin/ sho,l- have een sol- to -i))erent ven-ees, 2 2 2 sho,l- it e immova le propert., the o(nership shall elon/ to the person ac+,irin/ it (ho in /oo- )aith )irst recor-e- it in the Re/istr. o) Propert.. 2 2 2 Beca,se o) the principle o) constr,ctive notice to the (hole (orl-, one (ho -eals (ith re/istere- propert. (hich is the s, #ect o) an annotate- lev. on attachment cannot invoke the ri/hts o) a p,rchaser in /oo- )aith. 4s

et(een t(o p,rchasers, the one (ho re/isters the sale in his )avor has a pre)erre- ri/ht over the other (ho has not re/istere- his title even i) the latter is in act,al possession o) the immova le propert.. [21" 4n-, as et(een t(o p,rchasers (ho oth re/istere- the respective sales in their )avor, the one (ho re/istere- his sale ahea- o) the other (o,l- have etter ri/hts than the other (ho re/istere- later. 4ppl.in/ sai- provision o) the la( an- settle- #,rispr,-ence to the instant case, (hen the -isp,te- propert. (as conse+,entl. sol- on e2ec,tion to B$C, this a,ction sale retroacte- to the -ate o) inscription o) B$CMs notice o) attachment on %,l. 2=, 1118. 0he earlier re/istration th,s /ave B$C s,perior an- pre)erential ri/hts over the attache- propert. as a/ainst the Garcias [22"(ho re/istere- their p,rchase o) the propert. at a later -ate. Nota l., the Garcias (ere not p,rchasers )or val,e in vie( o) the )act that the. ac+,ire- the propert. in pa.ment o) the loan earlier o taine- )rom them . the $po,ses N/.[28" 4ll tol-, the p,rchaser o) a propert. s, #ect to an attachment le/all. an- vali-l. levie- thereon is merel. s, ro/ate- to the ri/hts o) the ven-or an- ac+,ires the propert. s, #ect to the ri/hts o) the attachment cre-itor. 4n attachin/ cre-itor (ho re/isters the or-er o) attachment an- the sale . p, lic a,ction o) the propert. to him as the hi/hest i--er ac+,ires a s,perior title to the propert. as a/ainst a ven-ee (ho previo,sl. o,/ht the same propert. )rom the re/istere- o(ner ,t (ho )aile- to re/ister his -ee- o) sale. [2>" Petitioners Garcias )aile- to sho( that B$C acte- in other(ise. a- )aith (hich (o,l- have impelle- this Co,rt to r,le

0he )ore/oin/ consi-erations sho( that the Garcias are not entitle- to the iss,ance o) a (rit o) preliminar. in#,nction )rom this Co,rt. 'or the iss,ance o) the (rit to e proper, it m,st e sho(n that the invasion o) the ri/ht so,/ht to e protecte- is material an- s, stantial, that the ri/ht o) the Garcias is clear an- ,nmistaka le anthat there is an ,r/ent an- paramo,nt necessit. )or the (rit to prevent serio,s -ama/e. [2*" $,ch re+,irements are all (antin/ in the case at ar. 0h,s, in vie( o) the clear an- ,nmistaka le a sence o) an. le/al asis )or the iss,ance thereo), the same m,st e -enie-. 3n the secon- +,estion (hether the Garcias violate- the r,le a/ainst )or,mGshoppin/ (e ans(er in the a))irmative. 0he Co,rt o) 4ppeals, in -ismissin/ the GarciasM petition on the /ro,n- o) )or,mGshoppin/, e2plaine-& 4 part. is /,ilt. o) )or,mGshoppin/ (here he repetitivel. availe- o) several #,-icial reme-ies in -i))erent co,rts, sim,ltaneo,sl. or s,ccessivel., all s, stantiall. )o,n-e- on the same transactions an- the same essential )acts ancirc,mstances, an- all raisin/ s, stantiall. the same iss,es either pen-in/ in, or alrea-. resolve- a-versel. . some other co,rt 9Gatma.tan vs. Co,rt o) 4ppeals, 26= $CR4 >8=:. 0he test to -etermine (hether a part. violate- the r,le a/ainst )or,mGshoppin/ is (here the elements o) litis pen-entia are present or (here a )inal #,-/ment in one case (ill amo,nt to res #,-icata in another 9$oli- Bomes, <nc. vs. Co,rt o) 4ppeals, 2=1 $CR4 1*=:. ?hat is tr,l. important to consi-er in -eterminin/ (hether )or,mGshoppin/ e2ists or not is the ve2ation ca,se- the co,rts an- partiesGliti/ants . a part. (ho asks -i))erent co,rts an-5or a-ministrative a/encies to r,le on the same or relate- ca,ses an-5or /rant the same or s, stantiall. the same relie)s, in the process creatin/ possi ilit. o) con)lictin/ -ecisions ein/ ren-ere- . the -i))erent )ora ,pon the same iss,es 9Golan/co vs. Co,rt o) 4ppeals, 288 $CR4 >18:. 0he a ove #,rispr,-ence instr,cts ,s the vario,s in-icia o) )or,mGshoppin/. 0he more important o) these are& (hen the )inal #,-/ment in one case (ill amo,nt to res #,-icata in another, or (here the cases )ile- are s, stantiall. )o,n-e- on the same transactions an- the same essential )acts an- circ,mstances, or raisin/ s, stantiall. the same iss,es, or more importantl., (here there e2ists the possi ilit. o) con)lictin/ -ecisions ein/ ren-ere- . -i))erent )ora ,pon the same iss,es. <) (e take a look closel. on the instant Petition )or <n#,nction, )or,mGshoppin/ is evi-ent. <n Civil Case No. 11G 868!> ra))le- to Branch 18 o) R0CG I,eJon Cit., petitioners therein pra.e- )or the cancellation o) the notice o)

lev. in their title. 0he. are claimin/ that the controverte- propert. is o(ne- . them s,ch that the respon-ent therein has no ri/ht to lev. on their propert., petitioners not ein/ the respon-ent;s -e tor. <n the present petition, petitioners seek that the sche-,le- a,ction sale o) the same propert. e perpet,all. en#oine-, claimin/ that the propert. is o(ne- . them an- that the same is erroneo,sl. ma-e to ans(er )or lia ilit. not o(in/ . them. @ltimatel., the t(o actions involve the same essential )acts an- circ,mstances, an- are raisin/ the same iss,es. 2 2 2 0he propriet. o) the iss,ance o) in#,nction (o,l- -epen- on the )in-in/ that the petitioners have a clear le/al ri/ht over the propert. G a ri/ht in esse or the e2istence o) a ri/ht to e protecte-. 0h,s, this co,rt m,st make a cate/orical )in-in/ o) )act. 0his ver. same iss,e o) )act (ho as et(een the t(o conten-in/ parties have a etter ri/ht to the propert. is the ver. iss,e presente- e)ore the R0C o) I,eJon Cit.. Clearl. there)ore, this Co,rt an- that o) R0C I,eJon Cit. are calle- ,pon to -eci-e on the same iss,es ase- on the same essential )acts an- circ,mstances. Bence, the possi ilit. o) these t(o co,rts ren-erin/ or comin/ ,p (ith -i))erent or con)lictin/ -ecisions is ver. m,ch real. Nee-less to sa., the -ecision in one case (o,l- constit,te res #,-icata in the other. 0he instant petition )or in#,nction o vio,sl. violates the r,le on )or,mGshoppin/. ?e a/ree (ith the Co,rt o) 4ppeals. 4s clearl. -emonstrate-, the (ill),l attempt . the Garcias to o tain a preliminar. in#,nction in another co,rt 9the Co,rt o) 4ppeals: a)ter the. )ile- a case seekin/ the same relie) )rom the ori/inal co,rt 9the I,eJon Cit. R0C: constit,tes /rave a ,se o) the #,-icial process. $,ch contempt,o,s act is penaliJe- . the s,mmar. -ismissal o) oth actions as man-ate- . para/raph 1= o) the <nterim R,les an- G,i-elines iss,e- . this Co,rt on %an,ar. 11, 1188 an- $,preme Co,rt Circ,lar No. 28G11, to (it& 2 2 2 $@B%CC0& 4DD<0<3N4D RCI@<$<0C$ '3R PC0<0<3N$ '<DCD ?<0B 0BC $@PRCMC C3@R0 4ND 0BC C3@R0 3' 4PPC4D$ 03 PRCHCN0 '3R@MG$B3PP<NG 3R M@D0<PDC '<D<NG 3' PC0<0<3N$ 4ND C3MPD4<N0$. 0he attention o) the Co,rt has een calle- to the )ilin/ o) m,ltiple petitions an- complaints involvin/ the same iss,es in the $,preme Co,rt, the Co,rt o) 4ppeals or -i))erent Divisions thereo), or an. other tri ,nal or a/enc., (ith the res,lt that sai- tri ,nals or a/enc. have to resolve the same iss,es. 2 2 2. 8. Penalties. 9a: 4n. violation o) this Circ,lar shall 2 2 2. <n B,/na. Constr,ction O Development Corporation vs. Daron,[26" (e -eclare-& 'or,mGshoppin/, an act o) malpractice, is proscri e- an- con-emne- as tri)lin/ (ith the co,rts an- a ,sin/ their processes. <t is improper con-,ct that -e/ra-es the a-ministration o) #,stice. 0he r,le has een )ormaliJe- in Para/raph 1= o) the <nterim R,les an- G,i-elines iss,e- . this Co,rt o) %an,ar. 11, 1188, in connection (ith the implementation o) the %,-iciar. Reor/aniJation 4ct 2 2 2. 0he R,le or-ains that 9a: violation o) the r,le shall constit,te a contempt o) co,rt an- shall e a ca,se )or the s,mmar. -ismissal o) oth petitions, (itho,t pre#,-ice to the takin/ o) appropriate action a/ainst the co,nsel or part. concerne-. 0he r,le a/ainst )or,mGshoppin/ has een ),rther stren/thene- . the iss,ance o) $,preme Co,rt 4-ministrative Circ,lar No. !>G1>. $ai- circ,lar )ormall. esta lishe- the r,le that the -eli erate )ilin/ o) m,ltiple complaints to o tain )avora le action constit,tes )or,mGshoppin/ an- shall e a /ro,n- )or s,mmar. -ismissal thereo). e a ca,se )or the s,mmar. -ismissal o) the m,ltiple petition or complaintA

4ccor-in/l., the Garcias cannot p,rs,e sim,ltaneo,s reme-ies in t(o -i))erent )ora. 0his is a practice (hich -e/ra-es the #,-icial process, messes ,p the or-erl. r,les o) proce-,re an- is ve2atio,s an- ,n)air to the other part. in the case. ?e r,le there)ore that the e2ec,tion sale in )avor o) B$C (as s,perior to the sale o) the same propert. . the N/s to the Garcias on 4,/,st 12, 1118. 0he ri/ht o) petitioner B$C to the o(nership an- possession o) the propert., the s,rren-er o) the o(nerMs -,plicate cop. o) 0C0 No. 11>226 coverin/ the s, #ect propert. )or inscription o) the certi)icate o) sale, the cancellation o) 0C0 No. 11>226 an- the iss,ance o) a ne( title in )avor o) B$C, is a))irme- (itho,t pre#,-ice to the ri/ht o) the Garcias to seek reim ,rsement )rom the spo,ses N/. <n vie( o) o,r -isposition o) the )irst iss,e res,ltin/ in the -enial o) the Garcias; petition, the petition o) B$C pra.in/ that it e allo(e- to intervene therein has een ren-ere- moot. 0he Co,rt th,s )in-s it ,nnecessar. to -isc,ss it. ?BCRC'3RC, the petitions are DCN<CD. 0he Resol,tion -ate- 4,/,st 1, 2!!2 iss,e- . this Co,rt -irectin/ the parties to maintain the stat,s +,o as o) 4,/,st 6, 2!!2 is here . li)te- an- set asi-e. 0he Re/istr. o) Dee-s o) I,eJon Cit. is here . or-ere- to cancel 0C0 No. 11>226 in the names o) M.la an- M.lene Garcia an- iss,e a ne( title in )avor o) B$C (itho,t ),rther -ela.. $3 3RDCRCD. G.R. No. 1*6>8= March 1, 2!!>

N40<3N4D B3@$<NG 4@0B3R<0E, petitioner, vs. GR4CC B4P0<$0 CB@RCB an- the C3@R0 3' 4PPC4D$, respon-ents. D C C < $ < 3 N EN4RC$G$4N0<4G3, %. & 0his is a petition )or revie( ,n-er R,le >* o) the R,les o) Co,rt, seekin/ to reverse the Decision o) the Co,rt o) 4ppeals -ate- 'e r,ar. 26, 2!!1,1 an- its Resol,tion -ate- Novem er 8, 2!!2,2 (hich mo-i)ie- the -ecision o) the Re/ional 0rial Co,rt o) I,eJon Cit., Branch 1!, -ate- 'e r,ar. 2*, 111=.8 3n %,ne 18, 1186, respon-ent Grace Baptist Ch,rch 9hereina)ter, the Ch,rch: (rote a letter to petitioner National Bo,sin/ 4,thorit. 9NB4:, mani)estin/ its interest in ac+,irin/ Dots > an- 1= o) the General Mariano 4lvareJ Resettlement Pro#ect in Cavite.> <n its letterGrepl. -ate- %,l. 1, 1186, petitioner in)orme- respon-ent& <n re)erence to .o,r re+,est letter -ate- 18 %,ne 1186, re/ar-in/ .o,r application )or Dots > an- 1=, Block CG8GCD, (e are /la- to in)orm .o, that .o,r re+,est (as /rante- an- .o, ma. no( visit o,r Pro#ect 3))ice at General Mariano 4lvareJ )or processin/ o) .o,r application to p,rchase sai- lots. ?e here . a-vise .o, also that prior to approval o) s,ch application an- in accor-ance (ith o,r e2istin/ policies an- /,i-elines, .o,r other acco,nts (ith ,s shall e maintaine- in /oo- stan-in/.* Respon-ent entere- into possession o) the lots an- intro-,ce- improvements thereon. 6 3n 'e r,ar. 22, 1111, the NB4;s Boar- o) Directors passe- Resol,tion No. 2126, approvin/ the sale o) the s, #ect lots to respon-ent Ch,rch at the price o) P=!!.!! per s+,are meter, or a total price o) P>8!,*!!.!!. = 0he Ch,rch (as -,l. in)orme- o) this Resol,tion thro,/h a letter sent . the NB4.8 3n 4pril 8, 1111, the Ch,rch ten-ere- to the NB4 a mana/er;s check in the amo,nt o) P**,8*!.!!, p,rporte-l. in ),ll pa.ment o) the s, #ect properties.1 0he Ch,rch insiste- that this (as the price +,ote- to them . the NB4 'iel- 3))ice, as sho(n . an ,nsi/ne- piece o) paper (ith a han-(ritten comp,tation scri le- thereon. 1!Petitioner

NB4 ret,rne- the check, statin/ that the amo,nt (as ins,))icient consi-erin/ that the price o) the properties have chan/e-. 0he Ch,rch ma-e several -eman-s on the NB4 to accept their ten-er o) pa.ment, ,t the latter re),se-. 0h,s, the Ch,rch instit,te- a complaint )or speci)ic per)ormance an- -ama/es a/ainst the NB4 (ith the Re/ional 0rial Co,rt o) I,eJon Cit.,11 (here it (as -ockete- as Civil Case No. IG11G11>8. 3n 'e r,ar. 2*, 111=, the trial co,rt ren-ere- its -ecision, the -ispositive portion o) (hich rea-s& ?BCRC'3RC, premises consi-ere-, #,-/ment is here . ren-ere- as )ollo(s& 1. 3r-erin/ the -e)en-ant to reim ,rse to the plainti)) the amo,nt o) P>,21!.!! representin/ the overpa.ment ma-e )or Dots 1, 2, 8, 18, 11 an- 2!A 2. Declarin/ that there (as no per)ecte- contract o) sale (ith respect to Dots > an- 1= an- or-erin/ the plainti)) to ret,rn possession o) the propert. to the -e)en-ant an- to pa. the latter reasona le rental )or the ,se o) the propert. at P2!!.!! per month comp,te- )rom the time it took possession thereo) ,ntil )inall. vacate-. Costs a/ainst -e)en-ant. $3 3RDCRCD.12 3n appeal, the Co,rt o) 4ppeals, a))irme- the trial co,rt;s )in-in/ that there (as in-ee- no contract o) sale et(een the parties. Bo(ever, petitioner (as or-ere- to e2ec,te the sale o) the lots to Grace Baptist Ch,rch at the price o) P=!!.!! per s+,are meter, (ith 6L interest per ann,m )rom March 1111. 0he -ispositive portion o) the Co,rt o) 4ppeals; -ecision, -ate- 'e r,ar. 26, 2!!1, rea-s& ?BCRC'3RC, the appeale- Decision is here . 4''<RMCD (ith the M3D<'<C40<3N that -e)en-antG appellee NB4 is here . or-ere- to sell to plainti))Gappellant Grace Baptist Ch,rch Dots > an- 1= at the price o) P=!!.!! per s+,are meter, or a total cost P>8!,!!!.!! (ith 6L interest per ann,m )rom March, 1111 ,ntil ),ll pa.ment in cash. $3 3RDCRCD.18 0he appellate co,rt r,le- that the NB4;s Resol,tion No. 2126, (hich earlier approve- the sale o) the s, #ect lots to Grace Baptist Ch,rch at the price o) P=!!.!! per s+,are meter, has not een revoke- at an. time an- (as there)ore still in e))ect. 4s a res,lt, the NB4 (as estoppe- )rom )i2in/ a -i))erent price )or the s, #ect properties. Consi-erin/ ),rther that the Ch,rch ha- een occ,p.in/ the s, #ect lots an- even intro-,ce- improvements thereon, the Co,rt o) 4ppeals r,le- that, in the interest o) e+,it., it sho,l- e allo(e- to p,rchase the s, #ect properties. 1> Petitioner NB4 )ile- a Motion )or Reconsi-eration (hich (as -enie- in a Resol,tion -ate- Novem er 8, 2!!2. Bence, the instant petition )or revie( on the sole iss,e o)& Can the NB4 e compelle- to sell the s, #ect lots to Grace Baptist Ch,rch in the a sence o) an. per)ecte- contract o) sale et(een the partiesP Petitioner s, mits that the Co,rt cannot compel it to sell the s, #ect propert. to Grace Baptist Ch,rch (itho,t violatin/ its )ree-om to contract.1* Moreover, it conten-s that e+,it. sho,l- e applie- onl. in the a sence o) an. la( /overnin/ the relationship et(een the parties, an- that the la( on sales an- the la( on contracts in /eneral appl. to the present case.16 ?e )in- merit in petitioner;s s, mission. Petitioner NB4 is not estoppe- )rom sellin/ the s, #ect lots at a price e+,al to their )air market val,e, even i) it )aile- to e2pressl. revoke Resol,tion No. 2126. <t is, a)ter all, horn ook la( that the principle o) estoppel -oes not operate a/ainst the Government )or the act o) its a/ents,1= or, as in this case, their inaction.

3n the application o) e+,it., it appears that the cr,2 o) the controvers. involves the characteriJation o) e+,it. in the conte2t o) contract la(. Preliminaril., (e reiterate that this Co,rt, (hile a(are o) its e+,it. #,ris-iction, is )irst an- )oremost, a co,rt o) la(. ?hile e+,it. mi/ht tilt on the si-e o) one part., the same cannot e en)orce- so as to overr,le positive provisions o) la( in )avor o) the other.18 0h,s, e)ore (e can pass ,pon the propriet. o) an application o) e+,ita le principles in the case at ar, (e m,st )irst -etermine (hether or not positive provisions o) la( /overn. <t is a ),n-amental r,le that contracts, once per)ecte-, in- oth contractin/ parties, an- o li/ations arisin/ there)rom have the )orce o) la( et(een the parties an- sho,l- e complie- (ith in /oo- )aith. 11 Bo(ever, it m,st e ,n-erstoo- that contracts are not the onl. so,rce o) la( that /overn the ri/hts an- o li/ations et(een the parties. More speci)icall., no contract,al stip,lation ma. contra-ict la(, morals, /oo- c,stoms, p, lic or-er or p, lic polic..2! Heril., the mere ine2istence o) a contract, (hich (o,l- or-inaril. serve as the la( et(een the parties, -oes not a,tomaticall. a,thoriJe -isposin/ o) a controvers. ase- on e+,ita le principles alone. Not(ithstan-in/ the a sence o) a per)ecte- contract et(een the parties, their relationship ma. e /overne- . other e2istin/ la(s (hich provi-e )or their reciprocal ri/hts an- o li/ations. <t m,st e remem ere- that contracts in (hich the Government is a part. are s, #ect to the same r,les o) contract la( (hich /overn the vali-it. an- s,))icienc. o) contract et(een in-ivi-,als. 4ll the essential elements ancharacteristics o) a contract in /eneral m,st e present in or-er to create a in-in/ an- en)orcea le Government contract.21 <t appearin/ that there is no -isp,te that this case involves an ,nper)ecte- contract, the Civil Da( principles /overnin/ contracts sho,l- appl.. <n H-a. -e @r ano v. Government $ervice <ns,rance $.stem,22 it (as r,le- that a +,ali)ie- acceptance constit,tes a co,nterGo))er as e2pressl. state- . 4rticle 1811 o) the Civil Co-e. <n sai- case, petitioners o))ere- to re-eem mort/a/e- propert. an- re+,este- )or an e2tension o) the perio- o) re-emption. Bo(ever, the o))er (as not accepte- . the G$<$. <nstea-, it ma-e a co,nterGo))er, (hich petitioners -i- not accept. Petitioners a/ain o))er to pa. the re-emption price on sta//ere- asis. <n -eci-in/ sai- case, it (as hel- that (hen there is a sol,tel. no acceptance o) an o))er or i) the o))er is e2pressl. re#ecte-, there is no meetin/ o) the min-s. $ince petitioners; o))er (as -enie- t(ice . G$<$, it (as hel- that there (as clearl. no meetin/ o) the min-s an-, th,s, no per)ecte- contract. 4ll that is esta lishe- (as a co,nterGo))er.28 <n the case at ar, the o))er o) the NB4 to sell the s, #ect propert., as em o-ie- in Resol,tion No. 2126, (as similarl. not accepte- . the respon-ent.2> 0h,s, the alle/e- contract involve- in this case sho,l- e more acc,ratel. -enominate- as ine2istent. 0here ein/ no conc,rrence o) the o))er an- acceptance, it -i- not pass the sta/e o) /eneration to the point o) per)ection.2* 4s s,ch, it is (itho,t )orce an- e))ect )rom the ver. e/innin/ or )rom its incipienc., as i) it ha- never een entere- into, an- hence, cannot e vali-ate- either . lapse o) time or rati)ication.26 C+,it. can not /ive vali-it. to a voi- contract,2= an- this r,le sho,l- appl. (ith e+,al )orce to ine2istent contracts. ?e note )rom the recor-s, ho(ever, that the Ch,rch, -espite kno(le-/e that its inten-e- contract o) sale (ith the NB4 ha- not een per)ecte-, procee-e- to intro-,ce improvements on the -isp,te- lan-. 3n the other han-, the NB4 kno(in/l. /rante- the Ch,rch temporar. ,se o) the s, #ect properties an- -i- not prevent the Ch,rch )rom makin/ improvements thereon. 0h,s, the Ch,rch an- the NB4, (ho oth acte- in a- )aith, shall e treate- as i) the. (ere oth in /oo- )aith.28 <n this connection, 4rticle >>8 o) the Civil Co-e provi-es& 0he o(ner o) the lan- on (hich an.thin/ has een ,ilt, so(n or plante- in /oo- )aith, shall have the ri/ht to appropriate as his o(n the (orks, so(in/ or plantin/, a)ter pa.ment o) the in-emnit. provi-e- )or in articles *>6 an- *>8, or to o li/e the one (ho ,ilt or plante- to pa. the price o) the lan-, an- the one (ho so(e-, the proper rent. Bo(ever, the ,il-er or planter cannot e o li/e- to ,. the lan- an- i) its val,e is consi-era l. more than that o) the ,il-in/ or trees. <n s,ch case, he shall pa. reasona le rent, i) the o(ner o) the lan- -oes not choose to appropriate the ,il-in/ or trees a)ter proper in-emnit.. 0he parties shall a/ree ,pon the terms o) the lease an- in case o) -isa/reement, the co,rt shall )i2 the terms thereo).

P,rs,ant to o,r r,lin/ in Depra v. D,mlao,21 there is a nee- to reman- this case to the trial co,rt, (hich shall con-,ct the appropriate procee-in/s to assess the respective val,es o) the improvements an- o) the lan-, as (ell as the amo,nts o) reasona le rentals an- in-emnit., )i2 the terms o) the lease i) the parties so a/ree, an- to -etermine other matters necessar. )or the proper application o) 4rticle >>8, in relation to 4rticles *>6 an- *>8, o) the Civil Co-e. ?BCRC'3RC, in vie( o) the )ore/oin/, the petition is GR4N0CD. 0he Co,rt o) 4ppeals; Decision -ate'e r,ar. 26, 2!!1 an- Resol,tion -ate- Novem er 8, 2!!2 are RCHCR$CD an- $C0 4$<DC. 0he Decision o) the Re/ional 0rial Co,rt o) I,eJon Cit.GBranch 1!, -ate- 'e r,ar. 2*, 111=, is RC<N$040CD. 0his case is RCM4NDCD to the Re/ional 0rial Co,rt o) I,eJon Cit., Branch 1!, )or ),rther procee-in/s consistent (ith 4rticles >>8 an- *>6 o) the Civil Co-e. No costs. $3 3RDCRCD. N40<3N4D B3@$<NG 4@0B3R<0E vs. GR4CC B4P0<$0 CB@RCB an- C3@R0 3' 4PPC4D$ '4C0$& 3n %,ne 18, 1186, Respon-ent Grace Baptist Ch,rch (rote a letter to NB4 mani)estin/ their intent to p,rchase Dot > an- 1= o) the General Mariano 4lvareJ Resettlement Pro#ect in Cavite. 0he latter /rante- re+,est hence respon-ent entere- into possession o) the lots an- intro-,ce- improvements thereon. 3n 'e r,ar. 22, 1111, NB4 passe- a resol,tion approvin/ the sale o) the s, #ect lots to respon-ent Ch,rch )or =!! per s+,are meter, a total o) P>8!,*!!. respon-ents (ere -,l. in)orme-. 3n 4pril 8, 1111, respon-ent ch,rch ten-ere- a check amo,ntin/ to P**,8*! conten-in/ that this (as the a/ree- price. NB4 avers statin/ that the price no( 91111: is -i))erent )rom e)ore 91186:. 0he trial co,rt ren-ere- a -ecision in )avo,r o) NB4 statin/ that there (as no contract o) sale, or-erin/ to ret,rn the sai- lots to NB4 an- to pa. NB4 rent o) 2!! pesos )rom the time it took possession o) the lot. Respon-ent Ch,rch appeale- to the C4 (hich a))irms the -ecision o) R0C re/ar-in/ 6no contract o) sale7 ,t mo-i).in/ it . or-erin/ NB4 to e2ec,te the sale o) the sai- lots to Ch,rch )or =!! per s+,are, (ith 6L interest per ann,m )rom March 1111. Petitioner NB4 )ile- a motion )or reconsi-eration (hich (as -enie-. Bence this petition )or revie( on certiorari <$$@C& ?3N NB4 can e compelle- to sell the lots ,n-er market val,eP BCDD& No, eca,se the contract has not een per)ecte-. 0he Ch,rch -espite kno(le-/e that its inten-e- contract o) sale (ith the NB4 ha- not een per)ecteprocee-e- to intro-,ce improvements on the lan-. 3n the other han-, NB4 kno(in/l. /rante- the Ch,rch temporar. ,se o) the s, #ect properties an- -i- not prevent the Ch,rch )rom makin/ improvements thereon. 0h,s the Ch,rch an- NB4, (ho oth acte- in a- )aith shall e treate- as i) the. (ere oth in /oo- )aith. <n this connection 4rt >>8 provi-es& 6the o(ner o) the lan- in (hich an.thin/ has een ,ilt, so(n or plante- in /oo)aith, shall have the ri/ht to appropriate as his o(n the (orks, so(in/ or plantin/, a)ter pa.ment o) the in-emnit. provi-e- )or in articles *>6 an- *>8, or to o li/e the one (ho ,ilt or plante- to pa. the price o) the lan-, anthe one (ho so(e-, the proper rent. Bo(ever, the ,il-er or planter cannot e o li/e- to ,. the lan- an- i) its val,e is consi-era l. more than that o) the ,il-in/ or trees. <n s,ch case, he shall pa. reasona le rent, i) the o(ner o) the lan- -oes not choose to appropriate the ,il-in/ or trees a)ter proper in-emnit.. 0he parties shall a/ree, on case o) -isa/reement, co,rt shall )i2.7

M<D4GR3$ M4N3NG$3NG, #oine. her h,s an-, C4RD<03 M4N3NG$3NG, petitioners, vs. 'CD3MCN4 %@M4I@<3 C$0<M3, CM<D<4N4 %@M4I@<3, N4RC<$3 3R0<F, CCDC$0<N3 3R0<F, R3D3D'3 3R0<F, CRD<ND4 3. 3C4MP3, P4$03R 3R0<F, %R., R3MC3 3R0<F BCN%4M<N DCD4 CR@F, $R., BCN%4M<N DCD4 CR@F, %R., 4@R3R4 N<C3D4$, GD3R<4 R4C4D<3, R3BCR03 DCD4 CR@F, %3$CD<03 DCD4 CR@F anDC3NC<4 $. D3PCF, respon-ents . D C C < $ < 3 N C4RP<3, % .&

0he Case Be)ore this Co,rt is a petition )or revie([1" assailin/ the Decision[2" o) 26 %,ne 1118 an- the Resol,tion o) 21 Decem er 1118 o) the Co,rt o) 4ppeals in C4GG.R. CH No. *16>8. 0he Co,rt o) 4ppeals reverse- the Decision -ate- 1! 4pril 111* o) the Re/ional 0rial Co,rt o) Makati Cit., Branch 18*, in Civil Case No. 12G168*, partitionin/ the propert. in controvers. an- a(ar-in/ to petitioners a portion o) the propert..

4ntece-ent 'acts $po,ses 4/atona G,evarra 96G,evarra7: an- Ciriaco DopeJ ha- si2 96: chil-ren, namel.& 91: Domina-or DopeJA 92: Cnri+,eta DopeJG%,ma+,io, the mother o) respon-ents Cmiliana %,ma+,io Ro-ri/,eJ an- 'elomena %,ma+,io Cstimo 96%,ma+,io sisters7:A 98: Hictor DopeJ, marrie- to respon-ent Deoncia DopeJA 9>: Beni/na DopeJG3rtiJ, the mother o) respon-ents Narciso, Celestino, Ro-ol)o, Pastor %r. an- Romeo 3rtiJ, an- Crlin-a 3rtiJ 3campoA 9*: Rosario DopeJG-ela Cr,J, marrie- to respon-ent Ben#amin -ela Cr,J, $r. an- the mother o) respon-ents Ben#amin %r., Ro erto, an- %oselito, all s,rname- -ela Cr,J, an- o) Gloria -ela Cr,J Raca-io an4,rora -ela Cr,J NicolasA an- 96: Hicente DopeJ, the )ather o) petitioner Mila/ros DopeJ Manon/son/ 96Manon/son/7:. 0he conteste- propert. is a parcel o) lan- on $an %ose $treet, Man,.o @no, Das Pi as, Metro Manila (ith an area o) appro2imatel. 1*2 s+,are meters 96Propert.7:. 0he recor-s -o not sho( that the Propert. is re/istere,n-er the 0orrens s.stem. 0he Propert. is partic,larl. -escri e- in 0a2 Declaration No. BG!!1G!!81! [8" as o,n-ein the north . %,an Gallar-o, so,th . Calle Hela., east . Domin/o Davana an- (est . $an %ose $treet. 0a2 Declaration No. BG!!1G!!81! (as re/istere- (ith the 3))ice o) the M,nicipal 4ssessor o) Das Pi as on 8! $eptem er 118> in the name o) 6Beni/na DopeJ, et al7. [>" Bo(ever, the improvements on the portion o) the Propert. -enominate- as No. 881 $an %ose $t., Man,.o @no, Das Pi as (ere separatel. -eclare- in the name o) 6'ilomena %. Cstimo7 ,n-er 0a2 Declaration No. 1!G!!1G!21>* -ate- 1> 3cto er 1111.[*" Mila/ros an- Carlito Manon/son/ 96petitioners7: )ile- a Complaint [6" on 11 %,ne 1112, alle/in/ that Manon/son/ an- respon-ents are the o(ners pro in-iviso o) the Propert.. <nvokin/ 4rticle >1> o) the Civil Co-e, [=" petitioners pra.e- )or the partition an- a(ar- to them o) an area e+,ivalent to oneG)i)th 915*: o) the Propert. or its prevailin/ market val,e, an- )or -ama/es. Petitioners alle/e- that G,evarra (as the ori/inal o(ner o) the Propert.. @pon G,evarra;s -eath, her chil-ren inherite- the Propert.. $ince Domina-or DopeJ -ie- (itho,t o))sprin/, there (ere onl. )ive chil-ren le)t as heirs o) G,evarra. Cach o) the )ive chil-ren, incl,-in/ Hicente DopeJ, the )ather o) Manon/son/, (as entitle- to a )i)th o) the Propert.. 4s Hicente DopeJ; sole s,rvivin/ heir, Manon/son/ claims her )ather;s 15* share in the Propert. . ri/ht o) representation. 0here is no -isp,te that respon-ents, (ho are the s,rvivin/ spo,ses o) G,evarra;s chil-ren an- their o))sprin/, have een in possession o) the Propert. )or as lon/ as the. can remem er. 0he area act,all. occ,pie- . each respon-ent )amil. -i))ers, ran/in/ in siJe )rom appro2imatel. 2* to *! s+,are meters. Petitioners are the onl. -escen-ants not occ,p.in/ an. portion o) the Propert..

Most respon-ents, speci)icall. Narciso, Ro-ol)o, Pastor %r., an- Celestino 3rtiJ, an- Crlin-a 3rtiJ 3campo 963rtiJ )amil.7:, as (ell as Ben#amin $r., Ben#amin %r., an- Ro erto -ela Cr,J, 4,rora -ela Cr,J Nicolas anGloria Dela Cr,J Raca-io 96Dela Cr,J )amil.7:, entere- into a compromise a/reement (ith petitioners. @n-er the $tip,lation o) 'acts an- Compromise 4/reement [8" -ate- 12 $eptem er 1112 964/reement7:, petitioners anthe 3rtiJ an- Dela Cr,J )amilies a/ree- that each /ro,p o) heirs (o,l- receive an e+,al share in the Propert.. 0he si/natories to the 4/reement aske- the trial co,rt to iss,e an or-er o) partition to this e))ect anpra.e- ),rther that 6those (ho have e2cee-e- sai- oneG)i)th 915*: m,st e re-,ce- so that those (ho have less an- those (ho have none shall /et the correct an- proper portion.7[1" 4mon/ the respon-ents, the %,ma+,io sisters an- Deoncia DopeJ (ho each occ,p. *! s+,are meter portions o) the Propert. an- %oselito -ela Cr,J, -i- not si/n the 4/reement. [1!"Bo(ever, onl. the %,ma+,io sisters activel. oppose- petitioners; claim. 0he %,ma+,io sisters conten-e- that %,stina Navarro 96Navarro7:, s,ppose-l. the mother o) G,evarra, sol- the Propert. to G,evarra;s -a,/hter Cnri+,eta DopeJ %,ma+,io. 0he %,ma+,io sisters presente- provincial 0a2 Declaration No. 111 [11" )or the .ear 11>1 in the sole name o) Navarro. 0a2 Declaration No. 111 -escri e- a resi-ential parcel o) lan- (ith an area o) 1=2.*1 s+,are meters, locate- on $an %ose $t., Man,.o, Das Pias, RiJal (ith the )ollo(in/ o,n-aries& %,an Gallar-o to the north, <. G,evarra $treet to the so,th, RiJal $treet to the east an- $an %ose $treet to the (est. <n a--ition, 0a2 Declaration No. 111 state- that the ho,ses o) Q4/atona DopeJQ an- QCnri+,ita DopeJQ stoo- on the Propert. as improvements. 0he %,ma+,io sisters also presente- a notariJe- N4$@D404N $4 B<D<B4N NG D@P4 [12" 96Nas,latan7: -ate- 11 3cto er 11*=, the relevant portion o) (hich states& 4N3 $< %@$0<N4 N4H4RR3, sapat an/ /,lan/, ma. asa(a, Pilipino at naninirahan sa D4$ P<4$, a. si.an/ na/maGma.Gari at na/tatan/kilik n/ isan/ la/a. na l,pa na matata/p,an sa Man,.o, Das Pias, RiJal, lihis sa anoman/ pa/kaka,tan/ lalon/ napa/kikilala sa pamama/itan n/ m/a s,m,s,no- na palatan-aan& B3@ND4R<C$& N3R0B& %@4N G4DD4RD3 $3@0B& <. G@CH4RR4 $0. C4$0& R<F4D $0., ?C$0& $4N %3$C $0., na ma. s,kat na 1=2.*1 metros c,a-ra-os na ma. 04K DCCD4R40<3N B<D4NG 111. N4 D4B<D 40 4D4NG 4D4NG sa hala/an/ D4D4?4NG D44N D<M4NGP@NG P<$3 9P2*!.!!:, $4D4P<NG P<D<P<N3, na sa akin a. kali(an/ inia ot at i ina.a- ni CNR<I@C04 D3PCF, ma. sapat na /,lan/, Pilipino, ma. asa(a at naninirahan sa Das Pias, RiJal, at sa karapatan/ ito a. akin/ pinat,t,na.an n/ pa/kakatan//ap n/ nasa in/ hala/a na ,on/ kasi.ahan n/ akin/ kaloo an a. akin/ <P<N4GB<D<, <$<N4D<N 40 <N<D<P40 sa nasa in/, CNR<I@C04 D3PCF, sa kan.an/ m/a ta/apa/mana at kahalili, an/ ka ,,an/ s,kat n/ l,pan/ na an//it sa itaas nito sa pamama/itan n/ ilihan/ (alan/ anoman/ pas, ali. 4n/ l,pan/ ito a. (alan/ kasama at hin-i taniman n/ pala. o mais. $im,la sa ara( na ito a. akin/ ililipat an/ pa/mama.Gari at pa/tatan/kilik n/ nasa in/ l,pa ka. CNR<I@C04 D3PCF sa kanilan/5kan.an/ ta/apa/mana at kahalili 2 2 2. 0he Clerk o) Co,rt o) the Re/ional 0rial Co,rt o) Manila certi)ie- on 1 %,ne 111> that the 6RN4$@D404N $4 B<D<B4N NG D@P4;, et(een %,stina Navarro 9Na/ ili: an- Cnri+,eta DopeJ 9B,mili:, (as notariJe- . 4tt.. R,perto I. 4n-ra-a on 11 3cto er 11*= an- entere- in his Notarial Re/ister 222.7 [18" 0he certi)ication ),rther state- that 4tt.. 4n-ra-a (as a -,l. appointe- notar. p, lic )or the Cit. o) Manila in 11*=. Beca,se the %,ma+,io sisters (ere in peace),l possession o) their portion o) the Propert. )or more than thirt. .ears, the. also invoke- the -e)ense o) ac+,isitive prescription a/ainst petitioners, an- char/e- that petitioners (ere /,ilt. o) laches. 0he %,ma+,io sisters ar/,e- that the present action sho,l- have een )ile- .ears earlier, either . Hicente DopeJ (hen he (as alive or . Manon/son/ (hen the latter reache- le/al a/e. <nstea-, petitioners )ilethis action )or partition onl. in 1112 (hen Manon/son/ (as alrea-. 88 .ears ol-.

0he R,lin/ o) the 0rial Co,rt 4)ter trial on the merits, the trial co,rt in its Decision [1>" o) 1! 4pril 111* r,le- in )avor o) petitioners. 0he trial co,rt hel- that the Nas,latan (as voi-, even a sent evi-ence attackin/ its vali-it.. 0he trial co,rt -eclare-& <t appears that the o(nership o) the estate in +,estion is controverte-. 4ccor-in/ to -e)en-ants %,ma+,ios, it pertains to them thro,/h conve.ance . means o) a Dee- o) $ale e2ec,te- . their common ancestor %,stina Navarro to their mother Cnri+,eta, (hich -ee- (as presente- in evi-ence as C2hs. 6>7 to 6>G47. Plainti)) Mila/ros Manon/son/ -e ,nks the evi-ence as )ake. 0he -oc,ment o) sale, in the o servance o) the Co,rt, is ho(ever -,l. a,thenticate- . means o) a certi)icate iss,e- . the R0C o) the Manila Clerk o) Co,rt as -,l. notariJe- p, lic -oc,ment 9C2h. 6*7:. No co,ntervailin/ proo) (as a--,ce- . plainti))s to overcome or imp,/n the -oc,ment;s le/alit. or its vali-it.. 222 0he conve.ance ma-e . %,stina Navarro is s, #ect to n,llit. eca,se the propert. conve.e- ha- a con#,/al character. No positive evi-ence ha- een intro-,ce- that it (as solel. a paraphernal propert.. 0he name o) %,stina Navarro;s spo,se5h,s an- (as not mentione- an-5or (hether the h,s an- (as still alive at the time the conve.ance (as ma-e to %,stina Navarro. 4/atona G,evarra as her comp,lsor. heir sho,l- have the le/al ri/ht to participate (ith the -istri ,tion o) the estate ,n-er +,estion to the e2cl,sion o) others. $he is entitle- to her le/itime. 0he Dee- o) $ale [C2hs 6>7 O 6>G179sic:" -i- not at all provi-e )or the reserve- le/itime or the heirs, an-, there)ore it has no )orce an- e))ect a/ainst 4/atona G,evarra an- her si2 96: le/itimate chil-ren incl,-in/ the /ran-chil-ren, . ri/ht o) representation, as -escri e- in the or-er o) intestate s,ccession. 0he same Dee- o) $ale sho,l- e -eclare- a n,llit. a initio. 0he la( on the matter is clear. 0he comp,lsor. heirs cannot e -eprive- o) their le/itime, e2cept on 9sic: cases e2pressl. speci)ie- . la( like )or instance -isinheritance )or ca,se. 222 9Cmphasis s,pplie-: $ince the other respon-ents ha- entere- into a compromise a/reement (ith petitioners, the -ispositive portion o) the trial co,rt;s -ecision (as -irecte- a/ainst the %,ma+,io sisters onl., as )ollo(s& ?BCRC'3RC, premises consi-ere-, #,-/ment is here . ren-ere- in )avor o) plainti))s an- a/ainst the remainin/ active -e)en-ants, Cmiliana %,ma+,io an- 'elomena %. Cstimo, #ointl. an- severall. , or-erin/& 1. 0hat the propert. consistin/ o) 1*2 s+,are meters re)erre- to a ove e imme-iatel. partitione- /ivin/ plainti)) Mila/ros DopeJGManon/son/ her la(),l share o) 15* o) the area in s+,are meters, or the prevailin/ market val,e on the -ate o) the -ecisionA 2. De)en-ants to pa. plainti))s the s,m o) P1!,!!!.!! as compensator. -ama/es )or havin/ -eprive- the latter the ,se an- en#o.ment o) the )r,its o) her 15* shareA 8. De)en-ants to pa. plainti))s; liti/ation e2penses an- attorne.;s )ee in the s,m o) P1!,!!!.!!A an>. De)en-ants to pa. the costs o) s,it. $3 3RDCRCD.[1*" 9Cmphasis s,pplie-: ?hen the trial co,rt -enie- their motion )or reconsi-eration, the %,ma+,io sisters appeale- to the Co,rt o) 4ppeals.

0he R,lin/ o) the Co,rt o) 4ppeals Petitioners, in their appellee;s rie) e)ore the Co,rt o) 4ppeals, presente- )or the )irst time a s,pposephotocop. o) the -eath certi)icate[16" o) G,evarra, (hich state- that G,evarra;s mother (as a certain %,liana

Gallar-o. Petitioner also attache- an a))i-avit[1=" )rom Ben#amin -ela Cr,J, $r. attestin/ that he kne( %,stina Navarro onl. . name an- ha- never met her personall., altho,/h he ha- live- )or some .ears (ith 4/atona G,evarra a)ter his marria/e (ith Rosario DopeJ. 3n the asis o) these -oc,ments, petitioners assaile- the /en,ineness an- a,thenticit. o) theNas,latan. 0he Co,rt o) 4ppeals re),se- to take co/niJance o) the -eath certi)icate an- a))i-avit presenteon the /ro,n- that petitioners never )ormall. o))ere- these -oc,ments in evi-ence. 0he appellate co,rt ),rther hel- that the petitioners (ere ori/inal o(ner o) the Propert., as )ollo(s& o,n. petitioners

. their a-mission that Navarro (as the

Moreover, plainti))sGappellees themselves a-mitte- e)ore the trial co,rt that %,stina Navarro an- not %,liana Gallar-o (as the ori/inal o(ner o) the s, #ect propert. an- (as the mother o) 4/atona Navarro 9sic:. Plainti))sG appellees in their Repl.GMemoran-,m averre-& 64s re/ar-s the e2istence o) common o(nership, the -e)en-ants clearl. a-mit as )ollo(s& 222 222 RBistor. o) this case tells ,s that ori/inall. the propert. (as o(ne- . %@$0<N4 N4H4RR3 (ho has a -a,/hter . the name o) 4G403N4 G@CH4RR4 (ho on the other han- has si2 chil-ren namel.& 222 222 222.; (hich pointGo,t that coGo(nership e2ists on the propert. et(een the parties. $ince this is the a-mitte- histor., )acts o) the case, it )ollo(s that there sho,l- have een proper -oc,ment to e2tin/,ish this stat,s o) coGo(nership et(een the common o(ners either . 91: Co,rt action or proper -ee- o) tra-ition, 222 222 222.7 0he trial co,rt con)irms these a-missions o) plainti))sGappellees. 6222 222 ?ith the parties; a-missions an- their con)ormit. to a )act,al common line o) relationship o) the heirs (ith one another, it has een elicite- ascen-ant %,stina Navarro is the common ancestor o) the heirs herein mentione-, ho(ever, it m,st e note- that the parties )aile- to ampli). (ho (as the h,s an- an- the n,m er o) comp,lsor. heirs o) %,stina Navarro. 222 222 2227 0here)ore, plainti))sGappellees cannot no( e hear- contestin/ the )act that %,stina Navarro (as their common ancestor an- (as the ori/inal o(ner o) the s, #ect propert.. 0he Co,rt o) 4ppeals ),rther hel- that the trial co,rt erre- in ass,min/ that the Propert. (as con#,/al in nat,re (hen Navarro sol- it. 0he appellate co,rt reasone- as )ollo(s& Bo(ever, it is a settle- r,le that the part. (ho invokes the pres,mption that all propert. o) marria/e elon/s to the con#,/al partnership, m,st )irst prove that the propert. (as ac+,ire- -,rin/ the marria/e. Proo) o) ac+,isition -,rin/ the covet,re is a con-ition sine +,a non )or the operation o) the pres,mption in )avor o) con#,/al o(nership. <n this case, not a sin/le iota o) evi-ence (as s, mitte- to prove that the s, #ect propert. (as ac+,ireNavarro -,rin/ her marria/e. 222 0he )in-in/s o) the trial co,rt that the s, #ect propert. is con#,/al in nat,re is not s,pporte. %,stina 0he trial co,rt hel-& 222 222

. an. evi-ence.

0o the contrar., recor-s sho( that in 11>1 the s, #ect propert. (as -eclare-, )or ta2ation p,rposes ,n-er the name o) %,stina Navarro alone. 0his in-icates that the lan- is the paraphernal propert. o) %,stina Navarro. 'or these reasons, the Co,rt o) 4ppeals reverse- the -ecision o) the trial co,rt, th,s& ?BCRC'3RC, )ore/oin/ consi-ere-, the appeale- -ecision is here . RCHCR$CD an- $C0 4$<DC. 4 ne( one is here . ren-ere- D<$M<$$<NG plainti))sGappellees; complaint in so )ar as -e)en-antsGappellants are concerne-. Costs a/ainst plainti))sGappellees. $3 3RDCRCD.[18" 1. <ncha,sti vs Crom(ell, 2! Phil 8>* 'acts& <ncha,sti is en/a/e- in the ,siness o) ,.in/ an- sellin/ at (holesale hemp, oth )or its o(n acco,nt anon commission. <t is c,stomar. to sell hemp in ales (hich are ma-e . compressin/ the loose )i er . means o) presses, coverin/ t(o si-es o) the ale (ith mattin/, an- )astenin/ it . means o) strips o) rattanA that the operation o) ailin/ hemp is -esi/nate- amon/ merchants . the (or- 6prensa#e.7 <n all sales o) hemp . <ncha,sti, the price is +,ote- to the ,.er at so m,ch per pic,l, no mention ein/ ma-e o) ailin/. <t is (ith the tacit ,n-erstan-in/ that the hemp (ill e -elivere- in ales. 0he amo,nt -epen-s ,n-er the -enomination o) 6prensa#e7 or the ale- hemp. C<R ma-e -eman- in (ritin/ ,pon <ncha,sti )or the pa.ment o) the s,m o) P1,8=!.68 as a ta2 o) one thir- o) one per cent on the s,ms o) mone. mentione- as a//re/ate s,m collecte- as prensa#e or the ale- hemp. <ncha,sti pai- ,pon protest, conten-in/ that the collecte- amo,nt is ille/al ,pon the /ro,n- that the sai- char/e -oes not constit,te a part o) the sellin/ price o) the hemp, ,t is a char/e ma-e )or the service o) alin/ the hemp.

<ss,e& ?3N the ale- hemp constit,tes a contract o) sale or a contract )or a piece o) (orkP

R,lin/& Contract o) sale. 0he -istinction et(een a contract o) sale an- one )or (ork, la or, an- materials is teste. the in+,ir. (hether the thin/ trans)erre- is one no in e2istence an- (hich never (o,l- have e2iste- ,t )or the or-er o) the part. -esirin/ to ac+,ire it, or a thin/ (hich (o,l- have e2iste- an- een the s, #ect o) sale to some other person, even i) the or-er ha- not een /iven. <t is clear that in the case at ar, the hemp (as in e2istence in ale- )orm e)ore the a/reements o) sale (ere ma-e, or, at least, (o,l- have een in e2istence even i) none o) the in-ivi-,al sales here in +,estion ha- een cons,mmate-. <t (o,l- have een ale-, nevertheless, )or sale to someone else, since, accor-in/ to the a/reestatement o) )acts, it is c,stomar. to sell hemp in ales. ?hen a person stip,lates )or the ),t,re sale o) articles (hich he is ha it,all. makin/, an- (hich at the time are not ma-e or )inishe-, it is essentiall. a contract o) sale an- not a contract )or la or. <t is other(ise (hen the article is ma-e p,rs,ant to a/reement. <) the article or-ere. the p,rchaser is e2actl. s,ch as the plainti)) makes an- keeps on han- )or sale to an.one, an- no chan/e or mo-i)ication o) it is ma-e at the -e)en-ant;s re+,est, it is a contract o) sale, even tho,/h it ma. e entirel. ma-e a)ter, an- in conse+,ence o), the -e)en-ant;s or-er )or it.

Balin/ (as per)orme- )or the /eneral market an- (as not somethin/ -one . plainti)) (hich (as a res,lt o) an. pec,liar (or-in/ o) the partic,lar contract et(een him an- his ven-ee. 3ne (ho e2poses /oo-s )or sale in the

market m,st have them in marketa le )orm. 0he hemp in +,estion (o,l- not have een in that con-ition i) it hanot een ale-. 0he alin/, there)ore, (as nothin/ pec,liar to the contract et(een the plainti)) an- his ven-ee. <t (as precisel. the same contract that (as ma-e . ever. other seller o) hemp. <t res,lte- simpl. in the trans)er o) title to /oo-s alrea-. prepare- )or the /eneral market.

9M4E BC 3M<00CD: Balin/ is per)orme- e)ore the sale. 0he p,rchaser o) hemp o(es to the seller nothin/ (hatever . reason o) their contract e2cept the val,e o) the hemp -elivere-. 0hat val,e, that s,m (hich the p,rchaser pa.s to the ven-ee, is the tr,e sellin/ price o) the hemp, an- ever. item (hich enters into s,ch price is a part o) s,ch sellin/ price. B. )orce o) the c,stom prevailin/ amon/ hemp -ealers in the Philippine <slan-s, a p,rchaser o) hemp in the market, ,nless he e2pressl. stip,lates that it shall e -elivere- to him in loose )orm, o li/ates himsel) to p,rchase an- pa. )or ale- hemp.

<t is ,n-o, te- that the ven-ees, in the sales re)erre- to in the case at ar, (o,l- have no ri/ht, a)ter havin/ ma-e their contracts, to insists on the -eliver. o) loose hemp (ith the p,rpose in vie( themselves to per)orm the alin/ an- th,s save =* centavos per ale. <t is ,n+,estione- that the seller, the plainti)), (o,l- have stoo- ,pon his ori/inal contract o) sale, that is, the o li/ation to -eliver ale- hemp, an- (o,l- have )orce- his ven-ees to accept ale- hemp, he himsel) retainin/ amon/ his o(n pro)its those (hich accr,e- )rom the procee- o) alin/. 0h,s, the contract ein/ that o) a sale, <ncha,sti is char/ea le )or the amo,nt o) ta2 not on the ra( hemp sol- alone. ase- on the ale- hemp an-