OSMEA VS. CA (GR NO.

L-56545, JANUARY 28, 1983)

FACTS: Sps. Pedro Quimbo and Leonadiza Quimbo instituted an

action for damages against petitioner company and Carmen
Siguenza and Helena Siguenza. In their complaint, spouses
Quimbo alleges the following:

On June 3, 1971, a Contract of Sale for 2 lots was executed in

favor of the Sps. Quimbo and petitioners Siguenza and petitioner
company located at Clarita Subdivision, Cebu City at the price of
P15,200.00.

Prior to the first month installment, the Quimbos wanted to

purchase the subject lots in full before the due date of the first
installment, but instead petitioners Siguenza proposed to exchange
another lots with the same area previously purchased by the
Quimbos which they did not agree.

Sps. Quimbo learned that the subject lot had already been
sold to Dr. Francisco Maningo and that Transfer Certificate of Titles
of the 2 lots were issued in favor of Irenea Maningo on September
1970.

A favorable decision was rendered unto the private

respondents.

ISSUE: WON THE CONTRACT OF SALE IS VALID?

HELD: NO. Defendants have conveyed and disposed the lots to

the Quimbos at a time when they were no longer the owners
thereof. At the time of the execution of the contract of sale, their
only interest thereon was a mortgage lien. As a mortgagee they did
not have the right to sell the same. Petitioners have acted palpable
malice, bad faith, wantonness and incurable dishonesty as they did
not reveal the fact to the Quimbos and they relied on their
assurances that the lots belong to them.

Meaning

Palpable obvious and noticeable

Conceal - to hide something from sight.

Detestable- causing or deserving strong dislike

Obnoxious unpleasant in a way that makes people feel offended,

annoyed or disgusted

- Odiously or disgustingly objectionablehighly offensive