THEIS v CA [G.R. No. 126013. February 12, 1997.] SPOUSES HEINZRICH THEIS AND BETTY THEIS, petitioners, vs.
HONORABLE COURT OF APPEALS, HONORABLE ELEUTERIO GUERRERO, ACTING PRESIDING JUDGE, BRANCH XVIII,
REGIONAL TRIAL COURT, TAGAYTAY CITY, CALSONS DEVELOPMENT CORPORATION, respondents.
FACTS:
Private respondent Calsons Development Corporation is the owner of three (3) adjacent parcels of land covered by Transfer Certificate of Title (TCT) Nos. 15515 (parcel no. 1 in the location map), 15516 (parcel no. 2) and 15684 (parcel no. 3), with the area of 1,000 square meters, 226 square meters and 1,000 square meters, respectively.
On October 26, 1987, unaware of the mistake by which private respondent appeared to be the owner of parcel no. 4 as indicated in the erroneous survey, and based on the erroneous information given by the surveyor that parcel no. 4 is covered by TCT No. 15516 and 15684, private respondent, through its authorized representative, one Atty. Tarcisio S. Calilung, sold said parcel no. 4 to petitioners. All three parcels of land are situated along Ligaya Drive, Barangay Francisco, Tagaytay City. Adjacent to parcel no. 3, which is the lot covered by TCT No. 15684 is a vacant lot denominated as parcel no. 4.
Upon execution of the Deed of Sale, private respondent delivered TCT Nos. 15516 and 15684 to petitioners who, on October 28, 1987, immediately registered the same with the Registry of Deeds of Tagaytay City. Thus, TCT Nos. 17041 and 17042 in the names of the petitioners were issued.
In the early part of 1990, petitioners returned to the Philippines. When they went to Tagaytay to look over the vacant lots and to plan the construction of their house thereon, they discovered that parcel no. 4 was owned by another person. They also discovered that the lots actually sold to them were parcel nos. 2 and 3 covered by TCT Nos. 15516 and 15684. respectively. Parcel no. 3, however, could not have been sold to the petitioners by the private respondents as a two-storey house, the construction cost of which far exceeded the price paid by the petitioners, had already been built thereon even prior to the execution of the contract between the disputing parties.
Petitioners insisted that they wanted parcel no. 4, which is the idle lot adjacent to parcel no. 3, and persisted in claiming that it was parcel no. 4 that private respondent sold to them. However, private respondent could not have possibly sold the same to them for it did not own parcel no. 4 in the first place.
FACTS:
Private respondent Calsons Development Corporation is the owner of three (3) adjacent parcels of land covered by Transfer Certificate of Title (TCT) Nos. 15515 (parcel no. 1 in the location map), 15516 (parcel no. 2) and 15684 (parcel no. 3), with the area of 1,000 square meters, 226 square meters and 1,000 square meters, respectively.
On October 26, 1987, unaware of the mistake by which private respondent appeared to be the owner of parcel no. 4 as indicated in the erroneous survey, and based on the erroneous information given by the surveyor that parcel no. 4 is covered by TCT No. 15516 and 15684, private respondent, through its authorized representative, one Atty. Tarcisio S. Calilung, sold said parcel no. 4 to petitioners. All three parcels of land are situated along Ligaya Drive, Barangay Francisco, Tagaytay City. Adjacent to parcel no. 3, which is the lot covered by TCT No. 15684 is a vacant lot denominated as parcel no. 4.
Upon execution of the Deed of Sale, private respondent delivered TCT Nos. 15516 and 15684 to petitioners who, on October 28, 1987, immediately registered the same with the Registry of Deeds of Tagaytay City. Thus, TCT Nos. 17041 and 17042 in the names of the petitioners were issued.
In the early part of 1990, petitioners returned to the Philippines. When they went to Tagaytay to look over the vacant lots and to plan the construction of their house thereon, they discovered that parcel no. 4 was owned by another person. They also discovered that the lots actually sold to them were parcel nos. 2 and 3 covered by TCT Nos. 15516 and 15684. respectively. Parcel no. 3, however, could not have been sold to the petitioners by the private respondents as a two-storey house, the construction cost of which far exceeded the price paid by the petitioners, had already been built thereon even prior to the execution of the contract between the disputing parties.
Petitioners insisted that they wanted parcel no. 4, which is the idle lot adjacent to parcel no. 3, and persisted in claiming that it was parcel no. 4 that private respondent sold to them. However, private respondent could not have possibly sold the same to them for it did not own parcel no. 4 in the first place.
The mistake in the identity of the lots is traceable to the erroneous survey conducted in 1985.
To remedy the mistake, private respondent offered parcel nos. 1 and 2 covered by TCT Nos. 15515 and 15516, respectively, as these
two were precisely the two vacant lots which private respondent owned and intended to sell when it entered into the transaction with
petitioners. Petitioners adamantly rejected the good faith offer. They refused to yield to reason and insisted on taking parcel no. 3,
covered by TCT No. 155864 and upon which a two-storey house stands, in addition to parcel no. 2, covered by TCT No. 15516, on the
ground that these TCTs have already been cancelled and new ones issued in their name. Private respondent was then compelled to file
an action for annulment of deed of sale and reconveyance of the properties subject thereof 1 in the Regional Trial Court.
DECISIONS OF LOWER COURTS:
(1) Trial Court: rendered judgment in favor of private respondent.
(2) Court of Appeals: affirmed the trial court decision.
ISSUE:
Whether the sale is voidable
RULING:
Yes
Private respondent committed an honest mistake in selling parcel no. 4. As correctly noted by the Court of Appeals, it is quite impossible for private respondent to sell the lot in question as the same is not owned by it. The good faith of the private respondent is evident in the fact that when the mistake was discovered, it immediately offered two other vacant lots to the petitioners or to reimburse them with twice the amount paid. That petitioners refused either option left the private respondent with no other choice but to file an action for the annulment of the deed of sale on the ground of mistake. Art. 1331 of the New Civil Code provides for the situations whereby mistake may invalidate consent. The concept of error in this article must include both ignorance, which is the absence of knowledge with respect to a thing and mistake properly speaking, which is a wrong conception about said thing, or a belief in the existence of some circumstance, fact, or event, which in reality does not exist. In both cases, there is a lack of full and correct knowledge about the thing. The mistake committed by the private respondent in selling parcel no. 4 to the petitioners falls within the second type. Verily, such mistake invalidated its consent and as such, annulment of the deed of sale is proper. The petitioners cannot be justified in their insistence that parcel no. 3, upon which private respondent constructed a two-storey house, be given to them in lieu of parcel no. 4. The cost of construction for the said house far exceeds the amount paid by the petitioners to the private respondent. Moreover, parcel no. 4, the lot mistakenly sold, was a vacant lot. Thus, to allow the petitioners to take parcel no. 3 would be to countenance unjust enrichment. Considering that petitioners intended at the outset to purchase a vacant lot, their refusal to accept the offer of the private respondent to give them two (2) other vacant lots in exchange, as well as their insistence on parcel no. 3, which is a house and lot, is manifestly unreasonable.
DECISIONS OF LOWER COURTS:
(1) Trial Court: rendered judgment in favor of private respondent.
(2) Court of Appeals: affirmed the trial court decision.
ISSUE:
Whether the sale is voidable
RULING:
Yes
Private respondent committed an honest mistake in selling parcel no. 4. As correctly noted by the Court of Appeals, it is quite impossible for private respondent to sell the lot in question as the same is not owned by it. The good faith of the private respondent is evident in the fact that when the mistake was discovered, it immediately offered two other vacant lots to the petitioners or to reimburse them with twice the amount paid. That petitioners refused either option left the private respondent with no other choice but to file an action for the annulment of the deed of sale on the ground of mistake. Art. 1331 of the New Civil Code provides for the situations whereby mistake may invalidate consent. The concept of error in this article must include both ignorance, which is the absence of knowledge with respect to a thing and mistake properly speaking, which is a wrong conception about said thing, or a belief in the existence of some circumstance, fact, or event, which in reality does not exist. In both cases, there is a lack of full and correct knowledge about the thing. The mistake committed by the private respondent in selling parcel no. 4 to the petitioners falls within the second type. Verily, such mistake invalidated its consent and as such, annulment of the deed of sale is proper. The petitioners cannot be justified in their insistence that parcel no. 3, upon which private respondent constructed a two-storey house, be given to them in lieu of parcel no. 4. The cost of construction for the said house far exceeds the amount paid by the petitioners to the private respondent. Moreover, parcel no. 4, the lot mistakenly sold, was a vacant lot. Thus, to allow the petitioners to take parcel no. 3 would be to countenance unjust enrichment. Considering that petitioners intended at the outset to purchase a vacant lot, their refusal to accept the offer of the private respondent to give them two (2) other vacant lots in exchange, as well as their insistence on parcel no. 3, which is a house and lot, is manifestly unreasonable.
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