The basic characteristic then of a simulated contract is that it is not really

The basic characteristic then of a simulated contract

This preview shows page 6 - 8 out of 66 pages.

The basic characteristic then of a simulated contract is that it is not really desired or intended to produce legal effects or does not in any way alter the juridical situation of the parties. The cancellation of Mendoza’s certificate of title over the property and the procurement of one in its stead in the name of respondents, which acts were directed towards the fulfillment of the purpose of the contract, unmistakably show the parties’ intention to give effect to their agreement. The claim of simulation does not thus lie. 5) SPOUSES MAPALO vs. MAXIMO MAPALO FACTS: Spouses Miguel Mapalo and Candida Quiba, simple illiterate farmers, were registered owners of residential land in Manaoag, Pangasinan. They donated the eastern part of their land to Miguel Mapalo however they were deceived into signing a deed of absolute sale over the entire land. Following the execution of the afore-stated document, the spouses Miguel Mapalo and Candida Quiba immediately built a fence of permanent structure in the middle of their land segregating the eastern portion from its western portion. Said fence still exists. The spouses have always been in continued
Image of page 6
possession over the western half of the land up to the present. Maximo Mapala registered the land to his name and sold it to the Narcisos. They subsequently registered it to their name. The Narcisos took possession only of the eastern portion of the land in 1951, after the sale in their favor was made. On February 7, 1952 they filed suit in the Court of First Instance of Pangasinan (Civil Case No. 1191) to be declared owners of the entire land, for possession of its western portion; for damages; and for rentals. It was brought against the Mapalo spouses as well as against Floro Guieb and Rosalia Mapalo Guieb who had a house on the western part of the land with the consent of the spouses Mapalo and Quiba. The Narcisos appealed to the Court of Appeals. In its decision on May 28, 1963, the Court of Appeals reversed the judgment of the Court of First Instance, solely on the ground that the consent of the Mapalo spouses to the deed of sale of 1936 having been obtained by fraud, the same was voidable, not void ab initio , and, therefore, the action to annul the same, within four years from notice of the fraud, had long prescribed. It reckoned said notice of the fraud from the date of registration of the sale on March 15, 1938. The Court of First Instance and the Court of Appeals are therefore unanimous that the spouses Mapalo and Quiba were definitely the victims of fraud. It was only on prescription that they lost in the Court of Appeals. The plaintiffs only assailed the validity of the sale with respect to the western portion of the land. ISSUE: Whether there was an onerous conveyance of ownership, that is, a sale, by virtue of said deed of October 15, 1936, with respect to said western portion. Specifically, was there a cause or consideration to support the existence of a contrary of sale?
Image of page 7
Image of page 8

You've reached the end of your free preview.

Want to read all 66 pages?

  • Fall '15
  • Sale

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture