Dizon vs. Ca

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

DIZON VS.

CA
G.R. No. 122544 January 28, 1999

FACTS:
On 1974, Private respondent Overland Express Lines, Inc entered into a Contract of
Lease with Option to buy with petitioners involving a land situated at Quezon City for one
(1) year. During that period the respondent was granted an option to purchase the land.
In 1976, for failure of lessee to pay the rentals the petitioners filed an action for
ejectment. The City Court rendered judgment ordering lessee to vacate the leased premises
and to pay the rentals in arrears and damages with interests. Lessee filed a petition enjoining
the enforcement of said judgment and dismissal of the case for lack of jurisdiction. Such
petition was denied.
Thereafter, lessee filed for an action for specific performance to compel the execution
of a deed of sale pursuant to the option to purchase and the receipt of the partial
consideration given to Alice Dizon and for the fixing of period to pay the balance. Respondent
Court of Appeals rendered a decision upholding the jurisdiction of City Court and concluding
that there was a perfected contract of sale between the parties due to the said partial
payment. Petitioner’s motion for reconsideration was denied by the respondent Court.

ISSUE:
Whether or not the contract of sale between petitioners and private respondent is
perfected.

RULING:
There was no perfected contract of sale between the parties. Under Article 1475 of
the New Civil Code, "the contract of sale is perfected at the moment there is a meeting of
minds upon the thing which is the object of the contract and upon the price. From that
moment, the parties may reciprocally demand performance, subject to the provisions of the
law governing the form of contracts." Thus, the elements of a contract of sale are consent,
object, and price in money or its equivalent. It bears stressing that the absence of any of these
essential elements negates the existence of a perfected contract of sale. Sale is a consensual
contract and he who alleges it must show its existence by competent proof.

In an attempt to resurrect the lapsed option, private respondent gave P300,000.00 to


petitioners (thru Alice A. Dizon) on the erroneous presumption that the said amount
tendered would constitute a perfected contract of sale pursuant to the contract of lease with
option to buy. There was no valid consent by the petitioners (as co-owners of the leased
premises) on the supposed sale entered into by Alice A. Dizon, as petitioners' alleged agent,
and private respondent. The basis for agency is representation and a person dealing with an
agent is put upon inquiry and must discover upon his peril the authority of the agent. As
provided in Article 1868 of the New Civil Code, there was no showing that petitioners
consented to the act of Alice A. Dizon nor authorized her to act on their behalf with regard to
her transaction with private respondent. The most prudent thing private respondent should
have done was to ascertain the extent of the authority of Alice A. Dizon. Being negligent in
this regard, private respondent cannot seek relief on the basis of a supposed agency.

You might also like