10 Theis Vs CA
10 Theis Vs CA
10 Theis Vs CA
HONORABLE COURT OF
APPEALS, HONORABLE ELEUTERIO GUERRERO, ACTING PRESIDING JUDGE, BRANCH XVIII,
REGIONAL TRIAL COURT, TAGAYTAY CITY, CALSONS DEVELOPMENT CORPORATION,
respondents. (G.R. No. 126013. February 12, 1997)
Facts of the Case Private respondent Calsons Development Corporation is the owner of three (3) adjacent
parcels of land in Tagaytay City (parcel 1, 2, and 3), and constructed a two-storey house
on parcel no. 3. However, in a survey conducted, the lot where the two-storey house
stands was mistakenly indicated to be covered by parcel 1 instead, while the two idle
lands were mistaken to be on parcel 4 – a lot private respondent did not own. Unaware
of the mistake, and believing that they owned the lot, they sold said parcel no. 4 to
petitioners. Petitioners did not immediately occupy and take possession of the two (2)
idle parcels of land, and instead went to Germany. Upon their return, they discovered
that parcel no. 4 was owned by another person, and that the lots actually sold to them
were parcel nos. 2 and 3. Petitioners insisted that they wanted parcel no. 4. However,
private respondent could not sell them the land as they did not own it. Private
respondent offered to them parcel nos. 1 and 2. However, petitioners adamantly
rejected the good faith offer, and insisted on taking parcel no. 3, where the two-storey
house stands, in addition to parcel no. 2. The refusal of petitioners prompted private
respondent to make another offer - the return of an amount double the price paid by
petitioners. Petitioners still refused and stubbornly insisted in their stand. Private
respondent was then compelled to file an action for annulment of deed of sale and
reconveyance of the properties in the Regional Trial Court.
Argument & The trial court rendered judgment in favor of private respondent. The trial court
Ruling (TC) annulled said contract of sale after finding that there was indeed a mistake in the
identification of the parcels of land intended to be the subject matter of said sale, and
thus voidable.
Argument & The Petitioners appealed to the Court of Appeals, who affirmed the decision of the Trial
Ruling (CA) Court.
Issue Whether or not the CA erred in affirming the decision of the Trial Court, to annul the
deed of sale between Petitioner and Respondent
SC Ruling The petition is hereby DISMISSED and the decision of the Court of Appeals is AFFIRMED.
Costs against the petitioner.
Ratio Decidendi In the case at bar, the private respondent obviously committed an honest mistake in
selling parcel no. 4. As correctly noted by the Court of Appeals, it is quite impossible for
said private respondent to sell the lot in question as they do not own 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. Since there was a substantial mistake of fact, the deed of sale can be
annulled.