Rebecca Fulido vs. Gino Grilli

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1409 – Rebecca Fulido vs.

Gino Grilli
Grilli in this case is a foreigner and a sweetheart of Ms. Fullido. Since he has money, he
financially assisted Ms. Fullido in procuring a lot from her parents which was registered in her
name. On the said property, they constructed a house, which was funded by Mr. Grilli. Upon
completion, they maintained a common-law relationship and lived there whenever Grilli was on
vacation in the Philippines. Sometime in 1998, Grilli and Fullido executed a contract of lease.
This lease defines their respective rights over the house and lot. The lease of contract stipulated,
among others, that Grilli as the lessee, would rent the lot, registered in the name of Fullido, for a
period of fifty (50) years, to be automatically renewed for another fifty (50) years upon its
expiration; and that Fullido as the lessor, was prohibited from selling, donating, or encumbering
the said lot without the written consent of Mr. Grilli. Their harmonious relationship turned sour
after 16 years of living together. Both of them charged each other with infidelity. And because of
this, they could not agree who should leave in the common property. Mr. Grilli sent formal
letters to Fullido demanding that she vacate the property, but this was ignored by the later. Mr.
Grilli then filed a complaint for unlawful detainer with prayer for the issuance of preliminary
injunction against Fullido. Ms. Fullido argues that she could not be ejected from her own lot
based on the contract of lease and from the MOA because those documents were null and void.
Grilli, on the other hand, contends that Ms. Fullido could not question the validity of the said
contracts in the present ejectment suit unless she instituted a separate action for annulment of
contracts.
The court is in view that Grilli had the exclusive right to use and possess the house and lot by
virtue of the contract of lease executed by the parties and of the MOA.
Issues:
1. Whether or not the contract is null and void?
2. May a null and void contract be a basis of an ejectment order?

Held:
1. Yes, the contract is null and void. As it contrary to the Constitution as the contract is for a
period of fifty (50) years, and, upon termination, was automatically renewable for another
fifty (50) years.
2. No. Since the contract is void then it cannot be a be a basis of an ejectment order. Article
1409 of the New Civil Code explicitly states that void contracts also cannot be ratified;
neither can the right to set up the defense of illegality be waived. Accordingly, there is no
need for an action to set aside a void or inexistent contract.
One characteristics of a void contract is that generally it produces no effect. It is one which
has no force and effect from the very beginning, as if it had never been entered into; it
produces no effect whatsoever either against or in favor of anyone. Clearly, contracts may be
declared void even in a summary action for unlawful detainer because, precisely, void
contracts do not produce legal effect and cannot be the source of any rights. To emphasize,
void contracts may not be invoked as a valid action or defense in any court proceeding,
including an ejectment suit.

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