Facts:

• The case "Bacala v. Heirs of Poliño" involves a dispute over the validity of a Deed of Sale and an Agreement concerning land in Cocornon, Lupon, Davao Oriental.
• Petitioner Dioscoro Polio Bacala, acting as the substitute judicial guardian for the mentally incapacitated Aquilino O. Polio, challenged the legitimacy of these documents.
• Initially, Aproniana Polio Balisalisa, the judicial guardian of Aquilino and Ducepino O. Polio, filed a complaint against Juan Polio and Corazon Rom.
• The land, originally owned by Anecito and Clara Polio, was allegedly sold to Juan for P15,000.00, a price claimed to be grossly inadequate.
• The Agreement included provisions for Anecito to enjoy the usufruct of the property during his lifetime and for Juan to provide financial support to Aquilino and Ducepino after Anecito's death.
• The Regional Trial Court (RTC) declared the Deed of Sale and Agreement null and void due to lack of consideration and gross inadequacy of the purchase price.
• The Court of Appeals (CA) reversed the RTC's decision, upholding the validity of the documents.
• The case was then elevated to the Supreme Court for review.

Issue:

• (Unlock)

Ruling:

• The Supreme Court affirmed the Court of Appeals' ruling, validating the Deed of Sale and the Agreement.
• The Court held that the gross inadequacy of the purchase price did not invalidate the contract.
• The Deed of Sale and the Agreement were dee...(Unlock)

Ratio:

• The Supreme Court emphasized that a contract is presumed to be supported by an existing and lawful cause or consideration, which can only be overturned by a preponderance of evidence.
• The petitioner failed to provide sufficient evidence to prove that the Deed of Sale was without consideration or that the transaction was simulated.
• Notarized documents are prima facie evidence of the facts stated therein and require clear and convincing proof to be overturned.
• The Deed of Sale explicitly...continue reading