Title
Mercado vs. Liwanag
Case
G.R. No. L-14429
Decision Date
Jun 30, 1962
The annulment of a deed of sale was denied on grounds of fraud, with the court upholding the sale's validity under Article 493 of the Civil Code.
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Case Digest (G.R. No. L-14429)

Facts:

  • Ramon Mercado and Basilia Mercado, along with her husband Francisco Ronquillo, are the plaintiffs and appellants.
  • Pio D. Liwanag is the defendant and appellee.
  • The case stems from a decision by the Court of First Instance of Rizal (Quezon City) on June 30, 1962.
  • The plaintiffs aimed to annul a Deed of Sale dated July 14, 1956, concerning a parcel of land in Kangkong, Quezon City.
  • The land, covered by Transfer Certificate of Title No. 20805, measures 4,392 square meters and is co-owned by Ramon and Basilia Mercado.
  • The plaintiffs claimed the sale was executed without Basilia Mercado's knowledge and consent.
  • The Deed of Sale indicated Ramon sold half of the property to Pio D. Liwanag for P15,372.00 at P7.00 per square meter.
  • It was revealed that 391 square meters of the property had been expropriated by the National Power Corporation before the sale, a fact unknown to Liwanag until the registration of the Deed.
  • A new title (TCT No. 32757) was issued in the names of Pio D. Liwanag and Basilia Mercado as co-owners pro-indiviso.
  • The plaintiffs argued the sale was invalid under Article 493 of the Civil Code, which addresses co-owners' rights regarding property alienation.
  • The trial court dismissed the complaint, ruling the sale valid under the Civil Code.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court affirmed the trial court's decision, declaring the Deed of Sale valid under Article 493 of the Civil Code.
  • The Court determined that any error regarding the consideration of fraud was not prejudici...(Unlock)

Ratio:

  • The Supreme Court explained that under Article 493 of the Civil Code, each co-owner has the right to dispose of their undivided share of the property.
  • The Court clarified that while a co-owner cannot sell a specific portion of the property by metes and bounds, Ramon Mercado's sale of a divided half was valid as it represented an undivided share.
  • The new title issued post-sale confirmed that Liwanag acquired an undivided half-share, which Mercado was entitled to sell.
  • The Court emphasized that the title...continue reading

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