Title
Azarraga vs. Gay
Case
G.R. No. 29449
Decision Date
Dec 29, 1928
Plaintiff sold land to defendant for lump sum; defendant failed to pay installments, alleging misrepresentation. Court ruled no fraud, upheld lump sum sale, ordered payment of unpaid amounts with interest, dismissed cross-complaint.
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Case Summary (G.R. No. 29449)

Contractual Agreement and Payment Terms

  • The plaintiff sold two parcels of land to the defendant for a total of P47,000, payable in installments.
  • Payment terms included:
    • P5,000 upon signing the contract.
    • P20,000 upon delivery of the Torrens title for the first parcel.
    • P10,000 upon delivery of the Torrens title for the second parcel.
    • P12,000 one year after the delivery of the Torrens title for the second parcel.
  • The defendant made the initial payment of P5,000 and subsequently paid P20,000 after receiving the title for the first parcel.
  • The defendant failed to pay the agreed amounts for the second parcel, totaling P22,000 claimed by the plaintiff.

Defendant's Allegations and Claims

  • The defendant acknowledged the purchase but claimed misrepresentation regarding the area of the second parcel, asserting it was represented as 98 hectares instead of the actual 60 hectares.
  • The defendant sought a price reduction to P38,000 based on the alleged misrepresentation and claimed to have paid an additional P4,000.
  • The defendant also filed a cross-complaint for P15,000 in damages due to the plaintiff's alleged deceit.

Court's Findings and Rulings

  • The trial court found no evidence of fraud or misrepresentation by the plaintiff, concluding that both parties did not consider the area of the land significant in their agreement.
  • The court ordered the defendant to pay the plaintiff P19,300 with legal interest, dismissing the defendant's cross-complaint without costs.

Appellate Review and Legal Principles

  • The appellate court reviewed the trial court's findings, particularly regarding the alleged deceit and the defendant's understanding of the property area.
  • The court noted that the defendant had the opportunity to investigate the property and had received documents indicating the actual area before the contract was executed.
  • The court cited legal precedents establishing that a purchaser cannot claim misrepresentation if they had the means to verify the vendor's statements.

Application of Civil Code Article 1471

  • The court applied Article 1471 of the Civil Code, which states that in a sale for a lump sum, there is no adjustment of price based on area discrepancies unless the contract specifies otherwise.
  • The court concluded that since the sale was fo...continue reading

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