Title
Guison vs. Heirs of Terry
Case
G.R. No. 191914
Decision Date
Aug 9, 2017
A 1995 land sale was revoked in 1996 due to lack of consideration, but a 2000 partition agreement allocated 3,000 sqm to the buyer. The Supreme Court voided the agreements for lack of price certainty, upheld third-party buyers' rights, and ordered repayment to prevent unjust enrichment.
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Case Summary (G.R. No. 191914)

Factual Antecedents

On March 14, 1995, Angeles Vargas, the father of the petitioner, executed a Deed of Absolute Sale to LoreAo Terry for 1.3894 hectares of land. The transaction stipulated a payment of P5,557.60. Subsequently, from September to December 1995, Terry sold parts of the same lot to third parties. On January 22, 1996, Vargas and Terry executed a Revocation Agreement, clarifying their intent to only sell a 3,000-square-meter portion of the land, thus revoking the previous sale for 1.0894 hectares. Vargas passed away on June 10, 1998, without finalizing the specific location of the demised portion.

Subsequent Agreements

On May 3, 2000, the Heirs of Vargas and Terry entered into a Partition Agreement, delineating the 3,000-square-meter area assigned to Terry. This agreement further confirmed the division of the property, indicating that the 3,000-square-meter allocation included areas Terry sold to others before the revocation. Afterward, Terry engaged in further sales to various individuals, significantly diminishing his property ownership.

Legal Proceedings and Initial Ruling

On November 11, 2006, Guison filed a complaint against Terry and the purchasers of the land, seeking the annulment of various agreements premised on allegations of lack of consideration. The trial court ruled in favor of Guison, declaring the Deed of Absolute Sale and other agreements invalid, asserting the absence of monetary consideration and a meeting of the minds between the parties.

Court of Appeals Ruling

The Court of Appeals (CA) reversed the RTC's decision on March 19, 2009, sustaining the validity of the Revocation Agreement while deeming the original sale null due to lack of consideration. The CA stated that Guison's claims were barred by laches, citing her inaction for over six years as detrimental to the case, thereby supporting the rights of third-party purchasers who acted in good faith.

Issues Presented

The Supreme Court addressed the following issues: 1) whether the CA erred in failing to annul the Revocation and Partition Agreements; and 2) whether Guison's claims were barred by estoppel and laches.

Supreme Court Ruling

The Supreme Court partially granted Guison's petition, reversing the CA's affirmation of Terry's right to the property. The Court held that both the Revocation and Partition Agreements were void due to the absence of a clear agr

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