Title
Teran vs. Villanueva
Case
G.R. No. 34697
Decision Date
Mar 26, 1932
Plaintiff sought rescission of a land sale due to a significant area discrepancy, but the Supreme Court upheld the lump-sum contract, ruling the sale valid as the plaintiff failed to verify the land's boundaries.
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Case Summary (G.R. No. 34697)

Factual Background

On October 6, 1928, the parties executed a deed of sale wherein the defendants sold to the plaintiff a parcel of land for P4,000, specifically described as encompassing an area of 34 hectares, 52 ares, and 43 centares. Subsequently, the plaintiff discovered that the parcel contained only about 10 hectares and sought to rescind the contract on the grounds of misrepresentation regarding the land's size.

Discovery and Claims

Upon harvesting the land in 1929, the plaintiff realized that the boundaries shown to him by the defendants' agent, Rafael Villanueva, did not reflect the actual size. The plaintiff obtained a cadastral sketch showing the true dimensions of the property. He claimed damages and sought to rescind the contract, asserting that the land delivered was significantly smaller than that represented in the deed of sale.

Trial Court Findings

The trial court found no evidence of bad faith on the part of the defendants. The court noted that the land sold was inherited by the defendants and had been described with the area stated in the tax declaration given to the plaintiff. The court ruled that the plaintiff's own failure to fully investigate the property before entering into the agreement contributed to his predicament.

Legal Principles Applied

The court referenced Article 1471 of the Civil Code, which stipulates rules concerning the sale of real estate for a lump sum. It indicated that the price remains fixed regardless of whether the area is found to be more or less than stated, unless the vendor fails to deliver all within the stated boundaries. As per existing jurisprudence, when a buyer, having had the opportunity to inspect, proceeds with the purchase, he cannot later claim misrepresentation.

Case Law and Precedents

Several precedents were cited, including Azarraga v. Gay and Songco v. Sellner, which upheld that a buyer who undertakes an inspection accepts the property's condition as represented within the contract. It was concluded that the buyer assumes the risk of misstatement

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