Buot v CA (G.R. No. 119779) Date: May 18, 2001 Ponente: De Leon, Jr.

Facts: Spouses Buot alle e! "n t#e"r $o%pla"nt t#at &n$arna$"on D"a' (!a. !e Reston sol! to t#e% t#e eastern port"on o) #er property. *#e"r M+, state! t#at t#e pur$#ase pr"$e o) -19,0.2.00 s#all /e pa"! as )ollo0s1 (1) -1,000 as earnest %oney to /e pa"! upon e2e$ut"on o) M+,3 (2) /alan$e 0"t#"n 4 %ont#s )ro% t#e !ate 5en!ees are not")"e! /y t#e 5en!or o) t#e )a$t t#at t#e 6ert. o) *"tle to t#e eastern port"on o) t#e 5en!or7s lot "s rea!y )or trans)er "n t#e na%e o) t#e 5en!ees. 8t 0as also a ree! t#at t"tle to, o0ners#"p, possess"on an! en9oy%ent o) t#e port"on sol! s#all re%a"n 0"t# t#e 5en!or unt"l t#e )ull $ons"!erat"on o) t#e sale s#all #a5e /een re$e"5e! /y #er an! a$:no0le! e! "n a !o$u%ent !uly e2e$ute! )or sa"! purpose. o *#e Buot spouses, as 5en!ees, pa"! &n$arna$"on D"a' (!a. !e Reston t#e earnest %oney o) -1,000. ;ro% ,pr"l 197< to Mar$# 1977, &n$arna$"on as:e! ,l)re!o Buot )or a!!"t"onal su%s o) %oney totall"n -2,77..00, !uly re$e"pte! as part pay%ent o) t#e su/9e$t lot. o ,s t#e lan! 0as not t"tle!, ,l)re!o Buot prote$te! #"s "nterest /y "n)or%"n t#e -ro5"n$"al ,ssessor o) 6e/u "n a letter !ate! +$to/er 2=, 197. t#at #e #a! a$>u"re! ?$erta"n r" #ts@ on sa"! par$el o) lan! an! re>ueste! t#at #"s sa"! r" #ts /e annotate!. o +n May 18, 1977, ,l)re!o Buot re$e"5e! a su/poena )ro% t#e -#"l"pp"ne 6onsta/ulary re>u"r"n #"% to appear on May 20, 1977. +n sa"! !ate, t#ey #a! a $on)rontat"on 0"t# &n$arna$"on D"a' (!a. !e Reston. o +n June 1., 1977, &n$arna$"on D"a' (!a. !e Reston )"le! a $ase /e)ore 6;8 6e/u )or t#e re "strat"on o) t"tle o) #er lan! "n$lu!"n t#e port"on sol! to t#e pla"nt"))s. Spouses Buot )urt#er alle e! t#at on ,u ust <, 1977, &n$arna$"on D"a' (!a. !e Reston %al"$"ously e2e$ute! a Dee! o) ,/solute Sale )or t#e 0#ole par$el o), 0#"$# "n$lu!e! t#e port"on alrea!y sol! to t#e%, to !e)en!antsAspouses Mar"ano Del Rosar"o an! Sotera De9an, 0#o #a! pre5"ous :no0le! e o) t#e sale to t#e%. ,lso, t#ey alle e! t#at t#e spouses Del Rosar"o, /y %eans o) )rau! 0ere a/le to se$ure a ;ree -atent *"tle to t#e ent"re property, "n$lu!"n t#e eastern port"on pre5"ously sol! to t#e%. -la"nt"))s praye! )or t#e $an$ellat"on o) t#e t"tle o) Mar"ano Del Rosar"o, t#e re$on5eyan$e o) t#e eastern port"on o) t#e property to t#e%, an! !a%a es. &n$arna$"on1 (1) Spouses Buot #a! no "ntent"on to /uy t#e property an! 0ere only "ntereste! "n !eal"n 0"t# ot#er "ntereste! /uyers3 (2) 8n )"nan$"al !"stress, s#e "n)or%e! pla"nt"))s t#at s#e $oul! no lon er 0a"t )or t#e% to e2er$"se t#e opt"on, an! o))ere! to re"%/urse t#e a%ounts 0#"$# t#ey #a5e a!5an$e!, "n$lu!"n t#e earnest %oney. -la"nt"))s re)use! re"%/urse%ent, alt#ou # t#ey 0ere not 0"ll"n to $onsu%%ate t#e sale. -la"nt"))s, t#ere)ore, #a5e no $ause o) a$t"on, an! t#e"r a$t"on "s /arre! /y la$#es. Be"rs o) &n$arna$"on1 Del Rosar"o, as 5en!ee, #as not yet pa"! t#e lan! "n )ull. Bas"$ally, t#ey 0ante! t#e ent"re property to /e a0ar!e! to t#e%. SC: Did not appeal from CA decision so CA decision already holds for them. Mar"ano Del Rosar"o1 (1) Mar"ano Del Rosar"o a5erre! t#at /e)ore sa"! %ort a e an! sale, &n$arna$"on D"a' (!a. !e Reston represente! to #"% t#at s#e 0as t#e a/solute o0ner o) t#e property an! s#o0e! #"% #er ta2 !e$larat"ons an! ta2 re$e"pts3 (2) Mar"ano Del Rosar"o !e$lare! t#at at t#e t"%e #e appl"e! )or )ree patent, #e !"! not :no0 o) any transa$t"on /et0een &n$arna$"on an! t#e Buot spouses. ,t t#e t"%e #e )"le! #"s appl"$at"on )or )ree patent, no oppos"t"on 0as )"le! /y t#e Buot spouses. Be )"rst $a%e to :no0 ,l)re!o Buot at t#e t"%e t#e latter )"le! t#e "nstant $ase a a"nst &n$arna$"on3 (=) Be also state! t#at /e)ore #e e2e$ute! t#e %ort a e $ontra$t, #e !"! not $#e$: 0#et#er &n$arna$"on 0as t#e o0ner o) t#e property %ort a e!, /ut #e %erely rel"e! on t#e representat"on o) &n$arna$"on. -r"or to t#e sale, &n$arna$"on !"! not "n)or% #"% t#at t#ere 0as a transa$t"on /et0een #er an! t#e Buot spouses. *61 D"s%"sse! t#e $o%pla"nt /ut later re$ons"!ere!. Rule! t#at Spouses Buot are a/solute o0ners o) t#e eastern port"on o) t#e property "n >uest"on.

6,1 M+, "s %erely an opt"on to pur$#ase3 as su$#, t#ere 0as no per)e$te! $ontra$t o) sale. ,lso, t#ere 0as no s#o0"n o) )rau! on t#e part o) Mar"ano !el Rosar"o.

Issue: 1. C+N Spouses Buot are ent"tle! to re$o5er t#e property "n >uest"onD C+N M+, "s a $ontra$t o) sale Held & Ratio: 1. No. M+, "s a $ontra$t *+ sell. *#us, pet"t"oners $learly #a! no r" #t to as: )or re$on5eyan$e o) t#e property on t#e roun! o) )rau! as t#ere 0as no per)e$te! $ontra$t o) sale /et0een t#e% an! t#e late &n$arna$"on D"a' (!a. !e Reston. -ursuant to N66 1188, Spouses Buot are ent"tle! to re$o5er 0#at t#ey #a! pa"! "n e2pe$tan$y t#at t#e $on!"t"on 0oul! #appen3 ot#er0"se, t#ere 0oul! /e un9ust enr"$#%ent on t#e part o) t#e late &n$arna$"on (no0 su/st"tute! /y #er #e"rs). M+, para rap# =1 ?*"tle to, o0ners#"p, possess"on an! en9oy%ent o) t#at port"on #ere"n sol!, s#all, re%a"n 0"t# t#e (&ND+R unt"l t#e )ull $ons"!erat"on o) t#e sale t#ereo) s#all #a5e /een re$e"5e! /y (&ND+R an! !uly a$:no0le! e! /y #er "n a !o$u%ent !uly e2e$ute! )or sa"! purpose.@ o ;ro% t#e )ore o"n , "t appears t#at t#e a ree%ent 0as "n t#e nature o) a $ontra$t to sell as t#e 5en!or, &n$arna$"on D"a' (!a. !e Reston, $learly reser5e! to #ersel) o0ners#"p an! possess"on o) t#e property unt"l )ull pay%ent o) t#e pur$#ase pr"$e /y t#e 5en!ees, su$# pay%ent /e"n a pos"t"5e suspens"5e $on!"t"on, t#e )a"lure o) 0#"$# "s not $ons"!ere! a /rea$#, $asual or ser"ous, /ut s"%ply an e5ent 0#"$# pre5ente! t#e o/l" at"on )ro% a$>u"r"n o/l" atory )or$e. o Be"n a $ontra$t to sell, t#ere 0as no a$tual sale unt"l )ull pay%ent 0as %a!e /y t#e 5en!ees. *#"s !oes not $#an e t#e nature o) t#e $ontra$t1 ?no )ull pay%ent 0oul! /e %a!e unt"l a $ert")"$ate o) t"tle 0as rea!y )or trans)er "n t#e"r na%es.@