SPOUSES TONGSON vs EMERGENCY PAWNSHOP BULA, INC.

GR 167874
Facts:
Napala purchased from spouses Tongson their 364 square meter parcel of land
situated in Davao. The respondent prepared an Absolute Deed of Sale indicating the
consideration as P 400,000 and executed another Memorandum of Agreement in
conformity with the Deed of Sale. Upon signing, Napala paid two hundred thousand
pesos in cash to spouses and issued postdated PNB check to represent the balance.
However the check was dishonored for insufficient funds. Despite demand, Napala
failed to pay or return the purchase land. The petitioners filed for the annulment of the
contract.
The trial court ordered the annulment of the contract. Furthermore, Napalas
action in giving the check constituted fraud that induced the spouses to enter in the sale.
Issue:
Whether or Not Napala employed fraud which induces the spouses to enter in the
sale.
Held:
The issuance of PNB check and fraudulently representation made by Napala
could not be considered as determining cause for the sale of the subject parcel of land.
A valid contract requires occurrence of three elements. In the present, there is no
dispute as regards the presence of two requisites; namely, (a) determinate subject
matter, and (b) price certain in money. As regards the requisite which is the consent of
the parties, it is clearly shown for the record that the spouses agreed to sell the land to
Napala who offered to pay the price. The fraud was not employed during the negotiation
and perfection stages of the sale, but existed in the consummation when the parties are
in the process of their respective obligations.