understanding that the actual conveyance of the said portion to plaintiffs would be
made only after the lapse of the five-year period during which, under the Public Land
Act, the homestead owner was prohibited from transferring his rights. The agreement
is clearly illegal and void ab initio; it is intended to circumvent and violate the law.
As parties to a void contract, the plaintiffs have no rights which they can
enforce and the court cannot lend itself to its enforcement. Plaintiffs can
neither invoke the doctrine of implied trust based on an illegal contract. The
issue of prescription or laches becomes irrelevant in a case such as this, where
plaintiffs clearly have no cause of action.
WHEREFORE, the petition is hereby DENIED.
Notes:
Implied Trust: one which comes into being by operation of law (Art. 1441); may be:
1. Resulting Trust- one in which the intention to create a trust is implied or
presumed in law;
2. Constructive Trust one imposed by law irrespective of, and even
contrary to, any such intention for the purpose of promoting justice,
frustrating fraud, or preventing unjust enrichment.
Doctrine of implied trust - [The doctrine] enunciated in Art. 1456 of the Civ. Code
[which provides that] if property is acquired through mistake or fraud, the person
obtaining it is, by force of law, considered a trustee of an implied trust for the benefit
of the person from whom the property comes. [Armamento v. Guerrero, GR L-34228
Feb. 21, 1980].
Article 1456 (Constructive Trust): If the property is acquired through mistake or fraud,
the person obtaining it is, by force of law, considered a trustee of an implied trust for
the benefit of the person from whom the property comes.