DE LOS REYES v.

CA Reyes were constructing a 2-storey building on a

G.R. No. 129103 | Sept 3, 1999 | Gonzaga-Reyes, J | Review portion of his land, Daluyong Gabriel, through his
lawyer, sent a letter on Aug 30, 1989 to the De los
Petitioners: Spouse CLAUDIO and LYDIA DELOS REYES Reyes couple demanding that they cease and desist
Respondents: CA and DALUYONG GABRIEL (substituted by from continuing, asserting that the construction was
his heirs, namely: MARIA LUISA G. ESTEBAN, MARIA RITA unauthorized and that their occupancy of the subject
G. BARTOLOME & RENATO GABRIEL) portion was not covered by any lease agreement.

RELEVANT FACTS 7. On Sept 20, 1989, sps. De los Reyes thru counsel sent
their letter reply that they are the innocent party who
1. Daluyong Gabriel inherited a 5,010 sqm parcel of land entered into the lease agreement and subsequent sale
in Davao del Norte. Because Daluyong was then in good faith and upon the assurance made by the
residing in Mandaluyong, his sister Maria Rita Gabriel former administratrix, Maria Rita G. Rey, her nephew
de Rey acted as administratrix and took charge of Tony Rey, Mrs. Fe S. Gabriel and Mr. Daluyong Gabriel
collecting the rentals for those leased portions. himself that Renato Gabriel is the new administrator
authorized to enter into such agreements involving
2. One of these lessees is LYDIA DE LOS REYES, who by the subject property.
virtue of a Contract of Lease executed on June 21,
1985 between Maria Rita G. de Rey as lessor and Lydia 8. Dissatisfied, Daluyong commenced an action on
de los Reyes as lessee, leased a portion of the land for November 14, 1989 against sps. De los Reyes for the
a term of one year beginning June 15, 1985 at the recovery of the subject portion of land. In his
rental rate of P200.00 per month. complaint Daluyong maintained that his son Renato
was never given the authority to lease nor to sell any
3. Sometime in 1985 Daluyong Gabriel sent his son portion of his land as his instruction to him (Renato)
Renato Gabriel to Tagum reportedly with instructions was merely to collect rentals.
to take over from Maria Rita G. de Rey as
administrator of the said parcel of land. Upon 9. Spouses delos Reyes countered in their own complaint
agreement of the parties, the June 21, 1985 Contract for specific performance, that the sale to them of the
of Lease covering the 176 sqm portion of land was subject portion of land by Renato Gabriel was with the
novated and replaced by a Contract of Lease executed consent and knowledge of Daluyong, his wife Fe and
on September 26, 1985 by and between RENATO their other children, and that the defendants be
GABRIEL as Lessor and Lydia de los Reyes as Lessee. ordered to execute the necessary deed of conveyance
The term of the lease was changed to six (6) years; for the 300 sqm portion they bought from Renato.
receipt of advance total rental payment of P14,400.00
was acknowledged by Lessor Renato Gabriel. 10. The RTC found in favor of the sps. Delos Reyes and
ordered the conveyance of the 300sqm parcel of land
4. Sometime in Nov 1987, Lydia de los Reyes verbally in favor of the sps. delos Reyes.
agreed to buy 300 sqm of Daluyong Gabriel’s
registered property, at P300/sqm or for a total amt 11. On appeal, the CA reversed and set aside the decision
of P90,000. Receipt of the payment of the purchase of the Regional Trial Court and rendered a new one
price made in several installments by Lydia de los ORDERING appellee spouses Claudio and Lydia delos
Reyes was acknowledged by Renato Gabriel as Reyes to immediately vacate the 300 sqm portion of
evidenced by official receipts issued and signed by that land they were presently occupying and to turn
him, all bearing the letter head Gabriel Building. No over possession thereof to the appellants.
deed of sale was executed covering the transaction.
ISSUE
5. Lydia de los Reyes proceeded with the construction of Was the verbal agreement which petitioners entered into
a 2-storey commercial bldg on the said 300 sqm lot with Renato Gabriel in 1987 involving the sale of the 300
after obtaining a building permit. sqm portion of land registered in the name of Renato’s
father Daluyong Gabriel a valid and enforceable contract
6. Acting on the information given by his daughter Maria of sale of real property?
Luisa Gabriel Esteban upon the latter’s return from a
trip to Tagum that spouses Claudio and Lydia de los NO. NOT VALID.
 RATIO the oral contract of sale lacks an essential requisite for its
validity prescribed under Article 1318 and is therefore null
The CA's Ratio
and void ab initio.
- The Court of Appeals ruled that the contract of sale
Moreover, petitioners contention that after the death
cannot be upheld, mainly because Renato Gabriel, as
of Daluyong Gabriel, he (Renato) became the owner and
vendor, did not have the legal capacity to enter and
acquired title thereto by way of hereditary succession
to give consent to the agreement, he, being neither
which title passed by operation of law to petitioners
the authorized agent (of Daluyong Gabriel) nor the
pursuant to Article 1434 of the Civil Code is not tenable,
owner of the property subject of the sale.
since the entire property was donated by Daluyong Gabriel
- 3 theories were advanced to prove the validity of the
to his daughter Maria Rita G. Bartolome and the property
sale of the portion in question: (1) Renato acted as the
is now in her name. When Daluyong Gabriel died on
duly authorized representative or agent of Daluyong;
September 14, 1995, he was no longer the owner of the
(2) portion already given to Renato as his share; (3)
subject property. Renato Gabriel never acquired
portion was part of Renato’s inheritance from the
ownership or title over any portion of said property as one
estate of his deceased mother. These reasons cannot
of the heirs of Daluyong Gabriel.
go together, or even complement each other, to
establish the regularity of the sale made by Renato. However, respondent Court of Appeals failed to
- It could not be possible for Renato to have acted in consider the undisputed fact pointed out by the trial court
three different capacities - as agent, owner, and heir - that petitioners had already performed their obligation
when he dealt with appellees, as the legal under subject oral contract of sale, i.e. completing their
consequences for each situation would be different. payment of P90,000 representing the purchase price of
- Appellees failed to explain what actually convinced the 300 square meter portion of land. Hence, for the sake
them to buy the land from Renato. So, no proper basis of justice and equity, and in consonance with the salutary
can be found to uphold the alleged sale made by principle of non-enrichment at another’s expense, private
Renato as it cannot be determined with certainty in respondent Renato Gabriel, should be ordered to refund
what capacity Renato acted. to petitioners the amount of P90,000.00 which they have
- Even if inherited, still a co-owner with his two sisters paid to and receipt of which was duly acknowledged by
- Besides, the entire lot covered was subsequently him.
donated by Daluyong Gabriel to his daughter Marie
However, petitioners claim for the refund to them of
Rita G. Bartolome.
P1,000,000.00 representing the alleged value and cost of
The SC’s Ruling the two-storey commercial building they constructed on
subject portion of land cannot be favorably considered as
The trial court and the Court of Appeals are not at
no sufficient evidence was adduced to prove and establish
variance in their factual findings that sometime in 1988,
the same.
an oral contract of sale was entered into by Renato Gabriel
with sps. De los Reyes involving a 300 sqm portion of a RULING
5,010 sqm parcel of land in Tagum, Davao del Norte, which
property was owned and registered in the name of CA Affirmed. Oral contract of sale entered into by Renato
Daluyong Gabriel, father of Renato. Gabriel of portion of the 5,010 square meter parcel of land
registered in the name of Daluyong Gabriel in favor of
We agree with the conclusion of the Court of
petitioners, null and void. Renato Gabriel to refund to
Appeals that Renato Gabriel was neither the owner of the
petitioners the amount of P90,000.00 which was given in
subject property nor a duly designated agent of the
payment for subject land.
registered owner (Daluyong Gabriel) authorized to sell
subject property in his behalf, and there was also no
sufficient evidence adduced to show that Daluyong Gabriel
subsequently ratified Renato’s act.
In this connection it must be pointed out that
pursuant to Article 1874 of the Civil Code, when the sale
of a piece of land or any interest therein is through an
agent, the authority of the latter shall be in writing;
otherwise the sale shall be void. In other words, for want
of capacity (to give consent) on the part of Renato Gabriel,