Dear Atty. Gab,

Musta Atty! I’m writing to you today because I’m in a really confusing situation and I hope you can shed some light on my legal rights. I recently signed a Deed of Sale for a small piece of land I own in the province to a person named Ricardo. He promised to pay me the agreed amount within a week after signing, but it’s been almost two months and I haven’t received a single centavo. I trusted him because he seemed like a good person and we even shook hands on the deal. Now, he’s starting to act like he owns the land already, even though he hasn’t paid me. My neighbor told me that since I signed the Deed of Sale, it’s already final. But I feel cheated because I haven’t been paid anything! Is the Deed of Sale really valid even if I haven’t received any payment? Can I still revoke the sale and get my land back? I’m really worried about losing my property without getting compensated. Any advice you can give would be greatly appreciated. Thank you and more power!

Sincerely,
Elena Rodriguez

Dear Elena,

Musta Elena! Thank you for reaching out and sharing your concerns. It sounds like you’re in a stressful situation, and it’s understandable to feel confused about your rights. Based on your letter, your primary concern revolves around the validity of the Deed of Sale you signed, especially since you haven’t received payment. Rest assured, Philippine law provides certain protections in cases like yours. Let’s explore the legal principles at play to clarify your options.

Valid Contracts Need to Be Real: Understanding Consideration

In the Philippines, for a contract like a Deed of Sale to be legally binding, several essential elements must be present. One of the most critical elements is consideration. Consideration, in simple terms, is the price or the cause that motivates parties to enter into a contract. In a sale, the consideration for the seller is the price they receive, and for the buyer, it’s the property itself. Without valid consideration, a contract can be deemed simulated or fictitious, meaning it lacks the genuine intent to create legal obligations. Philippine courts have consistently held that contracts without consideration are void.

The Supreme Court has emphasized the importance of real consideration in contracts. In a relevant ruling, the court stated:

“Petitioner in the main contends that the Deed of Sale with Assignment of Mortgage executed by the parties is valid, thus making him the owner of the property. However, the Regional Trial Court and respondent Court of Appeals ruled against him and held that the Deed was simulated and was made without consideration.”

This highlights that even if a document like a Deed of Sale exists, its validity can be challenged if it is proven that it was executed without actual consideration. The court in the case further elaborated on how factual findings regarding the absence of consideration are treated:

“The errors raised by petitioner are clearly factual in nature. There is no justification to depart from the well-settled principle laid down in a long line of cases that the findings of fact of the lower courts, the trial court and the Court of Appeals, are, as a general rule, binding and conclusive upon this Court. There is likewise no basis to review the factual conclusions of the Regional Trial Court, particularly since respondent Court of Appeals adopted them as its own and found them to be in order.”

This means that if lower courts have already determined, based on evidence, that no payment (consideration) was made, the higher courts are likely to uphold these factual findings. In your situation, Elena, the fact that Ricardo has not paid you despite the lapse of considerable time is a significant point. The court also considered various pieces of evidence to determine if consideration was truly absent. For instance, in the case we are referencing, the court noted:

“As regards the formal offer of documentary exhibits, petitioner argues that since the testimony of private respondent’s witness was not seasonably offered, the documentary exhibits identified by the witness were likewise not properly offered. Petitioner’s contention, made through indirection, is without merit. This Court is of the same conclusion as respondent Court of Appeals, that the documentary exhibits were formally offered and properly admitted by the trial court.”

This underscores the importance of presenting evidence to support your claim that no consideration was given. In your case, this would involve demonstrating that despite the Deed of Sale, no actual payment from Ricardo was ever received. The absence of receipts, bank records, or witnesses to a payment can strengthen your position. Furthermore, the court in the decision we are examining also considered inconsistencies in the petitioner’s claims about payment, which weakened his argument. Therefore, consistency and clear evidence in your favor are crucial.

Practical Advice for Your Situation

• Document Everything: Keep records of all communications with Ricardo, including dates and details of your conversations regarding the payment. Save any messages, emails, or letters exchanged.
• Demand Payment Formally: Send a formal written demand letter to Ricardo, preferably through a lawyer, demanding immediate payment of the agreed price within a reasonable timeframe. This establishes a clear record of your attempt to resolve the issue amicably.
• Consider Rescission: If Ricardo fails to pay after your formal demand, you have grounds to consider rescinding or revoking the Deed of Sale. Rescission is a legal remedy that essentially cancels the contract and restores both parties to their original positions before the contract was signed.
• File a Case in Court: If Ricardo refuses to cooperate or acknowledge your right to rescind, you may need to file a case in court to formally declare the Deed of Sale void due to lack of consideration. This is usually an action for Declaration of Nullity of Contract.
• Seek Legal Counsel Immediately: It is highly recommended that you consult with a lawyer as soon as possible. A lawyer specializing in property law can assess your specific situation, review the Deed of Sale, gather evidence, and advise you on the best course of action. They can also help you draft the demand letter and, if necessary, represent you in court.
• Act Promptly: Do not delay in taking action. The longer you wait, the more complicated the situation might become. Prompt action can protect your rights and prevent further complications.

Elena, remember that Philippine law aims to ensure fairness and justice in contractual agreements. The principle of consideration is fundamental to contract validity. While this explanation is based on established jurisprudence and aims to provide clarity, it is not a substitute for personalized legal advice. Each case is unique, and consulting with a lawyer will provide you with tailored guidance based on the specifics of your situation.

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.