It is a well-entrenched rule that where the deed of sale states that the purchase price has been paid but in fact has never been paid, the deed of sale is null and void ab initio for lack of consideration.

It is a well-entrenched rule that where the deed of sale states that the purchase price has been paid but in fact has never been paid, the deed of sale is null and void ab initio for lack of consideration. Moreover, Article 1471 of the Civil Code, provides that “if the price is simulated, the sale is void,” which applies to the instant case, since the price purportedly paid as indicated in the contract of sale was simulated for no payment was actually made.[8]

          Since it was well established that the Deed of Sale is simulated and, therefore void, petitioners’ claim that respondent’s cause of action is one for annulment of contract, which already prescribed, is unavailing, because only voidable contracts may be annulled. On the other hand, respondent’s defense for the declaration of the inexistence  of the contract does not prescribe.[9]

 http://sc.judiciary.gov.ph/jurisprudence/2011/february2011/165851.htm

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About Erineus

Born on December 28, 1965, Surallah, South Cotabato, Southern Mindanao, Philippines.
This entry was posted in Deed of Sale, Land, Obligations and Contracts, Sales and tagged . Bookmark the permalink.

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