Alcantara vs. Nido Case Digest Legal Forms

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SPOUSES JOSELINA ALCANTARA VS. BRIGIDA L.

NIDO

FACTS. Petitioners offered to purchase from respondent a portion of a lot owned by her daughter,
Revelen.

Petitioners paid downpayment and the balance was payable on installment. Petitioners constructed their
houses, with respondent's consent, petitioners occupied an additional 150 square meters of the lot.
Petitioners had already paid P17,500 before petitioners defaulted on their installment payments.

Respondent, acting as administrator and attorney-in-fact of Revelen, filed a complaint for recovery of
possession with damages and prayer for preliminary injunction against petitioners with the RTC.

The RTC's Ruling

The RTC ruled that since respondent's verbal authority to sell the land was not in writing, the sale was
void, and that rescission is the proper remedy.

The Appellate Court's Ruling

The appellate court reversed the RTC decision and dismissed the civil case, explaining that this is an
unlawful detainer case, and is therefore under the jurisdiction of the Municipal Trial Court. The appellate
court also held that respondent, as Revelen's agent, did not have a written authority to enter into such
contract of sale; hence, the contract entered into between petitioners and respondent is void. A void
contract creates no rights or obligations or any juridical relations. Therefore, the void contract cannot be
the subject of rescission. Aggrieved by the appellate court's Decision, petitioners elevated the case before
this Court.

ISSUE. Whether or not the appellate court gravely erred in ruling that the contract entered into by
respondent, in representation of her daughter is void.

RULING. The Court ruled that the contract is void.

Article 1874 of the Civil Code explicitly requires a written authority before an agent can sell an immovable
property. Based on a review of the records, there is absolutely no proof of respondent's written authority
to sell the lot to petitioners. In fact, during the pre-trial conference, petitioners admitted that at the time
of the negotiation for the sale of the lot, petitioners were of the belief that respondent was the owner of
lot. Petitioners only knew that Revelen was the owner of the lot during the hearing of this case.
Consequently, the sale of the lot by respondent who did not have a written authority from Revelen is void.
A void contract produces no effect either against or in favor of anyone and cannot be ratified.

A special power of attorney is also necessary to enter into any contract by which the ownership of an
immovable is transmitted or acquired for a valuable consideration. Without an authority in writing,
respondent cannot validly sell the lot to petitioners. Hence, any "sale" in favor of the petitioners is void.

Respondent did not have the written authority to enter into a contract to sell the lot. As the consent of
Revelen, the real owner of the lot, was not obtained in writing as required by law, no contract was
perfected. Consequently, petitioners failed to validly acquire the lot.
Revelen executed a General Power of Attorney constituting respondent as her attorney-in-fact and
authorizing her to enter into any and all contracts and agreements on Revelen's behalf. The General Power
of Attorney was notarized by Notary Public in California, U.S.A.

Unfortunately, the General Power of Attorney presented in the RTC cannot also be the basis of
respondent's written authority to sell the lot.

Since the General Power of Attorney was executed and acknowledged in the United States of America, it
cannot be admitted in evidence unless it is certified as such in accordance with the Rules of Court by an
officer in the foreign service of the Philippines stationed in the United States of America. Hence, this
document has no probative value.

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