Civil Law,  Legally Yours

Salazar v. Court of Appeals

Salazar v. Court of Appeals

G.R. No. 118203; July 5, 1996

FACTS:

Salazar met with Borres at a restaurant in Makati. They negotiated a sale regarding the property of Salazar. In the said meeting, the parties agreed that Salazar will lend the title of his property to Borres so that the latter could secure a loan to be used as payment for the piece of land. Borres on the other hand executed a warranty that the title of the land will not pass unto her until the full payment of the purchase price.

On the second meeting of the parties, Salazar refused to sign the Deed of Absolute Sale prepared by Borres. The former stated that he changed his mind about lending the title to Borres and will only do so if the latter already pays the full purchase price.

On their third meeting, when Salazar was in the airport because he was going to the US, he reluctantly signed the Deed of Absolute Sale. However, the title was still in possession of his agent which was ordered not to give Borres the title until payment of the purchase price.

Prior to the payment of the price, Salazar called his agent from US to cancel the sale. Now, Borres filed an action for specific performance to compel Salazar to give the title upon the payment of the price.

ISSUE:

Whether or not Salazar can be compelled to sell his property to Borres

HELD:

No. The real intention of the parties was that of a contract to sell and not of a contract of sale. This intention was evidenced by the warranty and oral evidence adduced in the trial.

Further, it was evident that Salazar, in continuously refusing to give the title to Borres, shows his real intent not to transfer ownership of the said property until the full payment of the purchase price.

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