Ayson-Simon v. Adamos

G.R. No. L-39378, August 28, 1984, 131 SCRA 439

FACTS:

On December 13, 1943, Nicolas Adamos and Vicente Feria, defendants-appellants herein, purchased two lots forming part of the Piedad Estate in Quezon City. The successors-in-interest of the latter filed Civil Case No. 174 in the then Court of First Instance of Quezon City for annulment of the sale and the cancellation of Transfer Certificate of Title, which had been issued to defendants-appellants by virtue of the disputed sale. On December 18, 1963, the Court rendered a Decision annulling the sale, cancelling TCT 69475, and authorizing the issuance of a new title in favor of Porciuncula’s successors-in-interest. The said judgment was affirmed by the Appellate Court and had attained finality.

In the meantime during the pendency of the above mentioned case, defendants-appellants sold to Generosa Ayson Simon the lots in question. Due to the failure of defendants appellants to comply with their commitment to have the subdivision plan of the lots approved and to deliver to deliver the titles and possession to Generosa, the latter filed suit for specific performance. As a result of the sale of the lot to said defendants appellants being null and void, there is impossibity that they can comply with their commitment to Generosa, the latter then seek the rescission of the contract plus damages.
The defendants-appellants contend that Generosa’s action had prescribed, considering that she had only four years from May 29, 1946 to rescind the transaction.

ISSUE:

Whether or not the action to rescind the obligation has prescribed.

RULING:

The Supreme Court ruled that according to Article 1191 of the Civil Code provides that an injured party may also seek rescission if the fulfillment should have become impossible. The cause of action to claim rescission arises when the fulfillment of the obligation became impossible when the court declared that the sale was null and void. The Generosa cannot be assailed on the ground that she slept on her rights.

 * Case digest by Jason Olasiman, LLB-1, Andres Bonifacio Law School, SY 2017-2018

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