Pepito Bernardo v. Hon. Court of Appeals

Summary

This case involved a dispute over the true nature of a 1960 transaction concerning 23.2922 hectares of land in Nueva Ecija. Landowner Fructuoso Torres claimed a notarized 'Deed of Sale with Assumption of Mortgage' was actually intended as a 10-year lease agreement due to his alleged illiteracy. The trial court dismissed his annulment suit, but the Court of Appeals reversed, finding merit in Torres' illiteracy defense. The Supreme Court ultimately reinstated the trial court's dismissal, holding that notarized documents enjoy presumption of regularity that cannot be overcome by mere denial. The Court found Torres had sufficient education to understand the document's nature, had executed other English contracts, and that contemporaneous acts of both parties were consistent with a sale rather than lease.