Golden Apple Realty v. Sierra Grande Realty Corporation

Summary

This case involved a complex real estate transaction where Golden Apple and Rosvibon purchased the 'Roberts property' from Sierra Grande through contracts executed by Bernardino Villanueva. Sierra Grande later revoked Villanueva's authority and challenged the sales as fraudulent. The trial court initially ordered specific performance, but the Court of Appeals found multiple badges of fraud: (1) buyer corporation Rosvibon lacked legal personality when the initial contract was signed, (2) notarial irregularities suggesting documents were ante-dated to circumvent the board's revocation of authority, and (3) grossly inadequate consideration of P441,032.00 for valuable Pasay City property. The Supreme Court affirmed, emphasizing that while price inadequacy alone doesn't void contracts, it can indicate fraud when combined with other suspicious circumstances. The decision demonstrates judicial scrutiny of commercial transactions involving related parties and highlights the importance of corporate formalities and proper authorization in real estate dealings.