Spouses Domingo v. Pierre Astorga

Summary

This case involves spouses Paguyo's attempt to rescind contracts for the sale of their building to Astorga/St. Andrew Realty, claiming fraud and gross inadequacy of the P600,000 purchase price. The building was sold to raise funds for acquiring the underlying land from the Armas family. After respondents took possession and exercised ownership rights for years, petitioners sought rescission. The Supreme Court upheld the validity of the contracts, finding no fraud, mistake, or undue influence. The Court emphasized that gross inadequacy of price alone does not invalidate contracts, and courts cannot protect parties from unwise business decisions absent legal violations. The decision reinforces the principle that validly executed contracts must be honored, and parties cannot later disown arrangements when terms prove unfavorable to their expectations.