Cornelia Baladad (Represented By Heinrich M. Angeles v. Sergio A. Rublico

Summary

This case involves a property ownership dispute over two parcels of land originally registered under Julian Angeles. After Julian's death in 1969, his widow Corazon Rublico executed a valid Extrajudicial Settlement with Absolute Sale on her deathbed in 1985, selling the properties to Cornelia Baladad. However, Corazon's son Sergio later claimed the properties through an Affidavit of Adjudication by Sole Heir and sold them to Spouses Yupano in 1988. The Supreme Court upheld the validity of Corazon's 1985 sale to Cornelia, finding that despite her physical weakness, she had the mental capacity to contract. The Court applied the 'nemo dat quod non habet' principle, ruling that Sergio could not sell property he never owned. The Yupanos were deemed not to be good faith purchasers due to their actual knowledge of the prior sale, as evidenced by the continuous rent payments to Cornelia's representatives and their proximity to the properties.