Estate of Valeriano C. Bueno v. Estate of Atty. Eduardo M. Peralta, Sr.

Summary

This case involves competing estates disputing ownership of Manila real property based on a 1960 oral agreement. Businessman Valeriano Bueno Sr. promised to transfer property to lawyer Eduardo Peralta Sr. in exchange for legal services until retirement. Atty. Peralta and family occupied the property from 1962, made improvements, and paid taxes. After both principals died, Bueno's heirs refused to execute proper conveyance. The Supreme Court affirmed the Court of Appeals ruling that the oral contract was ratified through the parties' conduct and performance, removing it from the Statute of Frauds' coverage. The Court emphasized that both parties benefited from the arrangement for decades, with Atty. Peralta providing legal services and Bueno allowing property occupation. The decision prevents use of the Statute of Frauds as an instrument of fraud where parties have already performed their obligations, upholding principles of unjust enrichment and good faith in contractual relations.