Leodegario Azarraga v. Maria Gay

Summary

This case involved a breach of contract dispute over a land sale where plaintiff Azarraga sold two parcels to defendant Gay for P47,000 in installments. Gay paid P25,000 but defaulted on the remaining P22,000, claiming misrepresentation about the second parcel's area (stated as 98 hectares, actually 60-70 hectares). The Supreme Court applied Civil Code Article 1471, ruling that in lump sum sales of real estate, when the determinate object within specified boundaries is delivered entirely, there can be no price adjustment for area discrepancies. The Court found no fraud, noting Gay had access to documents showing the actual area before contracting and failed to complain for years after the sale. The decision established important precedent on lump sum real estate sales and buyer's duty to investigate property conditions.