Petitioner
Cornelio Cruz
Respondent
Pablo Reyes
Citation
G.R. No. 35859
Court
Supreme Court En Banc
Division
En Banc
Ponente
Ostrand, J.
Decided
November 16, 1932

Summary

This case involved rescission of a land sale contract where defendant Pablo Reyes sold 20 hectares to plaintiff Cornelio Cruz for P10,000 but failed to deliver possession. Reyes had only possessory title and his homestead application was disapproved by the Bureau of Lands because the property was public land occupied by other homesteaders. When Cruz attempted to take possession, he encountered violent opposition from existing occupants. The Supreme Court found Reyes acted in bad faith by selling land he knew he could not deliver, rejecting his claim that the transaction was a donation. The Court ordered full restitution of P10,000 with interest, establishing that sellers must have capacity to deliver what they promise to sell under the Civil Code.

Statutes applied

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By Intellegal Editorial Board · November 16, 1932

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