Asia Production Co. v. Hon. Ernani Cruz Paño

Summary

The Supreme Court reversed a lower court's dismissal of an action for refund of partial payments made under an oral agreement to sell a building. The Court ruled that the Statute of Frauds does not bar actions for recovery of money paid under unenforceable contracts, as distinguished from actions for specific performance. The case establishes that when a party withdraws from an oral contract due to the other party's failure to perform and seeks return of payments made, this is not covered by the Statute of Frauds. The Court emphasized that partial performance removes contracts from the statute's operation and that the statute should not become a shield for fraud or unjust enrichment.