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Civil Law · Sales

Cabrera v. Ysaac

G.R. No. 166790November 19, 2014Leonen, J.Second Division

A co-owner cannot sell a definite portion of unpartitioned co-owned land without the other co-owners' consent; such a sale is void ab initio and cannot be enforced by specific performance.

Doctrine

Unless all co-owners have agreed to a partition, none of them may sell a definite portion of the co-owned property; a co-owner may only sell his or her proportionate undivided interest. A contract purporting to sell a specific or definite portion of unpartitioned land, without the consent of the other co-owners, is null and void ab initio. At most, such an agreement may be a contract to sell subject to the suspensive conditions of partition and the co-owners' consent, and Article 1592's requirement of judicial or notarial rescission does not apply to a contract to sell.

Facts

The heirs of Luis and Matilde Ysaac co-owned a 5,517-square-meter lot in Naga City covered by OCT No. 506. Co-owner Henry Ysaac verbally offered to sell to his lessee Juan Cabrera a 95-square-meter portion, later expanded to 439 and eventually reduced to 321 square meters, at P250.00 per square meter, with partial payments of P1,500.00 and P6,100.00 received. Cabrera's attempts to pay the balance were refused by Ysaac's wife, and Ysaac's counsel later sent a letter rescinding the sale. Before judgment, the entire property was sold by the heirs, through administrator Franklin Ysaac, to the local government of Naga City.

Issues and how the Court ruled

Whether there was a valid contract of sale between petitioner and respondent over a definite portion of co-owned, unpartitioned land.

None. The object of the alleged sale was a definite portion of property still held in common by the Ysaac heirs. Prior to partition, a co-owner may only alienate his undivided or ideal interest; selling a specific, metes-and-bounds portion operates as a partition and requires the unanimous consent of the other co-owners. No such consent or acquiescence was shown, so the contract was null ab initio. At best, the agreement was a contract to sell subject to the suspensive condition of partition and co-owners' consent.

Whether the agreement was validly terminated, and whether Article 1592 (judicial or notarial rescission) applies.

Article 1592 does not apply. That provision governs only a contract of sale of immovable property; here there was no contract of sale to rescind, making the issue moot. Even assuming respondent owned the property outright, the agreement was at most a contract to sell, and following Manuel v. Rodriguez, Article 1592 does not apply to a contract to sell where title remains with the vendor pending full payment. The law prescribes no form for cancelling a contract to sell, so the September 21, 1994 letter sufficed.

Whether petitioner is entitled to specific performance, actual damages, attorney's fees, and litigation costs.

Specific performance is unavailable because a non-existent contract is not a source of obligations and cannot be enforced by the courts; the double sale rule under Article 1544 is likewise moot since only the sale to Naga City was valid. Petitioner is entitled to the return of P10,600.00 to prevent unjust enrichment, since ownership could not be transferred to him. But attorney's fees and litigation expenses were deleted because petitioner had no clear right over the property to protect.

Ratio

A co-owner's right over co-owned property is only an ideal or abstract quota, not a physical portion; hence before partition he cannot alienate a concrete, determinate part of the thing owned in common. A sale of a definite portion operates as a partial partition and therefore requires the unanimous consent of all co-owners. Absent such consent, the contract has no valid object and is void ab initio, producing no obligations that courts can enforce.

Remember it as

💡 Ysaac sold a parking space he didn't yet own — a co-owner owns a slice of everything, not everything of a slice.

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