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In 1941, sisters Angela I. Tuason and Nieves Tuason de Barreto and their brother
Antonio Tuason Jr., co-owned a parcel of land in Sampaloc, Manila, each owning an
undivided 1/3 portion.

They agreed to improve the property by filling it and constructing roads thereon and
then subdividing it into small lots for sale, and thereafter dividing the proceeds
accordingly. Subsequently, Nieves sold her share to Gregorio Araneta Inc. This
agreement was embodied in a "Memorandum of Agreement."

Angela brought this suit asking the court to order the partition of the property.
Among other things, she alleges that the contract entered into was in violation of Art.
400 of the Civil Code, and further questioned the validity of the stipulation on the
ground that it virtually compelled them to remain in the co-ownership until after all
the lots have been sold.

ISSUE: Is the contract valid?

RULING: YES. The stipulation is valid, for the precise purpose of the agreement was
to eventually put an end to the co-ownership after the parcels had been sold. Their
being forced to remain, until after the sale, should be considered only as a means to
an end-a partnership so to speak, in order to dispose the lots.

"The provisions of Art. 400 of the Civil Code are not applicable. The contract far from
violating the legal provision that forbids a co-owner being obliged to remain a party
to the community, precisely has for its purpose and object the dissolution of the co-
ownership and of the community by selling the parcel held in common and dividing
the proceeds of the sale among the co-owners."

"The obligation imposed in the contract to preserve the co-ownership until all the
lots shall have been sold, is a mere incident to the main object of dissolving the co-
owners. By virtue of the document, the parties thereto practically and substantially
entered into a contract of partnership as the best and most expedient means of
eventually dissolving the co-ownership, the life of said partnership to end when the
object of its creation shall have been attained."