Cayabyab vs Intermediate Appellate Court G.R. No.

75120 April 28, 1994

Facts:

Respondents Gabriel, Soledad, Francesca are children of co-respondent spouses Faustino

Landingin and Agapita Ferrer. Petitioner is the son of Agapita Ferrer by her first husband,
Ludovico Cayabyab. In a complaint filed against petitioner, respondents asked for the
annulment of the deeds of sale and the recovery of possession of four parcels of land. They
alleged that petitioner was able to obtain the signatures of the spouses through fraud, undue
influence, and abuse of confidence. Petitioner avers that he acquired the land by virtue of
a Deed of Absolute Sale executed by the spouses in his favour. Trial Court dismissed the
complaint which Intermediate Appellate Court reversed ordering the annulment of the
deeds of sale and declaring the heirs of the spouses as owners of the parcels of land. Hence,
this petition.

Issue:

Whether or not the Deed of Sale was valid.

Held:

No, Deed of Sale is not valid. The subject lands formerly belonged to the conjugal
partnership of spouses and the heirs of the spouses are the owners of the parcels of land. It
is a general rule that whoever alleges fraud must substantiate his allegation since it is
presumed that a person takes ordinary care for his concerns and that private transactions
have been fair and regular.

Nevertheless, the general rule admits an exception, one of which is Article 1332 of the
Civil Code which provides; When one of the parties is unable to read, or if the contract is
in a language not understood by him, and mistake or fraud is alleged, the person enforcing
the contract must show that the terms thereof have been fully explained to the former.

In the case at bar, both spouses were illiterate and can only understand Pangasinense and
Ilocano but all the deeds were written in English. Since fraud is alleged by respondent, the
burden shifted to the petitioner to prove the contract had been explained to the vendors.
But petitioner failed to discharge this burden.