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9. RTC ruled in favor of respondents: forfeiture of Tan’s supervening event of a legal encumbrance on the property
downpayment was proper in accordance with terms and negligence, we find and so hold that the forfeiture of Tan's
conditions of contract down payment was clearly unwarranted
CA affirmed
ISSUE: WON PUBLIC SALE IS VALID
1. SEPT. 1952 Proper land authorities issued in favor HELD: NO. Under Sec. 118 of the Public Land Law (Com. Act
of herein appellant Lino Artates and Manuela Pojas 141)
ARTATES V. URBI (spouses Artates) a homestead duly registered in
their names -This provision has been held as mandatory; a sale made in
A provision against the alienation or violation thereof is null and void and produces no effect
encumbrance of public lands 2. Lino Artates inflicted injuries upon herein whatsoever.
granted with in five years from the defendant Daniel Urbi who then filed Civil Case
against the former. Though it may be a limitation on the right of ownership of the
issuance of the patent, it has been
grantee, the salutary purpose of the provision cannot be denied: it
held, is mandatory; a sale made in 3. Court of the CFI awarded damages in favor of Urbi is to preserve and keep for the homesteader or his family the land
violation thereof is null and void and in the amount of P1,476.35 given to him gratuitously by the State so that being a property
produces no effect whatsoever. 4. so in June 1962, the Provincial Sheriff of Cagayan owner, he may become and remain a contented and useful
made a public sale of the homestead to satisfy the member of our society.
Under Sec. 118 of the Public Land said judgment. This is true eve if the sale involved is not voluntary. For purposes of
Law (Com. Act 141), such 5. The spouses Artates alleged that the sale of the complying with the law, it is immaterial that the satisfaction of the
homestead, generally cannot be homestead to satisfy Artates’ indebtedness violated debt by the encumbrancing or alientation of the land grant was
sold, cannot be encumbered, and the the Public Land Law exempting said property made voluntarily an is the case of ordinary sale, or involuntarily,
cannot be held liable for the from execution for any debt contracted within 5 such as that effected through levy on the property and consequent
satisfaction “of any debt years from the date of the issuance of the patent, sale at public auction. In both instances, the spirit of the law
CONTRACTED” prior to the and that Urbi executed a deed of sale of the same would have been violated.
expiration of the period of five parcel of land in June 1961 for the sum of P2,676.35 Considering the protective policy of the law, it becomes apparent
years from and after the date of to herein defendant Crisanto Soliven, who was a that "debt contracted" was used in it in the sense of "obligation
the issuance of the patent or minor, to defraud them. incurred," since Webster gives the verb to "contract" the meaning of
grant. 6. CFI upheld the execution made by the Provincial "to bring on; incur; acquire ; thus, applicable to both contractual and
Sheriff upon the homestead, and at declared null extra contractual debts considering the protective policy of the law.
and void the sale of the land between Urbi and The execution sale in this case being null and void, the possession
Soliven. of the land should be returned to the owners, the herein appellants.
There would even be no need order appellee Urbi to execute a
deed of reconveyance thereof of to the owners
HEIRS OF ENRIQUE ZAMBALES 1. The Zambales spouses were the homestead Issue: Whether or not the sale of the land to Preysler is valid
vs. CA patentees of a parcel of land situated in the
Municipality of Del Pilar, Roxas, Palawan. Held: No. The sale of the land to Preysler is not valid.
ART 1459 - The Court finds that the Zambaleses were not misled into
2. They claimed that Nin Bay Mining Corporation had
removed silica sand from their land and destroyed the signing the Compromise Agreement, but they hold that there
SALE WITHIN THE PROHIBITORY plants and others improvements thereon. has been a violation of the Public Land Act.
PERIOD, ILLEGAL AND VOID. — 3. Zambaleses filed a civil case before the CFI of -The land in question was awarded to the Zambaleses as a
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岷倫洛區 筆記 SALES AND LEASE – ATTY. BUSMENTE
The sale of a homestead lot within Palawan claiming damages. Nin Bay denied having homestead on September 6, 1955
the five-year prohibitory period is caused damage to the Zamabaleses’ land. -The Compromise Agreement executed on October 29, 1959 is in
illegal and void. The law does not 4. On October 29, 1959, the Zambaleses, duly assisted violation of the Public Land Act
distinguish between executory and by their counsel and the Corporation, entered into a
consummated sales. The bilateral -The sale of a homestead lot within the five-year prohibitory
Compromise Agreement. period is illegal and void. The law does not distinguish
promise to buy and sell the
- (1) Nin Bay shall pay the Zambaleses a total rental between executory and consummated sales.
homestead lot at a price certain,
price in lieu of damages; (2) the Zambaleses bind -The bilateral promise to buy and sell the homestead lot at a price
which was reciprocally demandable
(Article 1479. Civil Code), was themselves to sell, transfer and convey their land to certain, which was reciprocaly demandable, was entered into within
Nin Bay, and the latter shall pay for the land at a fixed the 5-year prohibitory period and is therefore, illegal and void.
entered into within the five-year
prohibitory period and is therefore, selling price of P500 per hectare; and with that the Further, the agency to sell the homestead lot to a third party was
Zambaleses release Nin Bay from all liabilities. coupled with an interest in as much as bilateral contract was
illegal and void.
5. On September 10, 1960, Nin Bay Mining dependent on it and was not revocable at will by any of the parties.
Corporation, as attorney-in-fact for the Zambaleses (as -To all intents and purposes, therefore, there was an actual
Vendors) sold the disputed property to Joaquin B. executory sale perfected during the period of prohibition
Preysler. TCT was issued in the vendee's name on except that it was reciprocally demandable thereafter and the
December 19, 1960. The Secretary of Agriculture agency to sell to any third party was deferred until after the
and Natural Resources approved the sale to expiration of the prohibitory period. That "rentals" were
Preysler of the subject property. ostensibly to be paid during the five-year prohibitory period, and the
6. decision on the CA 10 yrs, and sale 9 yrs, the agency to sell made effective only after the lapse of the said period,
Zambaleses filed a civil case for "Annulment of a was merely a devise to circumvent the prohibition.
Deed of Sale with Recovery of Possession and - As the contract is void from the beginning, for being expressly
Ownership with Damages". prohibited by law the action for the declaration of its inexistence
7. The Zambaleses: unschooled and not aware of the does not prescribe. Being absolutely void, it is entitled to no
contents of the compromise agreement, and their land authority or respect, the sale may be impeached in a collateral
was acquired and registered through fraud and proceeding by any one with whose rights and interest it conflicts.
deceit. Nin Bay: contents were read to the
Zambaleses.
RTC in favor of the Zamabaleses.
CA reversed after finding that the alleged fraud or
misrepresentation was not substantiated by
evidence.
QUIROGA VS PARSONS 1. On 24 Janaury 1911, Andres Quiroga and Parsons Issue: Whether or not Parsons, by reason of the contract was
ARTICLE 1466 Hardware Co. entered into a contract: the exclusive a purchaser or an agent of Quiroga for the sale of his beds
sale of Quiroga Beds in the Visayan Islands. Held: No. Parsons, by reason of the contract was not a
2. In the contract, Don Andres Quiroga grants the purchaser or an agent of Quiroga for the sale of his beds. But
SALES; INTERPRETATION OF
exclusive right to sell his beds in the Visayan the contract by and between Parsons and Quiroga is one of
CONTRACT. — For the
Islands to J. Parsons under certain conditions. purchase and sale.
classification of contracts, due
regard must be paid to their -- Quiroga shall furnish beds of his manufacture to -In order to classify a contract, due regard must be given to its
essential clauses. Only the acts of Mr. Parsons for the latter's establishment in Iloilo, essential clauses. In the contract in question, what was essential,
the contracting parties, subsequent and shall invoice them at the same price he has as constituting its cause and subject matter, is that Quiroga was to
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岷倫洛區 筆記 SALES AND LEASE – ATTY. BUSMENTE
to and in connection with, the fixed for sales, in Manila, and, in the invoices, shall furnish the defendant with the beds which the latter might order, at
performance of the contract must be make an allowance of a discount of 25 per cent of the price stipulated) and that Parsons was to pay the price in the
considered in the interpretation of the invoiced prices, as commission on the sales; manner stipulated.
the contract when such and Mr. Parsons shall order the beds by the dozen, -The price agreed upon was the one determined by Quiroga for
interpretation is necessary, but not whether of the same or of different styles. the sale of these beds in Manila, with a discount of from 20 to
when, as in the instant case its 3. Quiroga filed a case against Parsons alleging that 25 per cent, according to their class. Payment was to be made
essential agreements are clearly set the latter violated the following obligations stated in at the end of sixty days, or before, at the Quiroga's request, or in
forth and plainly show that the the conditions: not to sell the beds at higher prices cash, if the defendant so preferred, and in these last two cases an
contract belongs to a certain kind than those of the invoices; to have an open additional discount was to be allowed for prompt payment. These
and not to another. establishment in Iloilo; itself to conduct the agency; to are precisely the essential features of a contract of purchase
keep the beds on public exhibition, and to pay for the and sale.
advertisement expenses for the same; and to order the -There was the obligation on the part of the plaintiff to supply
beds by the dozen and in no other manner. the beds, and, on the part of the defendant, to pay their price.
4. With the exception of the obligation on the part of These features exclude the legal conception of an agency or order
Parsons to order the beds by the dozen and in no other to sell whereby the mandatory or agent received the thing to sell it,
manner, none of the obligations imputed to Parsons in and does not pay its price, but delivers to the principal the price he
the causes of action are expressly set forth in the obtains from the sale of the thing to a third person, and if he does
contract. not succeed in selling it, he returns it. By virtue of the contract
5. But Quiroga alleged that Parsons was his agent for between the plaintiff and the defendant, the latter, on receiving the
the sale of his beds in Iloilo, and that said obligations beds, was necessarily obliged to pay their price within the term
are implied in a contract of commercial agency. fixed, without any other consideration and regardless as to whether
he had or had not sold the beds.
-In respect to the defendant's obligation to order by the dozen, the
only one expressly imposed by the contract, the effect of its breach
would only entitle the plaintiff to disregard the orders which the
defendant might place under other conditions; but if the plaintiff
consents to fill them, he waives his right and cannot complain for
having acted thus at his own free will.
-For the foregoing reasons, the Court is of opinion that the contract
by and between Quiroga and Parsons was one of purchase and
sale, and that the obligations the breach of which is alleged as a
cause of action are not imposed upon Parsons, either by
agreement or by law.
CONCRETE AGGREGATES INC CTA reviewed the accounts of Concrete Aggregates ISSUE:
VS. CTA and orders them to pay for sales and ad valorem taxes
WON the petitioner is a contractor subject to the 3%
for being a manufacturer. Petitioner contends that it is
contractor's tax under Section 191 of the 1968 National Internal
not a manufacturer but a contractor who undertakes its
In a contract of sale, the article is Revenue Code or a manufacturer subject to the 7% sales tax under
business by furnishing its customers with asphalt or
already substantially in existence at Section 186 of the same Code.
concrete.
the time of the order and merely
requires some alteration, 1. After conducting an investigation on the tax liabilities
of Concrete Aggregates, CTA issued a resolution: HELD:
modification or adaptation to the
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岷倫洛區 筆記 SALES AND LEASE – ATTY. BUSMENTE
buyer's wishes or purposes. A -Concrete Aggregates is a manufacturer subject to the The Petitioner is a manufacturer as defined in Sec
contract for the sale of an article 7% sales tax 194.
which the vendor in the ordinary 2. Petitioner must pay total amount of P244,022.76 -... who by physical or chemical process alters the exterior texture
course of his business representing sales and ad valorem taxes for the first or form or inner substance of any raw material or manufactured or
manufactures or procures for the semester of 1968 inclusive of surcharges, plus partially manufactured product in such manner as to prepare it for a
general market, whether the same interest at the rate of 14% per centum from January special use or uses to which it could not have been put in its
is on hand at the time or not is a 1, 1973 up to the date of full payment thereof pursuant original condition, or who by any such process alters the
contract for the sale of goods. to Section 183 (now 193) of the National Internal quality of any such raw material ...
Revenue Code. -Petitioner's raw materials are processed under a prescribed
3. Concrete Aggregates is an aggregate plant at formula and changed by means of machinery into a finished
Montalban, Rizal - processes rock aggregates mined by product, altering their quality, transforming them into marketable
it from private lands state or preparing them for any of the specific uses of industry.
-maintains and operates a plant at Longos, Quezon City -The raw materials become a distinct class of merchandise or
for the production of ready-mixed concrete and plant- "finished products for the purpose of their sales or distribution to
mixed hot asphalt others and not for his own use or consumption
4. Respondent assessed and demanded payment from -Petitioner, as a manufacturer, not only manufactures the finished
petitioner articles but also sells or distributes them to others. The sale of a
5. Through a letter, petitioner disputed the said manufactured product is properly incident to manufacture.
assessment without contesting the portion pertaining to -What practically prevents the petitioner from mass production and
the ad valorem tax. storage is the nature of its products, that is, they easily harden due
6. Respondent reiterated the said assessment of sales to temperature change and water and cement reaction.
and ad valorem taxes. Respondent demanded for the -Specialty contractor - one whose operations pertain to construction
payment within ten days from receipt of the letter, work requiring special skill and involves the use of specialized
otherwise the same would be collected thru the building trades or crafts. The manufacture of concrete and cement
summary remedies provided for by law. mix do not involve the foregoing requirements as to put it within
7. Instead of paying, petitioner appealed to such special category.
respondent court. Contractor
CTA- denied the petition for review for lack of merit as -A person who, in the pursuit of the independent business,
well as the motion for reconsideration undertakes to do a specific job or piece of work for other persons,
"Sec. 191. Percentage tax on road, building, using his own means and methods without submitting himself to
irrigation, artesian well, waterworks, and other control as to the petty details.
construction work contractors, proprietors or Test = that he renders service in the course of an independent
operators of dockyards, and others. — Road, occupation, representing the will of his employer only as to the
building, irrigation, artesian well, waterworks, result of his work, and not as to the means by which it is
and other construction work contractors; . . . accomplished."
and other independent contractors, . . . shall -Petitioner was formed and organized primarily as a manufacturer;
pay a taxequivalent to three per that it has an aggregate plant at Montalban, Rizal, which processes
centum of their gross receipts." rock aggregates mixed by it from private lands; it operates
Contentions of the Petitioner a concrete batching plant at Longos, Quezon City.
-Its business falls under "other construction work
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岷倫洛區 筆記 SALES AND LEASE – ATTY. BUSMENTE