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Vda de Chua vs IAC
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0 Vda. De Chua v. IAC AUTHOR : Kelsey

G.R. No. 70909. January 5, 1994 NOTES:
TOPIC: Cases Where Special Powers of Attorney Are Necessary
PONENTE: QUIASON, J.:
FACTS:
1. Sometime in 1950, defendant Herminigilda Herrera executed a Contract of Lease in favor of Tian On (
whereby the former leased to the latter a couple of lots in Cebu City, for a term of ten (10) years, renewable
(5) years. The contract of lease contains a stipulation giving the lessee an option to buy the leased property an
guarantees to leave the possession of said property to the lessee for a period of ten (10) years or as long as the
fulfills the terms and conditions of their contract.
2. In accordance with the said contract of lease, the lessee, Tian On, erected a residential house on the leased prem
3. Within 4 years from the execution of the said contract of lease, the lessee, Sy Tian On, executed a Deed of A
Building in favor of Chua Bok, the predecessor-in-interest of the plaintiffs herein, whereby the former sold
aforesaid residential house for and in consideration of the sum of P8,000.00
4. In the deed, it was said that the sale was is made with the knowledge and express consent of the lot-ow
Herminigilda Herrera who is represented by her attorney-in-fact, Vicenta R. de Reynes who hereby also honor
of the lease made by Sy Tian On in favor of Chua Bok, and promises and binds herself to respect and abide
and conditions of the lease contract which is now assigned to the said Chua Bok.
5. After the expiration of the contract of lease in the plaintiffs herein, who are the successors-in-interest of Chu
meanwhile died) continued possession of the premises up to April 1978, with adjusted rental rate.
6. On July 26, 1977, defendant Herrera through her attorney-in-fact, Mrs. Luz M. Tormis, who was authorize
 power of attorney, sold the lot s in question to defendants-spouses, Vicente and Victoria G o. The defendants-sp
to have aforesaid sale registered with the Register of Deeds of the City of Cebu and the titles to the two parce
transferred in their names.
7. Thereafter, plaintiffs filed the instant case seeking the annulment of the said sale between Herminigilda Herr
Vicente and Victoria Go, alleging that the conveyance was in violation of the plaintiffs’ right of option to
 premises as provided
pr ovided in the Contract of Lease and that the defendants-spouses acted in bad faith in purchas
knowing fully well that the said plaintiffs have the option to buy those lots.
ISSUE(S):
1. W/N the defendants was in bad faith in the purchase of the lots knowing that plaintiffs had the option to buy sa
HELD:
1.  No.
RATIO: The lease contract,  petitioners’ cause of action, involves t he lease
l ease of real property for a period of more
contract was entered into by the agent of the lessor and not the lessor herself. In such a case, the law requires that the
with a special power of attorney to lease the premises.

Article 1878 of the New Civil Code, in pertinent part, provides: "Special Powers of Attorney are necessary in the follow
(8) To lease any real property to another person for more than one year."

It is true that respondent Herrera allowed petitioners to occupy the leased premises after the expiration of the lease con
Article 1670 of the Civil Code of the Philippines, a tacit renewal of the lease is deemed to have taken place. However, a
limited only to the terms of the contract which are germane to the lessee’s right of continued enjoyment of the proper
extend to alien matters, like the option to buy the leased premises.

We dismissed Dizon’s
Dizon’s appeal and sustained the interpretation of the Court of Appeals that "the other terms of the o
mentioned in Article 1670, are only those terms which are germane to the lessee’s right of continued enjoyment of the p
We held:
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Documents  Politics & Current Affairs  Politics

156 views 0 0
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Vda de Chua vs IAC
Uploaded by Kelsey Olivar Mendoza
Government vs Never Split the hodges vs salas
Brief Case Digest on An Agency Law Case for agency
Abadilla Difference: Negotiating
law in the Philipippines Full description

   
Save Embed Share Print