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All Jurisprudence based

0 tracked cards Civil Law and Land Titles and Deeds

An elderly landowner, Marcos, for years relies on his physician, Dr. Santos, who uses a position of trust to influence Marcos to sign a deed transferring Marcos’s 50-hectare farm to Dr. Santos for a price far below its fair value. The deed is notarized and recorded. Dr. Santos later sells the land to a developer, who purchases for value and records. Marcos seeks rescission of the deed against Dr. Santos. Which statement best reflects the controlling doctrine and consequences under Philippine law?

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The contract is voidable due to undue influence; rescission is the proper remedy; if a third-party buyer acquired the land in good faith for value and recorded before rescission, his title remains valid and protected, and Marcos may sue Dr. Santos for damages or to recover the price. The remedy is merely to cancel the deed; the third party can sue Marcos for damages for any loss. The agreement is voidable; rescission is available; however, a third-party buyer in good faith for value who has already recorded can be compelled to reconvey the land to Marcos. The contract is voidable, but a subsequent buyer’s title becomes void upon rescission, regardless of good faith or value.

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