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All Jurisprudence based

0 tracked cards Civil Law and Land Titles and Deeds

A owns Parcel Nova and negotiates a sale with B for PHP 4,500,000. They execute a deed of sale drafted by A’s counsel, which states there are no encumbrances and that title is marketable. Unknown to B, A has concealed (1) a long‑standing mortgage on Parcel Nova in favor of Bank C; (2) a tenant’s lease not disclosed; and (3) a misdescription of the subject property, conveying Parcel Gamma instead of Parcel Nova. B pays the price and the deed is delivered with the intention that title passes. After discovery of the encumbrances and the misdescription, B sues for rescission and damages. (a) Identify the essential contract element defective in these facts and name the doctrinal basis governing it. (b) Is the contract voidable or void? Explain the applicable remedy. (c) How do third‑party encumbrances (the mortgage to Bank C and the occupant’s lease) affect the remedies and the outcome if B rescinds?

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Consent is defective due to failure to observe formalities for a land sale; the contract is void; the remedy is nullification and possible reformation; encumbrances remain as claims against the property. Consent is defective due to fraud (dolo) from concealment of encumbrances and misdescription; the contract is voidable; the remedy is rescission with restitution and damages; third‑party encumbrances do not defeat the rescission, though they remain on the land and may be pursued separately by the encumbrancers. Consent is defective due to undue influence by a confidential adviser; the contract is voidable; the remedy is rescission; third‑party encumbrances do not affect the validity but remain burdens on title and may limit conveyance after rescission. Consent is valid and the conveyance is enforceable; the remedy is specific performance to deliver marketable title; encumbrances must be cured before transfer.

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