Flashcards Studio

Facts: A owns a parcel of land and negotiates a sale with B for PHP 6,500,000. They execute a deed of sale drafted by A’s counsel, stating there are no encumbrances and that title is marketable. Unknown to B, A’s long-time confidant has been pressuring A to sell quickly and exerts undue influence over him; A signs the deed without independent advice. B pays the price and the deed is delivered with the intention that title passes. After discovery of the undue influence, 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 (an unrecorded mortgage on the land in favor of Bank C and a long‑standing occupant’s lease not disclosed) affect the remedies and the outcome if B rescinds?