Essay Flashcards

Marisol, owner of an 18-hectare sugar estate, is pressed by creditors and signs a deed transferring the property to her cousin Jomar for PHP 3,000,000, while the fair market value is about PHP 7,500,000. The deed is signed, notarized, and Jomar pays and takes possession. A few days later, Marisol discovers the transfer and seeks rescission on the ground of lesion (injury) to her.
(a) Identify the doctrine that allows rescission in these circumstances and who has standing to sue for rescission.
(b) Distinguish rescission for lesion from a voidable contract arising from lack of free consent.
(c) If, before a court rules, Jomar resells the estate in good faith to a third party for PHP 3,100,000, what is the impact on Marisol’s right to rescind and on the third party’s rights?