Key Takeaway: Void Contracts Are Imprescriptible and Cannot Convey Property Rights

Spouses Teodorico M. Viovicente and Dominga L. Viovicente v. Spouses Danilo L. Viovicente and Alice H. Viovicente, the Register of Deeds of Calamba, Laguna, G.R. No. 219074, July 28, 2020

Imagine signing away your family home under duress, only to discover years later that the document was not only forced but also fraudulent. This is the heart-wrenching reality faced by Teodorico and Dominga Viovicente, who found themselves embroiled in a legal battle over their property in Laguna. The Supreme Court’s ruling in their case sheds light on the critical principle of the imprescriptibility of void contracts and the importance of genuine consent in property transactions.

The Viovicentes’ ordeal began when their son, Danilo, allegedly coerced them into signing a Deed of Absolute Sale in 1993, claiming the property as his own. Years later, they discovered that a second deed dated 1995 had been used to transfer the title to Danilo and his wife, Alice. The central legal question was whether the Viovicentes’ action for reconveyance of their property was barred by prescription, given the time that had elapsed since the alleged fraud.

Legal Context

In the Philippines, the concept of imprescriptibility is crucial when dealing with void contracts. According to Article 1410 of the Civil Code, “The action or defense for the declaration of the inexistence of a contract does not prescribe.” This means that if a contract is void from the beginning, the affected party can seek to nullify it at any time.

A contract of sale, as defined by Article 1458 of the Civil Code, requires three essential elements: consent or meeting of the minds, a determinate subject matter, and a price certain in money or its equivalent. If any of these elements is missing or simulated, the sale is considered void. For instance, if a deed of sale states that a price has been paid but in reality, no payment was made, the contract is null and void ab initio for lack of consideration.

This principle is not just a legal technicality; it’s a safeguard against fraudulent transactions. Imagine a scenario where someone sells a car but never receives payment. The buyer cannot claim ownership simply because a document was signed. Similarly, in property disputes, if a deed is forged or lacks genuine consent, it cannot transfer ownership, regardless of how much time has passed.

Case Breakdown

Teodorico Viovicente, a GSIS employee, had purchased a property in Laguna through a housing loan in 1983. In 1993, his son Danilo allegedly forced him and his wife Dominga to sign a Deed of Absolute Sale. Teodorico testified that Danilo threw a briefcase at him and shouted, “pirma, pirma, unsa dili mo pirma” (sign, sign, why won’t you sign), compelling them to sign without receiving any payment.

In 2002, the Viovicentes learned that Danilo had transferred the property to his name using a second deed dated December 14, 1995, which they claimed was forged. They filed a complaint for reconveyance and nullity of the sale in 2003.

The trial court ruled in favor of the Viovicentes, declaring the 1993 deed void for lack of consideration and the 1995 deed as spurious. However, the Court of Appeals reversed this decision, arguing that the action had prescribed since the title was issued in 1996.

The Supreme Court, in its ruling, emphasized the imprescriptibility of void contracts. They noted that the Viovicentes’ action was not barred by prescription because the deeds were void from the start. The Court stated:

“The elementary rule is that the allegations in the complaint determine the cause of action. Here, the complaint below clearly alleged an action for reconveyance of property based on null deed of sale.”

Furthermore, the Court found that the 1995 deed was indeed forged, as evidenced by:

• NBI Senior Document Examiner Noel Cruz’s testimony that the date on the deed had been altered from 1993 to 1995 using snopake.
• Danilo’s admission that the 1995 deed was unilaterally executed by his brother Phio to avoid penalties.
• Teodorico’s proof that he was at work in Tacloban on the date the 1995 deed was supposedly notarized in Makati.

The Supreme Court concluded:

“Since the Deed of Sale dated December 14, 1995 was Phio’s own making, there was, therefore, no actual sale of subject property made on said date by the real owners herein petitioners Spouses Teodorico and Dominga Viovicente.”

Practical Implications

This ruling reaffirms the principle that void contracts, such as those lacking genuine consent or consideration, are imprescriptible. Property owners and buyers must ensure that all elements of a valid contract are present and that the transaction is free from coercion or fraud.

For individuals facing similar disputes, it’s crucial to gather evidence of the contract’s invalidity, such as proof of non-payment or coercion. Legal action can be taken at any time to nullify a void contract, providing a powerful tool for those seeking to reclaim their property rights.

Key Lessons:

• Ensure that all contracts, especially those involving property, are entered into willingly and with full understanding of the terms.
• Keep detailed records of payments and transactions to prove the validity or invalidity of a contract.
• Seek legal advice promptly if you suspect fraud or coercion in a property transaction.

Frequently Asked Questions

What does imprescriptibility mean in the context of void contracts?

Imprescriptibility means that an action to declare a void contract as such can be filed at any time, without being barred by the passage of time.

Can a forged deed transfer property ownership?

No, a forged deed cannot transfer ownership. If a deed is found to be forged, it is considered void and does not confer any rights to the supposed buyer.

What are the essential elements of a valid contract of sale?

The essential elements are: consent or meeting of the minds, a determinate subject matter, and a price certain in money or its equivalent.

How can I prove that a contract was entered under duress?

You can prove duress through witness testimony, evidence of threats or coercion, and any documentation or recordings that show the circumstances under which the contract was signed.

What should I do if I suspect a property transaction was fraudulent?

Immediately consult with a lawyer, gather all relevant documents, and consider filing a complaint for nullity of the contract and reconveyance of the property.

ASG Law specializes in property law and contract disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.