Portugal V Iac 173n1w

PORTUGAL v IAC, PORTUGAL

VOID CONTRACTS

FACTS: -

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Cornelia Clamor Portugal and husband bought a lot of lands in their lifetime. 1967: Hugo Portugal, their son, borrowed certificates in the pretext of securing a loan. Cornelia, a loving mother, assented to his son’s wishes. Husband died. Husband died. Cornelia requested to get certificates back. Hugo said no certificates exist anymore. Presented new certificates transferred to his and his brother Emiliano’s name via a falsificated deed of sale stating that Cornelia and husband sold to Hugo and Emiliano said lots for Php 8,000.00. Emiliano said he had no participation. As sign of good faith, he instated reconveyance of lots transferred to his name back to his mother. Hugo refused to follow. Hugo argues action prescribed because contracts attended by fraud can only be brought to court within four years of discovery.

ISSUE: WoN action has prescribed WoN the respondent court was justified in disturbing the trial court's findings on the credibility of the witnesses presented during the trial WoN the appellate court could entertain the defense of prescription which was not raised by the private respondents in their answer to the complaint nor in a motion to dismiss. RULING: -

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Sale is not simply attended by fraud. Since petitioners had no knowledge of such sale, there was no consideration ever paid to petitioners for the alleged fraudulent sale. Hence, contract of sale is void ab initio. Void contracts have no prescription. They are void from the start and cannot be prescribed/ratified.