Inigo VS. Maloto

FACTS:

            Inigo paid Maloto the purchase price for the house and lot which is the object of contract of sale. No deed of sale was executed nor receipt printed. Inigo filed suit to compel the heirs of Maloto to execute the deed of sale as she was rejected in her demands.

ISSUE:

            WON the contract of sale is unenforceable?

HELD:

Under the civil code, a verbal agreement of sale is unenforceable unless ratified. However, this rule is only applicable to fully executory contracts not to contracts which are totally or practically performed. In this case, Inigo paid the purchase price and performed acts of ownership over the property (house and lot). These shows that the contract was already consummated. Therefore, the contract of sale is not within the ambit of statute of frauds and it does not matter whether the receipt or the sale was in writing.

Digest Credit: Kelly Espera

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