G.R. No.
12605 September 7, 1918 never presumes, but that plaintiff in fact signed the
Uy Soo Lim vs Benito Tan Unchuan deed of cession in question without relying upon the
statements and representations of the defendants as
Facts: An action for annulment of contract by terms was instituted by Uy Soo the motive for signing the same; that before signing the
Lim against Francisca Pastrano, wherein he sold all his interest in the estate of same he understood the nature of said document, its
the late Santiago Pastrano Uy Toco to her. contents and its effect upon his interest, and that in
signing the same he was determined by the advice of his
Santiago Pastrano Uy Toco, a Chinese, came from China to reside own agent Choa Tek Hee and upon the advice of his two
in the Philippines. He married Candida Vivares; two daughters were lawyers, who explained to him fully and to his complete
born, Francisca and Concepcion understanding the nature, contents and effect of said
In 1891, he returned to China and bore a son, Uy Soo Lim, with a instrument.
Chinese woman, Chan Quieg
Santiago returned to the Philippines. He never saw Chan Quieg Issue: WON the contract entered into by Uy Soo Lim be declared null and void
anymore but he received letters from her informing that she had on the ground of minority?
borne him a son. When he died, a large portion of his estate was
given to Uy Soo Lim (through a will instituted by Santiago). Ruling: No.
A couple of suits where filed regarding this distribution. The effect
of all was to put the right of Uy Soo Lim to 7/9 of the property and (1) Because, with a full knowledge of his rights in the premises, he failed to
even to put in question his right to receive anything at all disaffirm his contract within a reasonable time after reaching majority; and
o Candida Vivares filed a motion claiming that as a widow,
she has the right to ½ of the estate of Santiago. A motion
of similar purport was filed by her in the matter of (2) Because he not only failed to tender, or offer to produce and pay the
guardianship of Uy Soo Lim et al. consideration in esse when he reached majority, and when he filed his action,
o Francisca and Concepcion filed, through their attorneys, but proceeded, after such events, to demand, collect and dispose of such
a motion in the guardianship of Uy Soo Lim , alleging consideration when according to his own statement under oath he had no
that he was not entitled for the reason that the other funds with which to make reimbursement.
marriage between Santiago and her mother was null
and void and that he was not a legitimate or illegitimate (3) He was surrounded by able advisers, legal and otherwise, retained to
son protect his interests.
o Chan Quieg also asked to be declared entitled to ½ of
the estate.
Failure to disaffirm his contract within a reasonable time after reaching
Meanwhile, Uy Soo Lim had married in China. He was aware of the
majority
fact that he was heir under the terms of the will of Santiago, having
already drawn from the estate for his personal use P26,800. October 8, 1913 – Uy Soo Lim reached the age of majority. Of the 82,500 due
Before setting out for Manila, Uy Soo Lim employed Choa Tek Hee, to him, 62,500 was deposited during the time he attain the age of majority
a resident merchant of Manila, to be his agent and advisor. He also
secured the services of two attorneys, Major Bishop to represent
him in Manila and Levering to represent him in Cebu. 20,000 – deposited when he was a minor
An agreement was reached between Choa Tek Hee and Uy Soo Lim 62,500 – age of majority
and Tan Unchuan and Del Rosario, attorney representing the o Spent 7,500 before filing the suit to annul
interest of Candida Vivares and Francisca and Concepcion to the deed of cession
submit the entire matter in dispute to the judgment of three o 55,000 filing the suit to annul the deed of
respectable Chinese merchants. cession in Manila
o Conclusion was reached that the sum of P82,500 should 36,000 – after the filing of the suit
be accepted by Uy Soo Lim in full satisfaction and 7,200 – disposed by plaintiff
relinquishment of all his right, title, and interest in the more than 2 years after he
estate of Santigao. This was accepted by both parties. reached majority
Uy Soo Lim then executed a deed by which
he relinquished and sold to Francisca It is important to note that this final P7,200 was disposed of by plaintiff on April
Pastrano all his right, title, and interest in the 13, 1916, or more than two and a half years after he reached his majority, and
estate of Santiago. This is the document he an equal time after he knew all the facts now alleged by him to constitute
is seeking to annul. fraud.
Several documents were executed in favor
of Francisca Pastrano re estate of Santiago.
All these documents were presented to court. Thus, the court Uy Soo Lim became of age under Philippine laws on October 8, 1913. On March
issued an order in the matter of guardianship of Uy Soo Lim by 31, 1913 (some months prior to reaching majority), he filed suit against Choa
which Francisca was declared the sole owner of the property. Tek Hee for an accounting, wherein reference is had to this bill of sale and to
the fact of minority. The purpose of that action was to reduce to possession
Thus, Uy Soo Lim filed (in 1914) an action to rescind and annul the
the consideration accruing to him from his bill of sale. (Note that he only file
deed he entered into on the ground that he was induced to execute
the petition in 1914 re deed he executed in favor of Francisca)
the deed of cession and that they were taking advantage of his
youth, passions, and inexperience by misrepresenting material
facts concerning the value of the property and interest in Knowing his legal rights, therefore, plaintiff should have been prompt to
questions. disaffirm his contract upon reaching majority. This was not done. Instead, he
Lower court held that appellant had not been induced by deceit or deliberately permitted defendants to continue making payments thereunder,
undue influence but did so deliberately with full knowledge of the and then, on May 25, 1914, when the last cent upon such contract was
facts, after mature deliberation and upon advice of capable collected, sought to avail himself of this ground of rescission. This was almost
counsel. eight months after he had attained his majority.
o Some shadow of claim might be made on this issue if
plaintiff, then a minor, had signed the document As a result of his failure to disaffirm promptly on reaching majority, he received
without careful and competent advisers to direct him. a balance of P30,000 upon the contact, which amount certainly would not
He had however three advisers. have been paid if it had been known that he was about to attempt to repudiate
o Not only has plaintiff not sustained the burden of his agreement. This amount was not only collected by Uy Soo
proving the fraud, imposition and deceit, which the law
Lim after reaching majority, but was effectually disposed of as rapidly as
possible.
Failure to tender, or offer to produce and pay the consideration in esse when
he reached majority
Positive statutory law, no less than uniform court decisions, require, as a
condition precedent to rescission of a contract on account of minority that the
consideration received be refunded. We cite and quote as follows:
ART. 1295 (Civil Code). Rescission obliges the return of the things
which were the objects of the contract, with their fruits and the
sum with interest; therefore it can only be carried into effect when
the person who may have claimed it can return that which, on his
part, he is bound to do.
ART. 1304 (Civil Code). When the nullity arises from the
incapacity of one of the contracting parties, the incapacitated
person is not obliged to make restitution, except to the extent he
has profited by the thing or by the sum he may have received.
ART. 1308 (Civil Code). While one of the contracting parties does
not return that which he is obliged to deliver by virtue of the
declaration of nullity, the other cannot be compelled to fulfill, on
his part, what is incumbent on him.
Not only should plaintiff have refunded all moneys in his possession upon filing
his action to rescind, but, by insisting upon receiving and spending such
consideration after reaching majority, knowing the rights conferred upon him
by law, he must be held to have forfeited any right to bring such action.
Article 1314, Civil Code, provides as follows:
The action for nullity of a contract shall also be extinguished when
the thing which is the object thereof should be lost by fraud or
fault of the person having the right to bring the action.
If the cause of the action should be the incapacity of any of the
contracting parties, the loss of the thing shall be no obstacle for the
action to prevail, unless it has occurred by fraud or fault on the part
of the plaintiff after having acquired capacity.
Plaintiff has disposed of the whole of the P85,000 which was paid him in
consideration of the execution of the contract he is now seeking to annul. The
record establishes beyond peradventure of doubt that he is utterly without
funds to reimburse this consideration. In the Choa Tek Hee suit (Exhibit 10)
there appears at folio 17 a motion by plaintiff, under oath, wherein he recites
as a ground for realizing certain of the moneys deposited under this contract
that he (plaintiff) has no funds with which to support himself except such as
may be advanced to him out of the moneys belonging to him which is now or
may hereafter be in the hands of the clerk of this court." Being without other
funds, there was the greater reason why this deposit, derived from the very
contract sought to be repudiated, should have been held intact to reimburse
his vendee.
Whatever difference may exist in the authorities as to the obligation of the
infant to return the entire consideration received as a condition precedent to
disaffirming the contract, they are unanimous in holding that he must return
such portion thereof as remains in his possession when reaching majority.
Rationale behind this rule: To allow the infant to retain the consideration and
yet to repudiate or disaffirm the conveyance, would tempt as well as enable
him to practice frauds upon others
