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Land Sale Dispute: Lump Sum vs. Unit Price

The document summarizes a Supreme Court case regarding a land sale dispute. It describes how the respondents sold petitioner land stating an area of 4,000 sqm in the deed of sale, but the technical description in the title showed an area of 14,475 sqm. The petitioner argued it was a lump sum sale for the whole lot. The Supreme Court ultimately ruled that it was not a lump sum sale, citing jurisprudence that distinguishes lump sum from unit price contracts for land based on whether a fixed total price or per unit price is stated. Since a per unit price was stated here, it was not a lump sum sale.

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Lorie Jean Udarbe
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119 views2 pages

Land Sale Dispute: Lump Sum vs. Unit Price

The document summarizes a Supreme Court case regarding a land sale dispute. It describes how the respondents sold petitioner land stating an area of 4,000 sqm in the deed of sale, but the technical description in the title showed an area of 14,475 sqm. The petitioner argued it was a lump sum sale for the whole lot. The Supreme Court ultimately ruled that it was not a lump sum sale, citing jurisprudence that distinguishes lump sum from unit price contracts for land based on whether a fixed total price or per unit price is stated. Since a per unit price was stated here, it was not a lump sum sale.

Uploaded by

Lorie Jean Udarbe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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G.R. No.

148225, March 3, 2010


CARMEN DEL PRADO, Petitioner,
vs.
SPOUSES ANTONIO L. CABALLERO and LEONARDA CABALLERO, Respondents.
NACHURA, J.:

FACTS:
On June 11, 1990, respondents sold to petitioner, Carmen del Prado, Lot No. 11909 on the basis
of the tax declaration covering the property. The area stated in the deed of sale was 4,000 sqm. while
the technical description in the OCT, which was issued only on November 15, 1990, was 14,475 sqm.
Petitioner filed in the same cadastral proceedings a "Petition for Registration of Document
under Presidential Decree (P.D.) 1529" in order that a certificate of title be issued in her name, covering
the whole Lot No. 11909 claiming that since the sale was lump sum or cuerpo cierto, the vendor was
bound to deliver all that was included within said boundaries even when it exceeded the area specified
in the contract.
The RTC-Cebu City ruled in favor of petitioner. Ordered the OCT be cancelled and the TCT be
issued in the name of petitioner. The CA reversed. The "petition for registration of document" is not one
of the remedies provided under P.D. No. 1529, after the original registration has been effected. Hence,
this petition.

ISSUES: WON the sale of the land was for a lump sum.

HELD: NO.
Esguerra v. Trinidad: In sales involving real estate, the parties may choose between two types of pricing
agreement:

Unit price contract Lump sum contact


Detemined by way of reference to a stated rate States a full purchase price for an immovable the
per unit area (e.g., ₱1,000/sqm.). area of which may be declared based on the
estimate or where both the area and boundaries
are stated (e.g., ₱1 million for 1,000 sqm, etc.)
The statement of area of immovable is not The actual area delivered may not measure up
conclusive and the price may be reduced or exactly with the area stated in the contract.
increased depending on the area actually
delivered.
If vendor delivers less More than the area: Art. 1542: In the sale of real estate, made for a
than the area agreed lump sum and not at the rate of a certain sum for
upon: a unit of measure or number, there shall be no
increase or decrease of the price, although there
be a greater or less areas or number than that
stated in the contract. . . .
The vendee may The vendee has the
oblige the vendor to option to accept only
deliver all that may be the amount agreed
stated in the contract upon or to accept the
or demand for the whole area, provided he
proportionate pays for the additional
reduction of the area at the contract
purchase price if rate. (Rudolf Lietz, Inc.
delivery is not v. CA)
possible.

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