Civil Law

Domingo Mercado et al vs Jose Espiritu

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G.R. No. L-11872 – 37 Phil. 215 – Civil Law – Obligations and Contracts – Parties to a Contract – May minors enter into a contract?; Minors who pretend to be of legal age may be bound to a contract

Margarita Espiritu was the owner of a 48 hectare land. In 1897, she died and the land was left to her husband (Wenceslao Mercado) and her children, Domingo Mercado, Josefa Mercado and 3 other siblings.

Apparently however, during the lifetime of Margarita in 1894, she executed a deed of sale transferring about 71% of her land (covering 15 cavans of seeds) to her brother Luis Espiritu (father of Jose Espiritu) for P2,000.00. After her death, Wenceslao had a hard time making ends meet for his family and so he took out a loan from Luis in the amount of P375.00. The loan was secured by the remainder of the lot. Later, that loan was increased to P600.00.

In May 1910, Luis entered into a notarized agreement with Domingo and Josefa whereby the two, while purporting to be of legal age, acknowledged the sale and the loan previously entered into by their parents with Luis. In the same agreement, the siblings agreed that for and in consideration of the amount of P400.00, they are transferring the remainder 29% (covering 6 cavans of seeds) to Luis.

But later, the siblings contested the said agreement. Luis later died and he was substituted by Jose. It is the contention of Domingo et al that the agreement is void because they were only minors, 19 and 18 years of age respectively, when the contract was entered into in May 1910 (21 being the age of minority at that time).

ISSUE: Whether or not the agreement between Luis and Domingo et al in May 1910 is valid despite the minority of the latter party.

HELD: Yes. In the first place, the minority of Domingo and Josefa were not proven with certainty because of the loss of official records (got burned down). However, even assuming that they were indeed minors, they are bound by their declaration in the notarized document where they presented themselves to be of legal age. Domingo claimed he was 23 years old in the said document. The Supreme Court declared: the sale of real estate, made by minors who pretend to be of legal age, when in fact they are not, is valid, and they will not be permitted to excuse themselves from the fulfillment of the obligations contracted by them, or to have them annulled in pursuance of the provisions of Law.

Further, there was no showing that the said notarized document was attended by any violence, intimidation, fraud, or deceit.

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