Republic of the Philippines SUPREME COURT Manila THIRD DIVISION SPS.

RAMON LEQUIN and VIRGINIA LEQUIN, Petitioners, G.R. No. 177710 Present$ C%RPIO, J#, Chairperson, CHICO N%&%RIO, VE'%SCO, (R#, N%CHUR%, an" PER%'T%, JJ# Pro)ul*ate"$ October +,, ,--. / DECISION VELASCO, JR., J.: T ! Ca"! This is an appeal un"er Rule 01 fro) the Decision 2+3 "ate" (ul4 ,-, ,--5 of the Court of %ppeals 6C%7 in C% 8#R# CV No# 9:1.1, ;hich "eclare" the Kasulatan ng Bilihang Tuluyan ng Lupa2,3 6Kasulatan7 !ali" as bet;een the parties, but re<uire" respon"ents to return the a)ount of PhP 1-,--- to petitioners# %lso assaile" is the March :-, ,--= C% Resolution 2:3 "en4in* petitioners> )otion for reconsi"eration# T ! #a$%" Petitioner Ra)on 'e<uin, husban" of petitioner Vir*inia 'e<uin, is the brother of respon"ent Salo)e '# Vi?con"e an" brother in la; of respon"ent Ra4)un"o Vi?con"e# @ith this consan*uine an" affinit4 relation, the instant case "e!elope" as follo;s$ In +..1, petitioners, resi"ents of Dia)on" Court, Ari/ton Ville Sub"i!ision, Ca)arin, Caloocan Cit4, bou*ht the subBect lot consistin* of +-,++1 s<uare )eters fro) one Carlito "e 'eon 6"e 'eon7# The sale ;as ne*otiate" b4 respon"ent Ra4)un"o Vi?con"e# The subBect lot is locate" near the Sto# Rosario to Ma*sa4sa4 roa" in %lia*a, Nue!a EciBa# %"Bacent thereto an" &o$a%!d 'n (!%)!!n % ! "*(+!$% &o% and % ! ,oad '" a d,'!d *- $ana& 6or sapang patay in the nati!e lan*ua*e7# In +..=, respon"ents represente" to petitioners that the4 ha" also bou*ht fro) Carlito "e 'eon a +,-+, s<uare )eter lot a"Bacent to petitioners> propert4 an" built a house thereon# %s later confir)e" b4 "e 'eon, ho;e!er, the +,-+, s<uare )eter lot clai)e" b4 respon"ents is part of the +-,++1 s<uare )eter lot petitioners bou*ht fro) hi)# Petitioners belie!e" the stor4 of respon"ents, since it ;as Ra4)un"o ;ho ne*otiate" the sale of their lot ;ith "e 'eon# @ith the consent of respon"ents, petitioners then constructe" their house on the 1-- s<uare )eter half portion of the

!ersus

SPS. RAYMUNDO VIZCONDE and SALOME LEQUIN VIZCONDE, Respon"ents# /

+,-+, s<uare )eter lot clai)e" b4 respon"ents, as this ;as near the roa"# Respon"ents> resi"ence is on the re)ainin* 1+, s<uare )eters of the lot# 8i!en this situation ;here petitioners> house stoo" on a portion of the lot alle*e"l4 o;ne" b4 respon"ents, petitioners consulte" a la;4er, ;ho a"!ise" the) that the +,-+, s<uare )eter lot be se*re*ate" fro) the subBect lot ;hose title the4 o;n an" to )aCe it appear that the4 are sellin* to respon"ents 1+, s<uare )eters thereof# This sale ;as e)bo"ie" in the Debruar4 +,, ,---Kasulatan ;here it ;as )a"e to appear that respon"ents pai" PhP +1,--- for the purchase of the 1+, s<uare )eter portion of the subBect lot# In realit4, the consi"eration of PhP +1,--- ;as not pai" to petitioners# %ctuall4, it ;as petitioners ;ho pai" respon"ents PhP 1-,--- for the 1-- s<uare )eter portion ;here petitioners built their house on, belie!in* respon"ents> representation that the latter o;n the +,-+, s<uare )eter lot# In (ul4 ,---, petitioners trie" to "e!elop the "rie" up canal locate" bet;een their 1-s<uare )eter lot an" the public roa"# Respon"ents obBecte", clai)in* o;nership of sai" "rie" up canal or sapang patay# This pro)pte" petitioners to looC into the o;nership of the "rie" up canal an" the +,-+, s<uare )eter lot clai)e" b4 respon"ents# Carlito "e 'eon tol" petitioners that ;hat he ha" sol" to respon"ents ;as the "rie" up canal or sapang patay an" that the +,-+, s<uare )eter lot clai)e" b4 respon"ents reall4 belon*s to petitioners# Thus, on (ul4 +:, ,--+, petitioners file" a Co)plaint 203 for Declaration of Nullity of Contract, Sum of Money and Damagesa*ainst respon"ents ;ith the Re*ional Trial Court 6RTC7, Aranch ,9 in Cabanatuan Cit4, pra4in*, a)on* others, for the "eclaration of the Debruar4 +,, ,--- Kasulatan as null an" !oi" ab initio, the return of PhP 1-,--- the4 pai" to respon"ents, an" !arious "a)a*es# The case ;as "ocCete" as Ci!il Case No# 0-5:# T ! R*&'n. o/ % ! RTC On (ul4 1, ,--0, after "ue trial on the )erits ;ith petitioners presentin* three ;itnesses an" respon"ents onl4 one ;itness, the trial court ren"ere" a Decision 213 in fa!or of petitioners# The "ecretal portion rea"s$ @HEREDORE, !ie;e" fro) the fore*oin*, Bu"*)ent is hereb4 ren"ere" in fa!or of the plaintiffs an" a*ainst the "efen"ants as follo;s$ +# ,# Declarin* the E%SU'%T%N N8 TU'UF%N8 "ate" Debruar4 +,, ,--- as NU'' an" VOIDG an" Or"erin* the "efen"ants$ 6a7 to return to the plaintiffs the a)ount of DIDTF THOUS%ND PESOS ;hich the4 ha!e pai" in the si)ulate" "ee" of sale plus an interest of +,H per annu) to co))ence fro) the "ate of the filin* of this caseG 6b7 To pa4 the plaintiffs )oral "a)a*es in the a)ount of Php1-,---#--G 6c7 To pa4 e/e)plar4 "a)a*es of Php1-,---#--G AI'IH%N

6"7 To pa4 attorne4>s fees in the a)ount of Php+-,---#--G an" 6e7 SO ORDERED#253 The RTC foun" the Kasulatan alle*e"l4 con!e4in* 1+, s<uare )eters to respon"ents to be null an" !oi" "ue to$ 6+7 the !itiate" consent of petitioners in the e/ecution of the si)ulate" contract of saleG an" 6,7 lacC of consi"eration, since it ;as sho;n that ;hile petitioners ;ere ostensibl4 con!e4in* to respon"ents 1+, s<uare )eters of their propert4, 4et the consi"eration of PhP +1,--;as not pai" to the) an", in fact, the4 ;ere the ones ;ho pai" respon"ents PhP 1-,---# The RTC hel" that respon"ents ;ere *uilt4 of frau"ulent )isrepresentation# %**rie!e", respon"ents appeale" the abo!e RTC Decision to the C%# T ! R*&'n. o/ % ! CA The appellate court !ie;e" the case other;ise# On (ul4 ,-, ,--5, it ren"ere" the assaile" Decision *rantin* respon"ents> appeal an" "eclarin* as !ali" the Kasulatan# The fallo rea"s$ @HEREDORE, pre)ises consi"ere", the %ppeal is 8R%NTED# The Easulatan n* Ailihan* Tulu4an "ate" Debruar4 +,, ,--- is "eclare" !ali"# Ho;e!er, Spouses Ra4)un"o Vi?con"e an" Salo)e 'e<uin Vi?con"e are hereb4 or"ere" to return to the plaintiffs the a)ount of P1-,---#-- ;ithout interest# SO ORDERED#2=3 In re!ersin* an" !acatin* the RTC Decision, the C% foun" no si)ulation in the contract of sale, i#e#, Kasulatan# Rel4in* onManila Ban ing Corporation !" Sil!erio ,293 the appellate court pointe" out that an absolutel4 si)ulate" contract taCes place ;hen the parties "o not inten" at all to be boun" b4 it, an" that it is characteri?e" b4 the fact that the apparent contract is not reall4 "esire" or inten"e" to pro"uce le*al effects or in an4 ;a4 alter the Buri"ical situation of the parties# It rea" the sale contract 6Kasulatan7 as clear an" una)bi*uous, for respon"ents 6spouses Vi?con"e7 ;ere the bu4ers an" petitioners 6spouses 'e<uin7 ;ere the sellers# Such bein* the case, petitioners are, to the C%, the o;ners of the +,-+, s<uare )eter lot, an" as o;ners the4 con!e4e" the 1+, s<uare )eter portion to respon"ents# The C% !ie;e" petitioners> clai) that the4 e/ecute" the sale contract to )aCe it appear that respon"ents bou*ht the propert4 as )ere *ratuitous alle*ation# Aesi"es, the sale contract ;as "ul4 notari?e" ;ith respon"ents clai)in* the 1+, s<uare )eter portion the4 bou*ht fro) petitioners an" not the ;hole +,-+, s<uare )eter lot as alle*e" b4 petitioners# Moreo!er, the C% "is)isse" alle*ations of frau" an" )achinations a*ainst respon"ents to in"uce petitioners to e/ecute the sale contract, there bein* no e!i"ence to sho; ho; petitioners ;ere "efrau"e" an" )uch less the )achinations use" b4 respon"ents# It ratiocinate" that the alle*ation of respon"ents tellin* petitioners that the4 o;n the +,-+, s<uare )eter lot an" for ;hich petitioners sol" the) 1+, s<uare )eters thereof "oes not fall in the concept of frau"# %nent the PhP 1-,--- petitioners pai" to respon"ents for the 1-- s<uare )eter portion of the +,-+, s<uare )eter lot clai)e" b4 respon"ents, the C% rule" that the receipt spoCe for itself an", thus, re<uire" respon"ents to return the a)ount to petitioners# To pa4 the costs of suit#

On March :-, ,--=, the C% "enie" petitioners> Motion for Reconsi"eration of the abo!e "ecision throu*h the assaile" resolution# Hence, petitioners ;ent to this Court# T ! I""*!" I THE HONOR%A'E COURT OD %PPE%'S, @ITH %'' DUE RESPECT, ERRED IN NOT C'E%R'F ST%TIN8 IN THE %SS%I'ED DECISION %ND RESO'UTION THE D%CTS %ND '%@ ON @HICH THE S%ME @ERE A%SEDG II THE HONOR%A'E COURT OD %PPE%'S, @ITH %'' DUE RESPECT, ERRED IN NOT 8IVIN8 DUE CREDENCE TO THE DINDIN8S OD D%CTS OD THE TRI%' COURT %ND HO@ THE '%TTER %PPRECI%TED THE TESTIMONIES 8IVEN AF THE @ITNESSESG III THE HONOR%A'E COURT OD %PPE%'S, @ITH %'' DUE RESPECT, ERRED IN DINDIN8 TH%T THERE @%S NO DR%UD ON THE P%RT OD THE RESPONDENT VI&CONDESG IV THE HONOR%A'E COURT OD %PPE%'S, @ITH %'' DUE RESPECT, ERRED IN CONSIDERIN8 TH%T THE E%SU'%T%N N8 AI'IH%N8 TU'UF%N IS % V%'ID CONTR%CT OD S%'EG V THE HONOR%A'E COURT OD %PPE%'S, @ITH %'' DUE RESPECT, ERRED IN NOT CONSIDERIN8 TH%T THE RESPONDENTS DID NOT H%VE THE DIN%NCI%' C%P%CITF TO PURCH%SE THE SUA(ECT '%ND DROM THE PETITIONERS#2.3 T ! Co*,%0" R*&'n. The petition is )eritorious# The issues boil "o;n to t;o core <uestions$ ;hether or not the Kasulatan co!erin* the 1+, s<uare )eter lot is a !ali" contract of saleG an" ;ho is the le*al o;ner of the other 1-- s<uare )eter lot# @e fin" for petitioners# The trial court foun", inter alia, lacC of consi"eration in the contract of sale ;hile the appellate court, in re!ersin* the "ecision of the trial court, )erel4 rule" that the contract of sale is not si)ulate"# @ith the contrar4 rulin*s of the courts a #uo, the Court is i)pelle" to re!ie; the recor"s to Bu"iciousl4 resol!e the petition#

It is true that this Court is not a trier of facts, but there are reco*ni?e" e/ceptions to this *eneral rule, such as ;hen the appellate court ha" i*nore", )isun"erstoo", or )isinterprete" co*ent facts an" circu)stances ;hich, if consi"ere", ;oul" chan*e the outco)e of the caseG or ;hen its fin"in*s ;ere totall4 "e!oi" of supportG or ;hen its Bu"*)ent ;as base" on a )isapprehension of facts#2+-3 %s )a4 be note", the C%, ;ithout *oin* into "etails, rule" that the contract of sale ;as not si)ulate", as it ;as "ul4 notari?e", an" it clearl4 sho;e" petitioners as sellers, an" respon"ents as bu4ers, of the 1+, s<uare )eter lot, subBect )atter of the sale# Aut the C% )isappreciate" the e!i"ence "ul4 a""uce" "urin* the trial on the )erits# %s establishe" "urin* the trial, petitioners bou*ht the entire subBect propert4 consistin* of +-,++1 s<uare )eters fro) Carlito "e 'eon# The title of the subBect propert4 ;as "ul4 transferre" to petitioners> na)es# Respon"ents, on the other han", bou*ht the "rie" up canal consistin* of +,-+, s<uare )eters fro) "e 'eon# This "rie" up canal is a"Bacent to the subBect propert4 of petitioners an" is the lot or area bet;een the subBect propert4 an" the public roa" 6Sto# Rosario to Ma*sa4sa47# The affi"a!it or Sinumpaang Salaysay2++3 of "e 'eon attests to the fore*oin* facts# Moreo!er, "e 'eon>s testi)on4 in court confir)e" an" establishe" such facts# These ;ere neither contro!erte" nor assaile" b4 respon"ents ;ho "i" not present an4 counter!ailin* e!i"ence# Aefore this factual clarification ;as ha", respon"ents, ho;e!er, )a"e a clai) a*ainst petitioners in +..=I;hen subBect lot ;as re sur!e4e" b4 petitionersIthat respon"ents also bou*ht a +,-+, s<uare )eter lot fro) "e 'eon# Un"eniabl4, the +,-+, s<uare )eters ;as a portion of the +-,++1 s<uare )eters ;hich "e 'eon sol" to petitioners# Ob!iousl4, petitioners respecte" respon"ents> clai)Iif not, to )aintain peace an" har)onious relationsIan" se*re*ate" the clai)e" portion# @hether ba" faith or ill ;ill ;as in!ol!e" or an honest erroneous belief b4 respon"ents on their clai), the recor"s "o not sho;# The situation ;as further co)plicate" b4 the fact that both parties built their respecti!e houses on the +,-+, s<uare )eter portion clai)e" b4 respon"ents, it bein* situate" near the public roa"# To resol!e the i)passe on respon"ents> clai) o!er +,-+, s<uare )eters of petitioners> propert4 an" the latter>s house built thereon, an" to iron out their suppose" respecti!e ri*hts, petitioners consulte" a notar4 public, ;ho a"!ise" an" propose" the solution of a contract of sale ;hich both parties consente" to an" is no; the obBect of the instant action# Thus, the contract of sale ;as e/ecute" on Debruar4 +,, ,--- ;ith petitioners, bein* the title hol"ers of the subBect propert4 ;ho ;ere ostensibl4 sellin* to respon"ents 1+, s<uare )eters of the subBect propert4 ;hile at the sa)e ti)e pa4in* PhP 1-,--- to respon"ents for the other 1-- s<uare )eter portion# Dro) the abo!e consi"erations, ;e conclu"e that the appellate court>s fin"in* that there ;as no frau" or frau"ulent )achinations e)plo4e" b4 respon"ents on petitioners is bereft of factual e!i"entiar4 support# @e sustain petitioners> contention that respon"ents e)plo4e" frau" an"

)achinations to in"uce the) to enter into the contract of sale# %s such, the C%>s fin"in* of fact )ust *i!e ;a4 to the fin"in* of the trial court that the Kasulatan has to be annulle" for !itiate" consent# %nent the first )ain issue as to ;hether the Kasulatan o!er the 1+, s<uare )eter lot is !oi"able for !itiate" consent, the ans;er is in the affir)ati!e# % contract, as "efine" in the Ci!il Co"e, is a )eetin* of )in"s, ;ith respect to the other, to *i!e so)ethin* or to ren"er so)e ser!ice#2+,3 Dor a contract to be !ali", it )ust ha!e three essential ele)ents$ 6+7 consent of the contractin* partiesG 6,7 obBect certain ;hich is the subBect )atter of the contractG an" 6:7 cause of the obli*ation ;hich is establishe"# The re<uisites of consent are 6+7 it shoul" be intelli*ent or ;ith an e/act notion of the )atter to ;hich it refersG 6,7 it shoul" be freeG an" 6:7 it shoul" be spontaneous# In De Jesus !" $ntermediate %ppellate Court,2+:3 it ;as e/plaine" that intelli*ence in consent is !itiate" b4 error, free"o) b4 !iolence, inti)i"ation or un"ue influence, an" spontaneit4 b4 frau"# %rticle 6%rt#7 +::- of the Ci!il Co"e pro!i"es that ;hen consent is *i!en throu*h frau", the contract is !oi"able# Tolentino "efines frau" as Je!er4 Cin" of "eception ;hether in the for) of insi"ious )achinations, )anipulations, conceal)ents or )isrepresentations, for the purpose of lea"in* another part4 into error an" thus e/ecute a particular act#K 2+03 Drau" has a J"eter)inin* influenceK on the consent of the preBu"ice" part4, as he is )isle" b4 a false appearance of facts, thereb4 pro"ucin* error on his part in "eci"in* ;hether or not to a*ree to the offer# One for) of frau" is )isrepresentation throu*h insi"ious ;or"s or )achinations# Un"er %rt# +::9 of the Ci!il Co"e, there is frau" ;hen, throu*h insi"ious ;or"s or )achinations of one of the contractin* parties, the other is in"uce" to enter into a contract ;hich ;ithout the) he ;oul" not ha!e a*ree" to# Insi"ious ;or"s or )achinations constitutin* "eceit are those that ensnare, entrap, tricC, or )islea" the other part4 ;ho ;as in"uce" to *i!e consent ;hich he or she ;oul" not other;ise ha!e *i!en# Deceit is also present ;hen one part4, b4 )eans of concealin* or o)ittin* to state )aterial facts, ;ith intent to "ecei!e, obtains consent of the other part4 ;ithout ;hich, consent coul" not ha!e been *i!en# %rt# +::. of the Ci!il Co"e is e/plicit that failure to "isclose facts ;hen there is a "ut4 to re!eal the), as ;hen the parties are boun" b4 confi"ential relations, constitutes frau"# Dro) the factual )ilieu, it is clear that actual frau" is present in this case# The sale bet;een petitioners an" "e 'eon o!er the +-,++1 s<uare )eter lot ;as ne*otiate" b4 respon"ent Ra4)un"o Vi?con"e# %s such, Ra4)un"o ;as full4 a;are that ;hat petitioners bou*ht ;as the entire +-,++1 s<uare )eters an" that the +,-+, s<uare )eter lot ;hich he clai)s he also bou*ht fro) "e 'eon actuall4 for)s part of petitioners> lot# It cannot be "enie" b4 respon"ents that the lot ;hich the4 actuall4 bou*ht, base" on the unrebutte" testi)on4 an" state)ent of "e 'eon, is the "rie" up canal ;hich is a"Bacent to petitioners> +-,++1 s<uare )eter lot# Consi"erin* these factors, it is clear as "a4 that there ;as "eception on the part of Ra4)un"o ;hen he )isrepresente"

to petitioners that the +,-+, s<uare )eter lot he bou*ht fro) "e 'eon is a separate an" "istinct lot fro) the +-,++1 s<uare )eter lot the petitioners bou*ht fro) "e 'eon# Ra4)un"o conceale" such )aterial fact fro) petitioners, ;ho ;ere con!ince" to si*n the sale instru)ent in <uestion an", ;orse, e!en pa4 PhP 1-,--- for the 1-- s<uare )eter lot ;hich petitioners actuall4 o;n in the first place# There ;as !itiate" consent on the part of petitioners# There ;as frau" in the e/ecution of the contract use" on petitioners ;hich affecte" their consent# Petitioners> reliance an" belief on the ;ron*ful clai) b4 respon"ents operate" as a conceal)ent of a )aterial fact in their a*reein* to an" in rea"il4 e/ecutin* the contract of sale, as a"!ise" an" propose" b4 a notar4 public# Aelie!in* that Carlito "e 'eon in"ee" sol" a +,-+, s<uare )eter portion of the subBect propert4 to respon"ents, petitioners si*ne" the contract of sale base" on respon"ents> representations# Ha" petitioners Cno;n, as the4 e!entuall4 ;oul" so)eti)e in late ,--- or earl4 ,--+ ;hen the4 )a"e the necessar4 in<uir4 fro) Carlito "e 'eon, the4 ;oul" not ha!e entere" or si*ne" the contract of sale, )uch less pa4 PhP 1-,--- for a portion of the subBect lot ;hich the4 full4 o;n# Thus, petitioners> consent ;as !itiate" b4 frau" or frau"ulent )achinations of Ra4)un"o# In the e4es of the la;, petitioners are the ri*htful an" le*al o;ners of the subBect 1+, s<uare )eter lot anchore" on their purchase thereof fro) "e 'eon# This ri*ht )ust be uphel" an" protecte"# On the issue of lacC of consi"eration, the contract of sale or Kasulatan states that respon"ents pai" petitioners PhP +1,--- for the 1+, s<uare )eter portion, thus$ Na Ca)in* )a*asa;an* Ra)on 'e<uin at Vir*inia R# 'e<uin, na;an* )a4 sapat na *ulan*, pilipino at naCatira sa . Dia)on" Court, Ari/ton Ville Sub"i!ision, Ca)arin, EalooCan Cit4, a&an.1a&an. "a a&a.an. LA2INGLIMANG LI2ONG PISO 3P 14,000.005 "a&a-'n. -'&'-'no na('na6a,an "a a7'n n. (*on. 8a"'6a an. &oo( na7'n n. 7a.a"a)an. Ra67*ndo V'9$ond! a% Sa&o7! L!:*'n , na;an* )a4 sapat na *ulan*, pilipino at naCatira sa Sto# Rosario, %lia*a, Nue!a EciBa, a4 a)in na)an n*a4on inilipat, ibini*a4 at ipina*bili n* bilihan* tulu4an sa naulit na )a*asa;an* Ra4)un"o Vi?con"e at Salo)e 'e<uin, at sa Canilan* )*a ta*apa*)ana an* / / /#2+13 On its face, the abo!e contract of sale appears to be supporte" b4 a !aluable consi"eration# @e, ho;e!er, a*ree ;ith the trial court>s fin"in* that this is a si)ulate" sale an" unsupporte" b4 an4 consi"eration, for respon"ents ne!er pai" the PhP +1,--- purporte" purchase price# Section . of Rule +:- of the Re!ise" Rules on E!i"ence *i!es both the *eneral rule an" e/ception as re*ar"s ;ritten a*ree)ents, thus$ SEC# .# &!idence of 'ritten agreements #I@hen the ter)s of an a*ree)ent ha!e been re"uce" to ;ritin*, it is consi"ere" as containin* all the ter)s a*ree" upon an" there can be, bet;een the parties an" their successors in interest, no e!i"ence of such ter)s other than the contents of the ;ritten a*ree)ent# Ho;e!er, a part4 )a4 present e!i"ence to )o"if4, e/plain or a"" to the ter)s of the ;ritten a*ree)ent if he puts in issue in his plea"in*$ 6a7 %n intrinsic a)bi*uit4, )istaCe or i)perfection in ;ritten a*ree)entG

6b7 T ! /a'&*,! o/ % ! ),'%%!n a.,!!7!n% %o !;-,!"" % ! %,*! 'n%!n% and a.,!!7!n% o/ % ! -a,%'!" % !,!%oG 6c7 The !ali"it4 of the ;ritten a*ree)entG or 6"7 The e/istence of other ter)s a*ree" to b4 the parties or their successors in interest after the e/ecution of the ;ritten a*ree)ent# The ter) Ja*ree)entK inclu"es ;ills# The secon" e/ception pro!i"e" for the acceptance of parol e!i"ence applies to the instant case# 'acC of consi"eration ;as pro!e" b4 petitioners> e!i"ence aliunde sho;in* that the Kasulatan "i" not e/press the true intent an" a*ree)ent of the parties# %s e/plaine" abo!e, sai" sale contract ;as frau"ulentl4 entere" into throu*h the )isrepresentations of respon"ents causin* petitioners> !itiate" consent# Moreo!er, the e!i"ence of petitioners ;as uncontro!erte" as respon"ents faile" to a""uce an4 proof that the4 in"ee" pai" PhP +1,--- to petitioners# In"ee", ha!in* asserte" their purchase of the 1+, s<uare )eter portion of petitioners base" on the Kasulatan, it behoo!es upon respon"ents to pro!e such affir)ati!e "efense of purchase# Unless the part4 assertin* the affir)ati!e "efense of an issue sustains the bur"en of proof, his or her cause ;ill not succee"# If he or she fails to establish the facts of ;hich the )atter asserte" is pre"icate", the co)plainant is entitle" to a !er"ict or "ecision in his or her fa!or#2+53 In the instant case, the recor" is bereft of an4 proof of pa4)ent b4 respon"ents an", thus, their affir)ati!e "efense of the purporte" purchase of the 1+, s<uare )eter portion fails# Thus, the clear fin"in* of the trial court$ ,# / / / 2I3t ;as establishe" b4 the plaintiffs 2petitioners3 that the4 ;ere the ones ;ho pai" the "efen"ants the a)ount of DIDTF THOUS%ND PESOS 6Php1-,---#--7 an" e/ecute a "ee" of sale also in fa!or of the "efen"ants# In a si)ple lo*ic, ;here can 4ou fin" a contract that a VENDOR ;ill con!e4 his real propert4 an" at the sa)e ti)e pa4 the VENDEE a certain a)ount of )one4 ;ithout recei!in* an4thin* in returnL2+=3 There can be no "oubt that the contract of sale or Kasulatan lacCe" the essential ele)ent of consi"eration# It is a ;ell entrenche" rule that ;here the "ee" of sale states that the purchase price has been pai" but in fact has ne!er been pai", the "ee" of sale is null an" !oi" ab initio for lacC of consi"eration#2+93 Moreo!er, %rt# +0=+ of the Ci!il Co"e, ;hich pro!i"es that Jif the price is si)ulate", the sale is !oi",K also applies to the instant case, since the price purporte"l4 pai" as in"icate" in the contract of sale ;as si)ulate" for no pa4)ent ;as actuall4 )a"e# 2+.3 Consi"eration an" consent are essential ele)ents in a contract of sale# @here a part4>s consent to a contract of sale is !itiate" or ;here there is lacC of consi"eration "ue to a si)ulate" price, the contract is null an" !oi" ab initio# %nent the secon" issue, the PhP 1-,--- pai" b4 petitioners to respon"ents as consi"eration for the transfer of the 1-- s<uare )eter lot to petitioners )ust be restore" to the latter# Other;ise, an unBust enrich)ent situation ensues# The facts clearl4 sho; that the 1-- s<uare )eter lot is le*all4 o;ne" b4 petitioners as sho;n b4 the testi)on4 of "e 'eonG therefore, the4 ha!e no le*al obli*ation

to pa4 PhP 1-,--- therefor# %rt# ,, of the Ci!il Co"e pro!i"es that Je!er4 person ;ho throu*h an act or perfor)ance b4 another, or an4 other )eans, ac<uires or co)es into possession of so)ethin* at the e/pense of the latter ;ithout Bust or le*al *roun", shall return the sa)e to hi)#K Consi"erin* that the 1+, s<uare )eter lot on ;hich respon"ents> house is locate" is clearl4 o;ne" b4 petitioners, then the Court "eclares petitioners> le*al o;nership o!er sai" 1+, s<uare )eter lot# The a)ount of PhP 1-,--- shoul" onl4 earn interest at the le*al rate of 5H per annu) fro) the "ate of filin* of co)plaint up to finalit4 of Bu"*)ent an" not +,H since such pa4)ent is neither a loan nor a forbearance of cre"it#2,-3 %fter finalit4 of "ecision, the a)ount of PhP 1-,--- shall earn interest of +,H per annu) until full4 pai"# The a;ar" of )oral an" e/e)plar4 "a)a*es )ust be reinstate" in !ie; of the frau" or frau"ulent )achinations e)plo4e" b4 respon"ents on petitioners# The *rant of "a)a*es in the concept of attorne4>s fees in the a)ount of PhP +-,--- )ust be )aintaine" consi"erin* that petitioners ha!e to incur liti*ation e/penses to protect their interest in confor)it4 to %rt# ,,-96,7 2,+3 of the Ci!il Co"e# Consi"erin* that respon"ents ha!e built their house o!er the 1+, s<uare )eter portion le*all4 o;ne" b4 petitioners, ;e lea!e it to the latter ;hat course of action the4 inten" to pursue in relation thereto# Such is not an issue in this petition# <=ERE#ORE, the instant petition is hereb4 GRANTED# %ccor"in*l4, the C% Decision "ate" (ul4 ,-, ,--5 an" Resolution "ate" March :-, ,--= in C% 8#R# CV No# 9:1.1 are hereb4 REVERSED an" SET ASIDE# The Decision of the RTC, Aranch ,9 in Cabanatuan Cit4 in Ci!il Case No# 0-5: is REINSTATED ;ith the MODI#ICATION that the a)ount of fift4 thousan" pesos 6PhP 1-,---7 ;hich respon"ents )ust return to petitioners shall earn an interest of 5H per annu) fro) the "ate of filin* of the co)plaint up to the finalit4 of this Decision, an" +,H fro) the "ate of finalit4 of this Decision until full4 pai"# No pronounce)ent as to costs# SO ORDERED.