DIGNOS v. CA a.

nowhere in the contract in question is a proviso or stipulation to the

Contract of Sale | Feb 29, 1988 | J. Bidin effect that title to the property sold is reserved in the vendor until full
payment of the purchase price
Nature of Case: Petition for Review on Certiorari
b. nor is there a stipulation giving the vendor the right to unilaterally
Digest maker: Jeu Francisco
rescind the contract the moment the vendee fails to pay within a fixed
SUMMARY: Spouses Dignos sold their land to Atilano Jabil. They later on sell the
same parcel of land to Spouses Cabigas. They claim that the contract with Jabil period
was merely a contract to sell subject to 2 suspensive conditions. SC ruled in favor
of Jabil, stating that the contract with Jabil was a deed of absolute sale, and not IN THIS CASE: The contract in question is a Deed of Sale, with the ff
merely a contract to sell. conditions:
DOCTRINE: A deed of sale is absolute in nature although denominated as a a. Jabil to pay 12 k as advance payment;
"Deed of Conditional Sale” where nowhere in the contract is a stipulation that the b. Jabil to assume balance of 12k Loan from the First Insular Bank of Cebu;
property sold is reserved in the vendor until full payment of the purchase price, c. Jabil to pay the said spouses the balance of 4k on or before Sep 15, 1965;
nor is there a stipulation giving the vendor the right to unilaterally rescind the d. Spouses agree to defend Jabil from other claims on the said property;
contract the moment the vendee fails to pay within a fixed period. e. Spouses agree to sign a final deed of absolute sale in favor of Jabil over
the above-mentioned property upon the payment of the balance of 4k
FACTS:
1. June 7, 1965: Spouses Dignos sold their land in Lapu-Lapu City to Atilano Jabil
APPLICATION: all the elements of a valid contract of sale under Article
(Respondent) for P28,000
1458 of the Civil Code, are present
 payable in two installments with assumption of indebtedness with the First
a. consent or meeting of the minds;
Insular Bank of Cebu (12,000) –paid and acknowledged by the vendors in
b. determinate subject matter; and
the deed of sale executed in favor of Dignos
c. price certain in money or its equivalent.
 and the next installment in the sum of P4,000 to be paid on or before Sept 15,
1965.
RULE: Art. 1477: "The ownership of the thing sold shall be transferred to the
2. Months later (Nov 25), Spouses Dignos sold same land to Spouses Cabigas for
vendee upon actual or constructive delivery thereof.”
P35,000.
a. This was applied in Froilan v. Pan Oriental Shipping Co., et al
 Deed of absolute sale was executed which was registered in the Office of the
b. There, SC held that in the absence of stipulation to the contrary, the
Register of Deeds.
ownership of the thing sold passes to the vendee upon actual or
3. Spouses Dignos refused to accept from Jabil balance of purchase price, and Jabil
constructive delivery thereof.
found out about the second sale so he brought suit.
 Spouses Dignos Claim: the subject contract with Jabil is merely a contract to
APPLICATION: While it may be conceded that there was no constructive
sell that is subject to 2 suspensive conditions (payment of balance and
delivery of the land sold in the case at bar, as subject Deed of Sale is a
assumption of mortgage) so that there is no actual sale until full payment
private instrument, it is beyond question that there was actual delivery
made.
thereof.
4. TC and CA: ruled in favor of Jabil and declared the deed of sale executed in favor
a. Note: Spouses Dignos delivered the possession of the land in question
of Spouses Cabigas to be null and void ab initio and the deed of sale executed to Jabil
to Jabil as early as March 27, 1965  So Jabil constructed thereon
not rescinded.
Sally’s Beach Resort also known as Jabil's Beach Resort in March, 1965;
b. The act of the Spouses Dignos of delivering the possession of the land
ISSUE/S & RATIO:
to the vendees, contemporaneous with the contract, clearly show that
WON subject contract is a deed of absolute sale or a contract to sell? It was a deed of
absolute sale. an absolute deed of sale was intended by the parties and not a contract
RULE: A deed of sale is absolute in nature although denominated as a "Deed of to sell.
Conditional Sale” where:
 CONCLUSION: Sale of the property by the vendors to a second vendee is
null and void as at the time of sale they were no longer owners of the
property.

RULING: WHEREFORE, the petition filed is hereby Dismissed for lack of merit and
the assailed decision of the Court of Appeals is Affirmed in toto. SO ORDERED.