11/27/2020 G.R. No. L-11415 May 25, 1959 - MANUEL BUASON, ET AL. v.

AL. v. MARIANO PANUYAS<br /><br />105 Phil 795 : May 1959 - Philipppine Supreme…

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Philippine Supreme Court Jurisprudence > Year 1959 > May 1959 Decisions > G.R.
No. L-11415 May 25, 1959 - MANUEL BUASON, ET AL. v. MARIANO PANUYAS

105 Phil 795:

EN BANC

[G.R. No. L-11415. May 25, 1959.]

MANUEL BUASON and LOLITA M. REYES, Plaintiffs-Appellants, v. MARIANO

PANUYAS, Defendant-Appellee.

Garcia & Jacinto, for Appellants.

Servando Cleto for Appellee.

SYLLABUS

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11/27/2020 G.R. No. L-11415 May 25, 1959 - MANUEL BUASON, ET AL. v. MARIANO PANUYAS<br /><br />105 Phil 795 : May 1959 - Philipppine Supreme…
1. SALES; DOUBLE SALE OF LAND REGISTERED UNDER ACT 496; BETTER RIGHT IN
FAVOR OF REGISTERED SALE. — If it does not appear that the second purchasers
had actual knowledge of the previous sale to the appellants, they had a right to rely
on the face of the certificate of title of the registered owners and of the authority
conferred by them upon the agent with a power of attorney recorded on the back of
the certificate. In case of double sale of land registered under the Land Registration
Act, he who records the sale in the Registry of Deeds has a better right than he who
did not.

2. AGENCY; ACTS DONE BY AN AGENT AFTER DEATH OF PRINCIPAL WITHOUT HIS

KNOWLEDGE OF SUCH DEATH. — The contention that as the death of the principal
ended the authority of the agent, the sale made by the latter of the land in question
after the death of the principal is null and void, is untenable, it not having been
shown that the agent knew of his principal’s demise, and for that reason the sale
made by the agent is valid and effective with respect to third persons who have
contracted wiht him in good faith. (Art. 1723, Old Civil Code, 1931, New Civil Code).

DEC ISION

PADILLA, J.:

This is an appeal from a judgment of the Court of First Instance of Nueva Ecija dismissing
an action brought by the spouses Manuel Buason and Lolita M. Reyes for annulment of a
deed of sale in favor of the defendant, cancellation of transfer certificate of title No. 8419
issued in the name of the defendant and his wife, declaration that the sale in their favor is
valid, recovery of possession of te parcel of land described in the complaint from the
defendant, damages, attorney’s fees and costs. (Civil No. 2144.)

In their lifetime the spouses Buenaventura Dayao and Eugenia Vega acquired by
homestead patent a parcel of land situated at barrio Gabaldon, municipality of Munoz,
province of Nueva Ecija, containing an area of 14.8413 hectares covered by original
certificate of title No.1187 (Exhibit C). On 29 October 1930 they executed a power of
attorney authorizing Eustaquio Bayuga to engage the sevices of an attorney to prosecute
their case against Leonardo Gambito for annulment of a contract of sale of the parcel of
land (civil No. 5787 of the same court) and after the termination of the case in their favor
to sell it, and from the proceeds of the sale to deduct whatever expenses he had incurred
in the litigation (Exhibit B). On 14 March 1934 Buenaventura Dayao died leaving his wife
Eugenia Vega and children Pablo, Teodoro, Fortunata and Juliana, all surnamed Dayao. On
21 March 1939 his four children executed a deed of sale conveying 12.8413 hectares of the
parcel of land to the appellants, the spouses Manuel Buason and Lolita M. Reyes (Exhibit
A). Their mother Eugenia Vega affixed her thumbmark to the deed of sale as witness
(Exhibit A). The appellants took possession of the parcel of land through their tenants in
1939. On 18 July 1944 Eustaquio Bayuga sold 8 hectares of the same parcel of land to the
spouses Mariano Panuyas (appellee herein) and Sotera B. Cruz (Exhibit D). Eustaquio
Bayuga died on 25 March 1946 and Eugenia Vega in 1954.

The appellant and the appellee calim ownership to the same parcil of land. In their complaint
the appellants prayed that the appellee be ordered to deliver possession of the part of the
parcel of land held by him; that the deed of sale of that part of the parcel of land held by
the appellee executed by Eustaquio Bayuga in his favor and of his wife (Exhibit D) be
declared null and void and that transfer certificate of title No. 8419 issued in their name be
cancelled; that the deed of sale of the parcel of land executed by the children and heirs of
Buenaventura Dayao in their fabor (Exhibit A) be declared valid; that the appellee be

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11/27/2020 G.R. No. L-11415 May 25, 1959 - MANUEL BUASON, ET AL. v. MARIANO PANUYAS<br /><br />105 Phil 795 : May 1959 - Philipppine Supreme…
ordered to pay them damages and attorney’s fees in the sum of P9,600; and that he be
ordered to pay the costs of the suit. The appellee’s affirmative defenses are that he and
his wife were buyer in good faith and for valuable consideration; that appellants’ causes of
action are barred by the statute of limitations; that the complaint states no cause of
action; that the claim on which their action is based is unenforceable under the statute of
frauds; and that the appellants are guilty of laches. By way of counter-claim, he prayed
that for bringing a clearly unfounded suit against him which depreciated the value of the
land and injured his good reputation, the appellants be ordered to pay him the sums of
P5,000 as actual damages and P10,000 as moral damages.

After trial on 20 August 1956 the Court rendered judgment holding that the appellants’
action is barred by the statute of limitation and dismissing their complaint. Their motion for
reconsideration filed on 23 August 1956 was denied on 28 August 1956. Hence this appeal
upon questions of law.

It appears that the appellants did not register the sale of 12.8413 hectares of the parcel of
land in question executed in their favor by the Dayao children on 21 March 1939 after
death of their father Buenaventura Dayao. On the other hand, the power of attorney
executed by Buenaventura Dayao on 29 October 1930 authorizing Eustaquio Bayuga to
sell the parcel of land (Exhibit B) was annotated or inscribed on the back of original
certificate of title No. 1187 (Exhibit C) as Entry No. 16836/H-1187, and the sale executed
by Eustaquio Bayuga in favor of the appellee Mariano Panuyas and his wife Sotera B. Cruz
under the aforesaid power of attorney was annotated or incribed on the back of the same
original certificate of title (Exhibit C) as Entry No. 778/H-1187. It does not appear that the
appellee and his wife had actual knowledge of the previous sale. In the absence of such
knowledge, thay had a right to rely on the face of the cetificate of title of the registered
owners and of the authority conferred by them upon the agent also recorded on the back
of the certificate of title. As this is a case of double sale of land registered under the Land
Registration Act, he who recorded the sale in the Registry of Deeds has a better right than
he who did not. 1

As to the appellants’ contention that, as the death of the principal on 14 March 1934
ended the authority of the agent, 2 the sale of 8 hectares of the parcel of land by the
agent to the appellee Mariano Panuyas and his wife Sotera B. Cruz was null and void,
suffice it to state that it has not been shown that the agent knew of his principal’s demise,
and for that reason article 1738, old Civil Code or 1931, new Civil Code, which provides: c h a n ro b 1 e s v irtu a l1 a wlib ra ry

Anything done by the agent, without knowledge of the death of the principal or of any
other cause which extinguishes the agence, is valid and shall be fully effective with respect
to third persons who may have contracted with him in good faith.

is the law applicable to the point raised by the appellants.

The judgment appealed from is affirmed, with costs against the appellants.

Paras, C.J., Bengzon, Montemayour, Reyes, A., Bautista Angelo, Labrador, Concepcion and
Endencia, JJ., concur.

Endnotes:

1. Article 1473, old civil code; 1544 new civil code.

2. Article 1732, old civil code; 1919, new code.

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