Penalosa vs Santos

 363 SCRA 545, GR No. 133749 August 23, 2001

Facts:

Penalosa entered into 2 contracts of sale with Santos. The contract is a conditional contract of sale. According to the stipulations of the contract, Penalosa would have to evict the illegal settlers in the lot afterwhich, the sale will be formalised. However, Penalosa failed to pay the purchase price. Santos contends that the contracts are absolutely simulated and therefore, void.



Issue:
Whether or not the contract of sale was absolutely simulated for want of consideration



Ruling;
No, the contract of sale was not simulated. The contracts were perfected and the entire requirement for the perfection of a contract of sale were satisfied. The meeting of the minds of Santos and Penalosa perfected the contract despite the failure of Penalosa to pay the purchase price.