Ting Ho vs Teng Gui

 GR No. 130115 July 16, 2008

Facts:

Felix Ting Ho, Jr., Merla Ting Ho Braden, Juana Ting Ho and Lydia Ting Ho Belenzo against their brother, respondent Vicente Teng Gui.   The controversy revolves around a parcel of land, and the improvements which should form part of the estate of their deceased father, Felix Ting Ho, and should be partitioned equally among each of the siblings. Petitioners alleged that their father Felix Ting Ho died intestate on June 26, 1970, and left upon his death an estate. According to petitioners, the said lot and properties were titled and tax declared under trust in the name of respondent Vicente Teng Gui for the benefit of the deceased Felix Ting Ho who, being a Chinese citizen, was then disqualified to own public lands in thePhilippines; and that upon the death of Felix Ting Ho, the respondent took possession of the same for his own exclusive use and benefit to their exclusion and prejudice.



Issue:
Whether or not the sale was void



Ruling:
No, the sale was not void. Article 1471 of the Civil Code has provided that if the price is simulated, the sale is void, but the act may be shown to have been in reality a donatin, or some other act or contract. The sale in this case, was however valid because the sale was in fact a donation. The law requires positive proof of the simulation of the price of the sale. But since the finding was based on a mere assumption, the price has not been proven to be a simulation.