The House International Building Tenants Association filed a case to annul the deed of conditional sale of the building they lived in. The land was previously owned by an attorney who mortgaged it to GSIS due to loan default, and GSIS foreclosed and sold the building to Centertown Marketing through a conditional sale contract without informing tenants. The court ruled that the Tenants Association did not have standing to file for annulment because they were not parties to the original sale contract between the landowner and GSIS, nor the subsequent conditional sale contract between GSIS and Centertown Marketing. Only parties directly involved in a contract have legal grounds to challenge its validity.
The House International Building Tenants Association filed a case to annul the deed of conditional sale of the building they lived in. The land was previously owned by an attorney who mortgaged it to GSIS due to loan default, and GSIS foreclosed and sold the building to Centertown Marketing through a conditional sale contract without informing tenants. The court ruled that the Tenants Association did not have standing to file for annulment because they were not parties to the original sale contract between the landowner and GSIS, nor the subsequent conditional sale contract between GSIS and Centertown Marketing. Only parties directly involved in a contract have legal grounds to challenge its validity.
The House International Building Tenants Association filed a case to annul the deed of conditional sale of the building they lived in. The land was previously owned by an attorney who mortgaged it to GSIS due to loan default, and GSIS foreclosed and sold the building to Centertown Marketing through a conditional sale contract without informing tenants. The court ruled that the Tenants Association did not have standing to file for annulment because they were not parties to the original sale contract between the landowner and GSIS, nor the subsequent conditional sale contract between GSIS and Centertown Marketing. Only parties directly involved in a contract have legal grounds to challenge its validity.
The House International Building Tenants Association filed a case to annul the deed of conditional sale of the building they lived in. The land was previously owned by an attorney who mortgaged it to GSIS due to loan default, and GSIS foreclosed and sold the building to Centertown Marketing through a conditional sale contract without informing tenants. The court ruled that the Tenants Association did not have standing to file for annulment because they were not parties to the original sale contract between the landowner and GSIS, nor the subsequent conditional sale contract between GSIS and Centertown Marketing. Only parties directly involved in a contract have legal grounds to challenge its validity.
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G.R. No.
75287 June 30, 1987
HOUSE INTERNATIONAL BUILDING TENANTS ASSOCIATION, INC., petitionerplaintiff, vs. INTERMEDIATE APPELLATE COURT, CENTERTOWN MARKETING CORP., MANILA TOWERS DEVELOPMENT CORP., AND THE GOVERNMENT SERVICE INSURANCE SYSTEM, respondents-defendants.
Topic: Kind of Contracts as to Validity Void Contracts
Facts: The House International is a non stock non profit corporation whose directors and members are heads of the families of the Building in 777 Ongpin Street. The land was formerly owned by Atty. Ang who mortgaged it to the GSIS to be able to secure payment of a loan. The mortgage has been forclosed and the right of redemption over the property has expired; resulting to the selling of the said building to the Centertown Marketing through a deed of conditional sale, without informing the tenants of the building. The said Company was not authorised to engage in real estate, so it resulted for it to corporate a sister company for them to be able to engage in real estate business. The House Association filed for the annulment of the deed of conditional sale. Issue: Whether or not the House International Building Tenants Association is a proper party to file a case for the annulment of conditional sale Held: No, the House International Building Tenants Association is a proper party to file a case for the annulment of conditional sale. Article 1397 of the Civil Code has provided that The action for the annulment of contracts may be instituted by all who are thereby obliged principally or subsidiarily. The Association is not a party nor a privy to the Deed of conditional sale and therefore, it cannot assail the validity of the said contracts.