House International Vs IAC

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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.

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