Babao V Perez - G.R. No. L-8334 - Case Digest

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SUBJECT: Obligations and Contracts

TOPIC: Statute of Frauds

Babao v Perez
G.R. No. L-8334, December 28, 1957

GENERAL RULE OF LAW/DOCTRINE

FACTS

Facts:

Santiago Babao married the niece of Celestina Perez. 1924, Santi and Celestina allegedly had a verbal agreement
where Santi was bound to improve the land of Celestina by leveling, clearing, planting fruits and other crops; that
he will act as the administrator of the land; that all expenses for labor and materials will be at his cost, in
consideration of which Celestina in turn bound herself to convey to Santi or his wife ½ of the land, with all the
improvements after the death of Celestina.

But, shortly before Celestina’s death, she sold the land to another party. Thus, Santiago filed this complaint alleging
the sale of the land as fraudulent and fictitious and prays to recover the ½ of the land or the expenses he incurred
in improving the land.

ISSUES AND RULINGS

Whether or not the verbal agreement falls within the Stature of Frauds.

Contracts which by their terms are not to be performed within one year, may be taken out of the statute through
performance by one party thereto. All that is required in such case is complete performance within the year by one
party, however many tears may have to elapse before the agreement is performed by the other party. But nothing
less than full performance by one party will suffice, and it has been held that, if anything remains to be done after
the expiration of the year besides the mere payment of money, the statute will apply." 1 (Emphasis supplied). It is
not therefore correct to state that Santiago Babao has fully complied with his part within the year from the alleged
contract in question.

Having reached the conclusion that all the parol evidence of appellee was submitted in violation of the Statute of
Frauds, or of the rule which prohibits testimony against deceased persons, we find unnecessary to discuss the
other issues raised in appellants' brief.

The case is dismissed, with costs against appellee.

RELEVANT LAWS APPLICABLE

Section 21 of Rule 123 of our Rules of Court, is now found in Article 1403 of the new Civil Code, which provides, in
so far as pertinent to this case, as follows:

In the following cases an agreement hereafter made shall be enforceable by action unless the same, or some note
or memorandum thereof, be in writing, and subscribed by the party charged or by his agent, evidence therefore, of
the agreement cannot be received without the writing, or secondary evidence of its contents;

(a) An agreement that by its terms is not to be performed within a year from the making thereof.
xxx xxx xxx

(e) An agreement . . . for the sale of real property or of an interest therein.

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