Rudolf Lietz, Inc. vs. Court of Appeals, G.R. No. 122463 (Case Digest)

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Rudolf Lietz, Inc. vs. Court of Appeals | G.R. No.

122463 | December 19, 2005

FACTS:
Respondent Agapito Buriol entered into a lease agreement with Flavia Turatello and respondents Tiziana
Turatello and Paola Sani involving one hectare of Buriol’s property. The lessees took possession of the
land after paying Buriol a down payment of P10,000.00. Three months later, Buriol sold to petitioner
Rudolf Lietz, Inc. the same parcel of land for the amount of P30,000.00. The Deed of Absolute Sale
described the said land consisting of five hectares, more or less. Petitioner discovered that Buriol owned
only four hectares and only three hectares were actually delivered to the petitioner since one hectare was
covered by lease. Petitioner instituted a complaint for Annulment of Lease with Recovery of Possession
with Injunction and Damages against respondents and Flavia Turatello before the RTC. RTC dismissed
both petitioner's complaint and respondents’ counterclaim for damages. The Court of Appeals (CA)
affirmed the dismissal of the petitioner's complaint and awarded respondents Turatello and Sani damages
and attorney's fees. Petitioner brought to the Supreme Court the instant petition after the CA denied its
motion for reconsideration.

ISSUE/S:
Whether or not petitioner is entitled to a reduction in price based on the provisions of Article 1542 of the
Civil Code?

RULING:
NO. As correctly noted by the trial court and the Court of Appeals, the sale between petitioner and
respondent Buriol involving the latter's property is one made for a lump sum. The Deed of Absolute Sale
shows that the parties agreed on the purchase price on a predetermined area of five hectares within the
specified boundaries and not based on a particular rate per area. In accordance with Article 1542, there
shall be no reduction in the purchase price even if the area delivered to the petitioner is less than that
stated in the contract. In the instant case, the area within the boundaries as stated in the contract shall
control over the area agreed upon in the contract.

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