Paragas v. Heirs of Dominador Balacano

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SPS. RUDY PARAGAS AND CORAZON B. PARAGAS, petitioners,vs.HRS.

OF
DOMINADOR BALACANO, namely: DOMINIC, RODOLFO, NANETTE AND
CYRIC, all surnamed BALACANO, represented by NANETTE BALACANO and
ALFREDO BALACANO, respondents.
[G.R. No. 168220. August 31, 2005.]

Doctrine:

The general rule is that a person is not incompetent to contract merely


because of advanced years or by reason of physical infirmities. However,
when such age or infirmities have impaired the mental faculties so as to
prevent the person from properly, intelligently, and firmly protecting her
property rights then she is undeniably incapacitated.

RTC CA SC

Sales was void because Gregorio was Affirmed RTC Affirmed CA


seriously ill and thus vitated his consent

Facts

● Gregorio had three children: Domingo, Catalino and Alfredo. Gregorio


allegedly sold two lots a week before his death to Spouses Paragas. The
spouses sold a portion of the first lot to Catalino. Domingo's children filed a
complaint for annulment of sale and partition against Catalino and the
Spouses Paragas.

● Contention of Domingo's children:

○ Gregorio was too ill to give full consent to the disposal of his property
○ They also argue that assuming Gregorio was of sound mind, he could
only transfer half portions of the two lots since the other half belongs
to Gregorios wife, Lorenza

● Contention of Spouses Paragas et al

○ Gregorio and the spouses already agreed to the sale even before the
former's hospitalization w/ a P50,000 consideration already paid
beforehand

Issue

Was Gregorio capable of giving free and full consent to the sale?

Held:

No. In Domingo v. CA, the Court ruled that the general rule is that a person is
not incompetent to contract merely because of advanced years or by reason
of physical infirmities. However, when such age or infirmities have impaired
the mental faculties so as to prevent the person from properly, intelligently,
and firmly protecting her property rights then she is undeniably
incapacitated. In this case, Gregorio was an octogenarion and was suffering
from liver cirrhosis (to which he died of a week later) at the time the deed of
sale was allegedly signed by him on his death bed in the hospital. Thus, there
is doubt on his physical and mental capacity to freely consent to the contract.

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