2026 Civil Law, Q14

On January 1, 2026, Martha and Lazarus entered into a contract of sale, where Martha bound herself to deliver and transfer the ownership of a particular parcel of land to Lazarus on or before March 31, 2026, for PHP 4 million, payable on or before December 31, 2026. The following day, Martha and Lazarus executed a document denominated as a Deed of Absolute Sale and had it notarized by Atty. Lipas, whose notarial commission expired on December 31, 2024. On February 2, 2026, Martha died leaving Moses as her sole heir. On April 2, 2026, Lazarus demanded from Moses the delivery of the parcel of land. Moses refused to comply, arguing that the document purporting to contain the sale between Lazarus and his mother is null and void, as the same was notarized by a person not authorized to administer oaths. Likewise, Moses averred that he is not in any way bound by the contract as he is a complete stranger thereto. Finally, Moses claimed that the purchase price was not yet paid when the demand was made. Is Moses correct? Explain.

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What is the legal effect of an expired notary commission on a written contract of sale of real property?

Under the principle of relativity of contracts in Article 1311 of the Civil Code, how are heirs affected by contracts executed by their predecessors-in-interest?

Under Article 1524 of the Civil Code, when is a vendor bound to deliver the thing sold even if the buyer has not yet paid the purchase price?

What type of contract is a sale of real property under Philippine civil law with respect to its perfection?

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Why was Moses legally obligated to deliver the parcel of land to Lazarus despite non-payment of the purchase price on April 2, 2026?

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1. Form of Contracts
Under Articles 1356 and 1358 of the Civil Code, contracts are obligatory in whatever form entered into, provided all essential requisites are present. A sale of real property is consensual and perfected by consent. Although the law directs that sales of real rights over immovables appear in a public document, this requirement is merely for convenience and registration, not for validity. Defective notarization merely strips the instrument of its public character, reducing it to a private document without invalidating the underlying contract of sale.

2. Relativity of Contracts
Under Article 1311 of the Civil Code, the principle of relativity dictates that contracts take effect between the contracting parties, their assigns, and heirs. An heir is not a third person or stranger to a contract executed by their predecessor-in-interest. Upon the decedent's death, transmissible contractual obligations are transmitted to the heirs to the extent of the inheritance. Consequently, an heir steps into the shoes of the deceased predecessor and is legally bound to fulfill the transmissible contractual obligations assumed by the decedent during her lifetime.

3. Vendor's Delivery Obligation
Under Article 1524 of the Civil Code, a vendor is not bound to deliver the thing sold if the buyer has not paid the price, unless a period for payment has been fixed in the contract. When the parties stipulate a specific term for payment, the sale is on credit, and the obligation to deliver arises upon the agreed delivery date despite non-payment. A vendor or her heir cannot withhold delivery on the ground of non-payment when the period granted to the buyer has not yet arrived.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

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