Property Case Digest | Baluran v. Navarro
Baluran v. Navarro
79 SCRA 309
Facts:
Spouses Domingo Paraiso and Fidela Q. Paraiso were the owners of a residential lot located in Sarrat, Ilocos Norte. On February 2, 1964, the Paraisos executed an agreement entitled “BARTER” whereby as party of the first part they agreed to “barter and exchange” with spouses Avelino and Benilda Baluran their residential lot with the latter’s unirrigated riceland subject to some conditions. Among which, were that both. parties shall enjoy the material possession of their respective properties; the spouses Paraiso shall reap the fruits of the unirrigated riceland and the Balurans shall have a right to build their own house in the residential lot; that if the daughter of the former shall choose to reside the place and build her house on the lot, the latter shall be obliged to return the same and that neither shall encumber or alienate their respective properties as bartered without the consent of the other.
On May 6, 1975 Antonio Obendencio (grandson of the spouses Paraiso) filed with the Court a complaint to recover the above-mentioned residential lot from Avelino Baluran claiming that he is the rightful owner of said residential lot having acquired the same from his mother. Avelino Baluran contended that he is the rightful owner of the property as acquired by the barter agreement.
Issue:
Is the title “barter” in the contract controlling?
Held:
No, It is a settled rule that to determine the nature of a contract, courts are not bound by the name or title given to it by the contracting parties. The Court has held that contracts are not what the parties may see fit to call them but what they really are as determined by the principles of law. It was further stated that notwithstanding the use of the term “barter,” the parties intended to transfer only the material possession and, therefore, all that the parties acquired was the right of usufruct subject to a resolutory condition.
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- Property Case Digest | Avelino Baluran v. Hon. Ricardo Navarro
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