Absence of consideration

Mate vs. Court of Appeals [May 21, 1998]

In Mate vs. Court of Appeals, the Supreme Court of the Philippines upheld the validity of a deed of sale with the right to repurchase, despite the buyer’s checks being dishonored. The Court clarified that failure of consideration, such as dishonored checks, does not invalidate a contract but provides grounds for legal action to recover the owed amount.

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Rosaroso vs. Doria [June 19, 2013]

In Rosaroso vs. Doria, the Supreme Court of the Philippines addressed a double sale of property. The Court upheld the validity of the first sale to Luis Rosaroso’s children, citing the presumption of sufficient consideration. It declared the subsequent sale to Meridian Realty void, noting that Meridian was not a buyer in good faith, as it failed to investigate the property’s actual occupants.

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