Article 1405-1406 Word.docx

ARTICLE 1405. Contracts infringing the Statute of Frauds, referred to in No. 2 of Article 1403, are ratified by the failure to object to the presentation of oral evidence to prove the same, or by acceptance of benefits under them.

Two ways of ratification of contracts infringing the Statute of Frauds: 1. failure to object to the presentation of oral evidence. (Domalagan v. Bolifer, 33 Phil. 471) 2. acceptance of benefits under them. (Hernandez v. Andal, 78 Phil. 196)

ARTICLE. 1406 When a contract is enforceable under the Statute of Frauds, and a public document is necessary for its registration in the Registry of Deeds, the parties may avail themselves of the right under Article 1357.

Right of One Party to Compel the Other to Execute the Needed Instrument The right of one party to have the other execute the public document needed for convenience in registration, is given only when the contract is both valid and enforceable.

Example: •

a party to an oral sale of real property cannot compel the other to put the contract in a public document for purposes of registration because it is unenforceable unless it is ratified

•

right of one party to have the other execute a public document is not available in a donation of realty when it is in a private instrument because the donation is void

ALMIROL v. MONTSERRAT, 48 Phil. 67 Where by virtue of a verbal sale, the applicant came into actual possession of the land, and where said applicants sought the registration of the subject lot already in their possession, and where the oppositors claimed that the oral proof of the contract cannot be adduced in court where the registration was being questioned, Supreme court held that, “as in this case, parol evidence of sale is adduced not for the purpose of enforcing performance thereof, but on the bassis of the lawful possession of the applicants entitling them to have the land thereby sold and registered in their name, the statute of fraud is not applicable.