G.R. No. 120465 - WILLIAM UY AND RODEL ROXAS, VS. COURT OF APPEALS, HON. ROBERT BALAO AND NATIONAL HOUSING AUTHORITY.

Ruling

Accordingly, we hold that the NHA was justified in cancelling the contract. The realization of the mistake as regards the quality of the land resulted in the negation of the motive/cause thus rendering the contract inexistent. [28] Article 1318 of the Civil Code states that: Art. 1318. There is no contract unless the following requisites concur: (1) Consent of the contracting parties; (2) Object certain which is the subject matter of the contract; (3) Cause of the obligation which is established. (Underscoring supplied.) Therefore, assuming that petitioners are parties, assignees or beneficiaries to the contract of sale, they would not be entitled to any award of damages. WHEREFORE, the instant petition is hereby DENIED. SO ORDERED.