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JurisprudenceG.R. No. 174978 -

G.R. No. 174978 - SALLY YOSHIZAKI, VS. JOY TRAINING CENTER OF AURORA, INC.. D E C I S I O N - Supreme Court E-Library

Cited Laws

RA 218,RA 308,RA 168,RA 8799RA 427,RA 13,RA 222
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Decision

Ruling

Accordingly, we will examine the relevant pieces of evidence presented to the lower court. There is no contract of agency between Joy Training and the spouses Johnson to sell the parcel of land with its improvements Article 1868 of the Civil Code defines a contract of agency as a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter. It may be express, or implied from the acts of the principal, from his silence or lack of action, or his failure to repudiate the agency, knowing that another person is acting on his behalf without authority. As a general rule, a contract of agency may be oral. However, it must be written when the law requires a specific form. [33] Specifically, Article 1874 of the Civil Code provides that the contract of agency must be written for the validity of the sale of a piece of land or any interest therein. Otherwise, the sale shall be void. A related provision, Article 1878 of the Civil Code, states that special powers of attorney are necessary to convey real rights over immovable properties. The special power of attorney mandated by law must be one that expressly mentions a sale or that includes a sale as a necessary ingredient of the authorized act . We unequivocably declared in Cosmic Lumber Corporation v. Court of Appeals [34] that a special power of attorney must express the powers of the agent in clear and unmistakable language for the principal to confer the right upon an agent to sell real estate. When there is any reasonable doubt that the language so used conveys such power, no such construction shall be given the document. The purpose of the law in requiring a special power of attorney in the disposition of immovable property is to protect the interest of an unsuspecting owner from being prejudiced by the unwarranted act of another and to caution the buyer to assure himself of the specific authorization of the putative agent. [35] In the present case, Sally presents three pieces of evidence which allegedly prove that Joy Training specially authorized the spouses Johnson to sell the real properties: (1) TCT No. T-25334, (2) the resolution, (3) and the certification . We quote the pertinent portions of these documents for a thorough examination of Sallys claimuote the pertinent portions of the said documents.. this Court becuse es. es Training did not e. TCT No. T-25334, entered in the Registry of Deeds on March 5, 1998, states: A parcel of land x x x is registered in accordance with the provisions of the Property Registration Decree in the name of JOY TRAINING CENTER OF AURORA, INC., Rep. by Sps. RICHARD A. JOHNSON and LINDA S. JOHNSON , both of legal age, U.S. Citizen, and residents of P.O. Box 3246, Shawnee, Ks 66203, U.S.A. [36] (emphasis ours) On the other hand, the fifth paragraph of the certification provides: Further, Richard A. and Linda J[.] Johnson were given FULL AUTHORITY for ALL SIGNAT