Haystack: Belisario vs. Vda. de Zulueta (GR 39815, 28 April 1934)

Belisario vs. Vda. de Zulueta
[G.R. No. 39815. April 28, 1934.]
En Banc, Butte (J): 4 concurring

Facts: On 29 April 1927, Eulalio Belisario sold the two tracks of land situated in the barrio of San Francisco, municipality of Lupao, in the province of Nueva Ecija (described in TCT 3357 and 3358 issued by the Register of Deeds, Province of Pangasinan; the province where the lands were formerly situated) absolutely and without reservation to Paz Natividad Viuda de Zulueta for the consideration of P37,000, which was duly paid, and the agreement on the part of the grantee to assume an indebtedness secured by a lien for P4,500, which was likewise duly paid. The deed recites that the sale is absolute and in perpetuity and the grantor warrants to defend the title. On the same date, Vda. de Zulueta executed and delivered in favor of Belasario an option to repurchase the lands on or before the end of May 1931, for the sum of P37,000. Both instruments were duly signed by both parties in the presence of two witnesses and acknowledged before a notary public and recorded. On 28 May 1931, Belisario appeared at the house of Vda. de Zulueta and offered to exercise his option of repurchase by tendering to the latter a check in the sum of P37,000, drawn by Rosendo Santiago against his account in the Peoples Bank and Trust Company (The books of the bank disclosed that at the time said check was tendered to Vda. de Zulueta the drawer thereof had on deposit in the said bank subject to check the sum of P5.85). Vda. de Zulueta refused.

Belisario filed an action for the recovery of the two tracks of land before the CFI Nueva Ecija. The trial court ruled in favor of Vda. de Zulueta. Belisario appealed to the Supreme Court.

The Supreme Court affirmed the judgment of the lower court, with costs against Belisario.

1. Check does not satisfy the requirements of legal tender
Even if the check had been good, Vda. de Zulueta was not legally bound to accept it because such a check does not satisfy the requirements of a legal tender.

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