Mr. Seller and Mr. Buyer orally agreed on the following:
(i) the land to be sold has an area of 10,000 sq. meters
(ii) price is ₱5 million
(iii) Mr. Seller shall prepare the deed of sale.With fraudulent intent, Mr. Seller knowing the inadequacies of Mr.
Buyer with respect to numbers wrote 1,000 sq. meters instead of 10,000 sq. meters. The sale is

Question

Quizplus · Accepted Answer

The sale is valid because the agreement between Mr. Seller and Mr. Buyer meets the basic requirements for a valid contract (offer, acceptance, and consideration). However, since Mr. Seller intentionally misrepresented the area of the land in the deed of sale, the instrument (deed of sale) may be reformed to reflect the true agreement of 10,000 sq. meters. This is a case of fraud in the execution of the instrument, not in the formation of the contract itself.

Mr Seller and Mr