The municipal council of Cavite by Resolution No. 10, leased to Rojas some 70 or 80 square meters of Plaza Soledad, on condition that she pay rent quarterly in advance according to the schedule fixed in Ordinance No. 43, series of 1903 and that she obligate herself to vacate said land within 60 days subsequent to notification to that effect. Upon such notification, however, she refused to vacate the land, forcing the municipality to file a complaint before the CFI to order her to vacate the land. After a hearing of the case, the CFI dismissed the complaint.

Issues:

(1) Is the contract valid?

(2) If in the negative, what are the obligations of the parties?

Held:   (1) No. Article 1271 of the Old Civil Code, prescribes that everything which is not outside the commerce of man may be the object of a contract, and plazas and streets are outside of this commerce. Communal things that cannot be sold because they are by their very nature outside of commerce are those for public use, such as the plazas, streets, common lands, rivers, fountains, etc.

(2) Rojas must restore and deliver possession of the land described in the complaint to the municipality of Cavite, which in its turn must restore to her all the sums it may have received from her in the nature of rentals just as soon as she restores the land improperly leased.