FACTS:

Two motor vehicles—Honda Gemini and Holden Premiere Model—were purchased from Citiwide Motors by a person who identified himself as Jojo Consunji. He bought the vehicles purportedly for his father. Upon delivery to him of the vehicles, he paid a manager’s check drawn against PCIB. The check though was dishonored by the bank on the ground that the check’s value has been materially altered. This was reported to the police authorities and it was found out that the person misrepresenting himself was actually Suarez who had a long line of criminal cases against him for his modus operandi. The Holden car was recovered after being abandoned somewhere in Quezon City. The Honda on the other hand, was discovered to be sold to Ledesma. Ledesma averred he purchased the vehicle in good faith from one Neyra, as evidenced by his certificate of registration. Citiwide Motors was able to recover.

HELD:

There was a perfected unconditional contract of sale between Citiwide Motors and Suarez. The subsequent dishonor of the check merely amounted to failure of consideration which doesn't render a contract of sale void, but merely allows the prejudiced party to sue for specific performance or rescission of the sale. This being the case, Citiwide motors wasn't unlawfully deprived of the property. It is thus not entitled to the return of the vehicle from Ledesma who bought the property in good faith and for consideration.