SANTIAGO CRUZADO v. ESTEFANIA BUSTOS and MANUEL ESCALER [G.R. No. 10244. February 29, 1916.

Facts: A contract of sale was simulated for the sole purpose of making it appear that the vendee
acquired for the sum of P2,200, and became the owner of a piece of real properly, which was to serve
him as security to enable him to hold the office of procurador of a Court of First Instance, pursuant to
the statutes in force during the previous sovereignty.

Issue: What is the effect of the fictitious sale?

Held: Such contract was perfect and binding upon both contracting parties, it appearing in the public
instrument executed for the purpose that the vendor and the vendee agreed upon the property sold
and on the price stipulated; but such contract cannot be considered to have been consummated, unless
it is proved that the purchaser paid the price and took possession of the property