Question

Scenario: John and Sarah entered into a verbal agreement regarding the sale of a piece of land in the Philippines. However, a dispute arises as John claims that Sarah breached the agreement by selling the land to a third party without his consent. John decides to file a case against Sarah for specific performance of their agreement.

Question: In resolving the dispute between John and Sarah, discuss the principles governing the effect and application of laws, particularly with regard to judicial decisions as provided in Article 8 of the Civil Code of the Philippines.

Explain how the court should consider previous judicial decisions in deciding the dispute between John and Sarah. Discuss the relevance and application of Article 8 of the Civil Code in this scenario.