Case Digest (G.R. No. 126083)
Facts:
Antonio R. Cortes (in his capacity as Administrator of the Estate of Claro S. Cortes) v. Hon. Court of Appeals and Villa Esperanza Development Corporation, G.R. No. 126083, July 12, 2006, First Division, Ynares‑Santiago, J., writing for the Court.For a total purchase price of P3,700,000.00, Villa Esperanza Development Corporation (the Vendee) and Antonio Cortes (the Vendor) entered into a Deed of Absolute Sale covering three lots (TCT Nos. 31113‑A, 31913‑A and 32013‑A) in Baclaran, Parañaque. The deed recited that upon execution the Vendee shall pay P2,200,000.00 (less advances already made totaling P1,213,000.00), the remaining P1,500,000.00 to be payable within one year secured by an irrevocable standby letter of credit; registration costs were to be shared and capital gains borne by the Vendor. The original deed was retained by Cortes for notarization.
On January 14, 1985, the Corporation sued for specific performance to compel Cortes to deliver the owner’s duplicate TCTs and the original Deed of Absolute Sale, alleging readiness and ability to pay the purchase price. Cortes answered and counterclaimed, asserting he had surrendered the owner’s duplicate TCTs to the broker and that the Corporation refused to complete the down payment; he claimed unpaid disturbance fees for a lessee and prayed for recovery of the outstanding balance or, alternatively, rescission and forfeiture of the partial payment.
The Regional Trial Court (Makati, Branch 138) on June 24, 1993 rescinded the sale and ordered Cortes to return P1,213,000.00 with interest, ruling that under the deed the Corporation should have paid the full P2,200,000.00 upon execution and that no evidence proved any modification of that term. The trial court denied the Corporation’s motion for reconsideration.
On appeal, the Court of Appeals (June 13, 1996) reversed and ordered Cortes to execute a Deed of Absolute Sale and deliver the owner’s duplicate TCTs simultaneously with the Corporation’s payment of the balance of the purchase price (P2,487,000.00), interpreting the parties...(Subscriber-Only)
Issues:
- Was the trial court correct in rescinding the contract of sale for the Corporation’s alleged failure to pay the agreed P2,200,000.00 down payment upon execution of the deed?
- Did Cortes perform his reciprocal obligation to deliver the original notarized Deed and the owner’s duplicate TCTs such that the Corporation’s failure to pay constituted delay justifying rescission, or did mutual delay preclude rescission and justify the Court of Appeals’ order of simulta...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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