Facts:

• The case involves a contract to sell a parcel of land in the Philippines.
• On May 18, 1987, the petitioners entered into a contract to sell with private respondent Pasig Realty and Development Corporation for the purchase of a parcel of land in Parkwood Greens Executive Village, Maybunga, Pasig.
• The contract required a down payment and the balance payable over 60 months with interest.
• The petitioners paid the down payment and issued postdated checks for the remaining balance, but most of the checks were dishonored due to insufficient funds.
• The private respondent demanded the settlement of unpaid amortizations, but the petitioners only made a partial payment.
• The private respondent then exercised its option to cancel the contract and forfeit the payments made.

Issue:

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Ruling:

• The court ruled in favor of the private respondent and upheld the validity of the rescission of the contract and the forfei...(Unlock)

Ratio:

• The court based its decision on the provisions of the contract to sell.
• The contract granted the vendor the option to cancel the contract and forfeit the payments made if the vendee fails to pay any of the monthly amortizations within 60 days from the due date.
• In this case, the petitioners defaulted on their payments and failed to settle their obligations within the grace period.
• Therefore, the private respondent had the right to cancel the contract and forfeit the payments made.
• The court also noted that the petitioners' claim of the private respondent's failure to develop the subdivision was not supported by evidence.
• An ocular inspection report showed substantial compliance on ...continue reading