Title
Guillermo R. Miranda and Antero Miranda vs. Caridad Estates of Cavite, Inc. and Gregorio Alvarez
Case
G.R. No. L-2077
Decision Date
Oct 3, 1950
The Supreme Court ruled that the vendor's unilateral cancellation of installment sale contracts was invalid without prior judicial or notarial demand, affirming the trial court's decision in favor of the plaintiffs.
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Case Digest (G.R. No. L-2077)

Facts:

  • The consolidated cases involve two separate transactions with Caridad Estates of Cavite, Inc.

G.R. No. L-2077:

  • Plaintiffs: Guillermina R. Miranda and Antero Miranda.
  • Date of Contract: September 13, 1941.
  • Subject: Purchase of a parcel of land in Cavite City for P1,685.00.
  • Payment Terms: Installments over one year.
  • Contract Clause: Failure to pay within 30 days of due date results in forfeiture and annulment, with payments considered as rental.
  • Payments Made: P200.00 on contract date, P100.00 on October 29, 1941.
  • Issue: Subsequent payments halted due to war.
  • Action by Caridad Estates: Rescinded contract on July 8, 1943, sold land to Gregorio Alvarez.
  • Plaintiffs' Action: Post-liberation, sought to annul Alvarez's title, compel acceptance of balance, and claim P800.00 damages.

G.R. No. L-2121:

  • Plaintiff: Paulino Aspuria.
  • Date of Contract: April 14, 1940.
  • Subject: Purchase of a 388 square meter parcel of land for P1,358.00.
  • Payments Made: P638.00 by December 6, 1941.
  • Balance: P720.00.
  • Action by Caridad Estates: Canceled contract on March 27, 1944, sold land to Perpetuo de Jesus, who sold it to Rodolfo Bonanza.
  • Deed of Sale: Executed in favor of Bonanza on November 8, 1944, with a Transfer Certificate of Title issued.
  • Court of First Instance of Cavite: Ruled in favor of plaintiffs, stating rescissions were ineffective without notarial or judicial demand and unwarranted under contract terms.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court reversed the judgments of the Court of First Instance of Cavite.
  • The court ruled in favor of Caridad Estates of Cavite, Inc....(Unlock)

Ratio:

  • The contracts had clear stipulations allowing Caridad Estates to rescind and forfeit payments as rental in case of default.
  • The court referenced the case of Caridad Estates Subdivision Inc. v. Pablo Santero, which upheld simila...continue reading

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