Case Digest (G.R. No. 139523)
Facts:
Sps. Felipe and Leticia Cannu, Petitioners, filed a Complaint for Specific Performance and Damages on June 24, 1993 before Branch 135, Regional Trial Court of Makati (Civil Case No. 93-2069) against Sps. Gil and Fernandina Galang and the National Home Mortgage Finance Corporation (NHMFC) arising from a sale of a house and lot in Pulang Lupa, Las Piñas covered by TCT No. T-8505. Respondents-spouses Galang had obtained a loan from Fortune Savings & Loan Association for P173,800.00 secured by a real estate mortgage on the property, which NHMFC purchased in early 1990. Respondent Fernandina Galang authorized her attorney-in-fact, Adelina R. Timbang, to sell the property. Petitioners agreed to buy and to assume the mortgage; the parties executed a Deed of Sale with Assumption of Mortgage dated August 20, 1990 which on its face recited a consideration of P250,000.00, although the pleadings and evidence showed the agreed cash consideration was P120,000.00. Petitioners paid respondents ...Case Digest (G.R. No. 139523)
Facts:
In SPS. FELIPE AND LETICIA CANNU, PETITIONERS, VS. SPS. GIL AND FERNANDINA GALANG AND NATIONAL HOME MORTGAGE FINANCE CORPORATION, RESPONDENTS, petitioners executed a Deed of Sale with Assumption of Mortgage (20 August 1990) for a Las Piñas house and lot and paid respondents partial cash and several amortizations to NHMFC, but the formal assumption was not approved by NHMFC. Petitioners paid P75,000 to the vendors and P55,312.47 to NHMFC, left a P45,000 unpaid balance, and ceased payments; respondents then paid off the mortgage (21 May 1993), sought rescission, and the RTC dismissed petitioners' complaint and rescinded the sale; the Court of Appeals affirmed with modification and ordered return of P135,000, and the Supreme Court affirmed with modification ordering return of P165,312.47.Issues:
- Was petitioners' breach of the Deed of Sale with Assumption of Mortgage substantial to warrant rescission?
- Did petitioners substantially comply with their obligation to pay the monthly amortizations to NHMFC?
- Were respondents entitled to rescind the contract after paying off the mortgage without prior judicial declaration?
- Is the action for rescission in this case subsidiary under Article 1383 of the Civil Code?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)