Facts:

• Parties involved: Berlin Taguba (plaintiff) and Maria Peralta Vda. de Leon (defendant)
• Date and place: August 27, 1972, in Cauayan, Isabela
• Berlin Taguba is the owner of a residential lot in Cauayan, Isabela.
• Maria Peralta Vda. de Leon, along with the Asuncion spouses, were occupying portions of the lot as lessees.
• On August 27, 1972, Taguba sold a portion of the lot to De Leon through a "Deed of Conditional Sale" for the sum of P18,000.
• The deed stated that failure to pay the full balance by December 31, 1972, would result in an extension of six months with interest, and if payment is still not made, the purchase price would increase.
• De Leon claimed that she had already paid P12,500 and tendered payment of the balance within the grace period, but Taguba refused to accept it.
• De Leon filed a complaint for Specific Performance with Preliminary Mandatory Injunction with Damages against Taguba and his wife.
• The lower court ruled in favor of De Leon, ordering Taguba to execute a deed of absolute sale for the portion of the lot she occupied and to reimburse her for any amount received in excess of the costs.
• The Court of Appeals reversed the decision, ordering Taguba to execute a deed of absolute sale for the 400 square meter portion of the lot and declaring the sale to the Asuncion spouses null and void.

Issue:

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Ruling:

• The Supreme Court affirmed the decision of the Cou...(Unlock)

Ratio:

• The contract of sale between Taguba and De Leon was absolute in nature. The "Deed of Conditional Sale" did not contain any stipulation reserving ownership of the property in Taguba until full payment was made. Therefore, the sale was not a conditional sale but an absolute sale.
• Taguba had not properly rescinded the contract. The contract provided for an extension of six months with interest if the full balance was not paid by December 31, 1972. However, Taguba refused t...continue reading