Case Digest (G.R. No. 254248)
Facts:
On September 14, 2009, Virgilio A. Taok filed in the Regional Trial Court, Bogo, Cebu a complaint for rescission of contract, damages, and attorney's fees against Supremido Conde and Raul Conde arising from an Agreement dated January 29, 2007 by which Taok sold a 943 sqm parcel (Lot No. 906‑B‑1) for PHP 1,000,000 with a down payment of PHP 165,000 and the balance of PHP 835,000 payable in PHP 20,000 monthly bank installments beginning February 2007. Respondents made no monthly payments, alleged an oral modification delaying payments to May 2007 and later tendered payment in 2009; the RTC on July 8, 2015 rescinded the Agreement, the Court of Appeals on March 7, 2018 reversed and ordered specific performance and payment, and petitioner sought review under Rule 45.Issues:
- Was the Agreement a contract of sale or a contract to sell?
- Did respondents materially breach the Agreement with respect to payment of the purchase price?
- Was rescission of the Agreement proper and what r
Case Digest (G.R. No. 254248)
Facts:
- Parties and nature of action
- Virgilio A. Taok (Petitioner) filed a complaint for rescission of contract, damages, and attorney's fees against Supremido Conde and Raul Conde (Respondents) on September 14, 2009 in the Regional Trial Court, Bogo, Cebu.
- Subject property and written Agreement
- The parties executed an Agreement dated January 29, 2007 covering a 943 sqm parcel identified as Cadastral Lot 906-P(B-1) under Tax Declaration 21274 in Agujo, Daanbantayan, Cebu.
- The Agreement stated sale price of ONE MILLION PESOS (PHP 1,000,000.00); a partial payment of ONE HUNDRED SIXTY-FIVE THOUSAND PESOS (PHP 165,000.00) was handed to the vendor in January 2007; and the remaining balance of PHP 835,000.00 was to be paid in monthly installments of TWENTY THOUSAND PESOS (PHP 20,000.00) through bank payments.
- The Agreement indicated the first monthly installment was due on February 29, 2007.
- Alleged breaches and respondents' defenses
- Petitioner alleged respondents made no amortization payments and failed to pay for two years and seven months, prompting barangay assistance and eventual filing of the complaint.
- Respondents admitted the Agreement but denied refusal to pay; they asserted an oral modification that installments would commence in May 2007 to allow Raul to raise funds while working in the United States.
- Respondents averred Raul phoned petitioner he would send PHP 60,000.00 for three months' installments, but petitioner allegedly instructed deferment or a lump-sum payment instead and only sought his copy of the signed Agreement at the barangay meeting.
- On July 7, 2009, Raul allegedly informed petitioner he was ready to pay the full balance of PHP 835,000.00 through his sister, Mirza, and respondents submitted an asserted proof of remittance of PHP 837,045.00.
- Petitioner allegedly refused the payment and demanded an additional PHP 400,000.00; respondents thereafter, by Letter dated August 25, 2009, tendered full payment and threatened to consign to court if petitioner did not accept payment within 30 days.
- Respondents counterclaimed for moral damages of PHP 50,000.00, litigation expenses of PHP 20,000.00, acceptance fee of PHP 20,000.00, and PHP 1,500.00 per appearance.
- Trial court disposition
- By Decision dated July 8, 2015, the Regional Trial Court, Branch 61, Bogo City, granted the complaint and rescinded the Agreement for breach by respondents in failing to pay monthly installments. The court denied the money claims of both parties.
- The trial court denied respondents' motion for reconsideration on September 17, 2015.
- Court of Appeals disposition
- In CA-G.R. CV No. 06236, the Court of Appeals issued a Decision dated March 7, 2018 reversing and setting aside the trial court's ...(Subscriber-Only)
Issues:
- Classification of the Agreement
- Whether the Agreement dated January 29, 2007 is a contract of sale or a contract to sell.
- Existence and materiality of breach
- Whether there was a material breach of the Agreement with respect to payment of the purchase price.
- Proper remedy and relief...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)