73 J.M. Tuason & Co., Inc. v. Ligaya Javier

73 J.M. Tuason & Co., Inc. v. Ligaya Javier Article 1529.
Article 1529. In the sale of immovable property, even though it may have been stipulated
G.R. No. L-28569; February 27, 1970 that upon the failure to pay the price at the time agreed upon the rescission of the
Topic: Payment or performance contract shall of right take place, the vendee may pay, even after the expiration of the
Petitioner: J. M. Tuason & Co. Inc period, as long as no demand for rescission of the contract has been made upon him
Respondent: Ligaya Javier either judicially or by a notarial act. After the demand, the court may not grant him a new
Ponente: Concepcion, C.J. term.
Note: This was from Code before the New Civil Code
Facts:
 Petitioner and respondent entered into a contract Issue: Whether the respondent has substantially performed in good faith? (Yes)
o The former agreed to sell to the latter a parcel of land in the Sta. Mesa Heights
Subd. Held:
o Price was P3,691.20 with 10% annual interest Yes, respondent had substantially performed her obligation in good faith.
o Payment terms: P896.12 would be paid upon execution of the contract and  Apart from the initial installment of P396.12 paid upon the execution of the contract,
P43.92 every month thereafter for a period of 10 years she religiously satisfied the monthly installment accruing thereafter for a period of
 The contract also had par. 6 which contained – almost 8 years.
o That the respondent will have a grace period of 1 month in case she fails to  Her total payments, including stipulated interest, aggregated P4,134.08, which is more
make any payment on the agreed upon dates than the principal obligation of P3,691.20
o If grace period expires without payment, an interest of 10% p.a. will be  Furthermore, she has offered to pay all the payments in arrears and the CFI did sentence
charged on the amounts that should have been paid her to make such payments
o Should 90 days lapse from the expiration of the grace period, and without  Thus, under the circumstances, the Court sees fit the application of Art. 1234 of the Civil
payment, the petitioner may cancel the contract and dispose the property in Code [Code prior to the New Civil Code]
favor of other persons o Art. 1234 of said Code, if the obligation has been substantially performed in
o In case of cancellation of the contract, the petitioner shall keep all amount good faith, the obligor may recover as though there had been a strict and
paid + improvements therein as rent, and as payment for damages complete fulfillment, less damages suffered by the obligee.
 The respondent renounces all claims for return of the sums paid;
and
 Obligates herself to vacate and deliver the property to the petitioner
 The respondent was place in possession upon the payment of the first installment of
P896.12
 However, she defaulted on her payments thereafter –
o After the lapse of more than 90 days from the expiration of the grace period,
the petitioner informed the respondent that their contract had been rescinded
 The petitioner was forced to file a complaint against the respondent after the latter
refused to vacate the subject parcel of land
 The respondent claimed that her failure to pay was due to unforeseen circumstances,
that she would pay the arrears, and that the petitioner could not have unilaterally
rescinded the contract
 The respondent offered to pay all the installment payments in arrears, interest thereon,
and reasonable attorney’s fees
o The same offer was made during the pre-trial conference but the petitioner
turned it down
 CFI, applying Art. 1592 of the Civil Code, ruled that the contract between the petitioner
and the respondent was not yet rescinded
o It ordered respondent to make payments in arrears, with interest thereon at
10% p.a., attorney’s fees, and costs of suit
 The petitioner argues that Art. 1529 only applies to contracts of sale, and do not apply
to contracts to sell

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73 J.M. Tuason & Co., Inc. v. Ligaya Javier Article 1529.

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