Petitioner
Government Service Insurance System (Gsis)
Respondent
Honorable Court of Appeals
Citation
G.R. No. 105567
Court
Supreme Court
Division
Second Division
Ponente
Puno, J.
Decided
November 25, 1993

Summary

GSIS conducted a lottery in 1963 for housing units in GSIS Village, with Esperanza Leuterio winning a house and lot. In 1965, they executed a conditional deed of sale for P19,740.00 payable over 15 years. After construction completion in 1966, GSIS increased prices based on final costs, claiming authority from a marginal notation on the deed. The trial court found this notation was inserted without the Leuterios' consent. After completing payments with accelerated P200 monthly installments, the Leuterios demanded execution of the final deed of sale, which GSIS refused. The Supreme Court affirmed lower court decisions ordering GSIS to execute the deed at the original price, ruling that price adjustment without mutual consent violates Article 1473 of the Civil Code, and that GSIS must bear losses from its own failure to properly estimate construction costs.

Statutes applied

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By the Intellegal Editorial Board · November 25, 1993

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