Rillo v. Court of Appeals

Summary

This case involves a contract to sell a condominium unit where buyer Emiliano Rillo repeatedly defaulted on installment payments despite multiple restructuring attempts. The Supreme Court affirmed the Court of Appeals' application of Republic Act No. 6552 (Maceda Law) over Civil Code rescission provisions, recognizing that contracts to sell are governed by special protective legislation for installment buyers. The Court clarified that in contracts to sell, full payment is a suspensive condition and non-payment prevents the vendor's obligation to convey title from acquiring binding force. The decision established that buyers who pay less than two years of installments are only entitled to a 60-day grace period and are not entitled to refunds upon contract cancellation, protecting both buyer and seller rights under installment sale arrangements.