- Petitioner
- Francisco Gonzales
- Respondent
- Severino C. Lim
- Citation
- G.R. No. 130403
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Corona, J.
- Decided
- July 30, 2007
Summary
This case involves a dispute over the sale of corporate shares where petitioner Francisco Gonzales sold Motown Vehicles Inc. shares to respondents for P6,746,000, with P500,000 balance contingent on obtaining official communication from lessor Tanglaw Realty regarding lease continuation. When one lease contract was discovered to be already terminated, respondents sued to avoid paying the balance. The Supreme Court ruled that respondents waived the condition by proceeding with the contract, taking possession, and negotiating directly with Tanglaw without waiting for the required communication. The Court applied Article 1545 of the Civil Code on conditions in sales contracts and found that respondents' conduct demonstrated they did not expect strict compliance with the condition, effectively waiving it and making the P500,000 payment due.