Vicente L. Go v. Pura V. Kalaw

Summary

Vicente Go entered into a Contract to Sell with Pura V. Kalaw, Inc. for a condominium unit, paying half the purchase price as down payment and occupying the unit since 1982. When the condominium application was denied due to lack of parking spaces, respondent asked Go to sign a waiver, which he refused citing building defects. Respondent rescinded the contract and treated payments as rentals. Go occupied the unit for eight years without paying the balance or rentals. The Supreme Court affirmed the Court of Appeals decision upholding the contract rescission, applying the down payment as rentals, and awarding attorney's fees to respondent. The Court distinguished contracts to sell from contracts of sale, emphasizing that ownership remains with the vendor until full payment, and that respondent had contractual rights to rescind and apply payments as rentals.