- Petitioner
- Bienvenido M. Casiño, Jr.
- Respondent
- The Court of Appeals
- Citation
- G.R. No. 133803
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Garcia, J.
- Decided
- September 16, 2005
Summary
This case involves a breach of contract dispute where contractor Bienvenido Casiño failed to complete delivery and installation of narra wood parquet by the May 1990 deadline under his contract with Octagon Realty Development Corporation. Despite receiving a 40% downpayment, Casiño delivered only 26,727.02 sq. ft. out of the contracted 60,973 sq. ft. The Supreme Court affirmed the lower courts' finding that this constituted substantial breach justifying Octagon's unilateral rescission under Article 1191 of the Civil Code. The Court upheld the award of P2,111,061.69 in actual damages and P50,000.00 attorney's fees, emphasizing that an injured party may extrajudicially rescind a reciprocal contract for fundamental breach without prior judicial action, though at its own risk pending judicial validation.
Intellegal Wiki · Key Holding
A party may rescind a reciprocal obligation for a substantial and fundamental breach (Article 1191), and an extrajudicial rescission is valid.
An editorially maintained summary of the rule this Supreme Court decision is cited for — not legal advice.