Benigno M. Salvador v. Jorge Z. Ortoll

Summary

This case involved a dispute over the enforcement of a compromise agreement for the purchase of a condominium unit. Originally arising from an option to purchase agreement and subsequent ejectment case, the parties settled through a compromise agreement requiring payment of P11,300,000.00 in two installments. When the buyer Salvador paid two days late, the seller Ortoll sought to rescind the agreement and opposed the trial court's writ of execution. The Court of Appeals sided with Ortoll, but the Supreme Court reversed, finding that the writ of execution properly enforced the compromise without substantially altering its terms. The Court emphasized that Ortoll was estopped from rescinding due to his continued willingness to proceed with the sale after the alleged breach, and that compromise agreements have the force of res judicata and should be enforced to promote amicable settlement of disputes.