Felisa Osorio v. Chas. R. Bennet

Summary

Property owners Osorio and Tirona sued government officials for taking their fishery land for road construction. They had conditionally ceded 13,000 square meters with agreements that defendants would use mud from their higher fishery area and pay for using their existing wall. When defendants breached these conditions, plaintiffs sought contract resolution and damages under Civil Code Article 1124. The Supreme Court awarded P520.40 representing the land's assessed value of P0.04 per square meter with 6% annual interest, rejecting higher valuation claims and additional damages for lack of proof. The case establishes that in reciprocal obligations, breach by one party gives the other the right to resolve the contract with damages, but remedies of resolution and performance are alternative, not cumulative.