Manuel C. Pagtalunan v. Rufina Dela Cruz Vda. de Manzano

Summary

The Supreme Court affirmed the dismissal of an unlawful detainer case filed by Manuel Pagtalunan against Rufina dela Cruz, who occupied property under a 1974 Contract to Sell. The Court ruled that the contract was not validly cancelled under the Maceda Law (R.A. 6552), which requires a notarial act of rescission and refund of cash surrender value before actual cancellation. Despite respondent's payment default after 1979, her continued possession remained lawful due to invalid cancellation. The Court ordered respondent to pay the remaining P5,500 balance plus interest, with petitioner obligated to execute a deed of sale upon payment, demonstrating the Maceda Law's protection of installment buyers' rights in real estate transactions.