- Petitioner
- Supercars Management & Development Corporation
- Respondent
- The Late Filemon Flores
- Citation
- G.R. No. 148173
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Sandoval-Gutierrez, J.
- Decided
- December 10, 2004
Summary
This case involves the rescission of a vehicle sale contract due to hidden defects. Filemon Flores purchased a defective Isuzu vehicle from Supercars Management & Development Corporation for P212,000.00. After delivery, the vehicle exhibited multiple persistent defects despite repeated repairs. Flores validly rescinded the contract and returned the vehicle, which was accepted by the seller without objection. The Supreme Court upheld Flores' right to rescission under Civil Code provisions on warranty against hidden defects, affirming his entitlement to refund of the down payment and insurance premium totaling P70,974.80 with interest. However, the Court deleted the damages awards for lack of proper factual basis and justification. The decision establishes important precedent on buyers' remedies for breach of warranty against hidden defects in sales contracts, emphasizing that valid extra-judicial rescission creates mutual obligations for restitution even when the object has been subsequently transferred to third parties through separate transactions.