- Petitioner
- William G. Kwong
- Respondent
- Atty. Ramon Gargantos
- Citation
- G.R. No. 152984
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Austria-Martinez, J.
- Decided
- November 22, 2006
Summary
Petitioner Kwong sold 15 Pampanga lots to respondents via conditional sale for $137,255.00. After payment defaults, parties executed Deed of Absolute Sale for 11 lots and Promissory Note for remaining 4 lots in 1990. When respondents again defaulted, Kwong sought rescission of original conditional sale. RTC granted rescission but CA reversed, finding novation occurred. Supreme Court affirmed CA, applying Civil Code Article 1292 on novation. Court held conditional and absolute sales cannot co-exist due to different natures and incompatible obligations. Evidence showed parties intended new agreement replacing old one, including substantial payments made, petitioner's counsel drafting new documents, and circumstances surrounding execution. Conditional sale was extinguished by novation, leaving nothing to rescind. Petition denied, affirming contract sanctity principles and novation doctrine in Philippine civil law.