Republic of the Philippines v. Jerry V. David

Summary

The Supreme Court reversed lower courts in this breach of contract case involving an SSS employee housing unit. David violated his deed's requirement for 'actual occupancy AND possession at all times' by allowing others to live in the unit while claiming it was uninhabitable. The Court distinguished actual occupancy from mere possession, emphasizing the conjunctive nature of the requirement. The decision protects the integrity of government housing programs intended exclusively for employee-beneficiaries. The Court ordered rescission with mutual restitution, requiring SSS to refund the purchase price plus interest and improvement value, while David must vacate. This case establishes important precedent on interpreting restrictive covenants in social housing contracts and the distinction between occupancy and possession.