Generoso v. Villanueva · G.R. 157318

Petitioner: Generoso
Respondent: Villanueva
Citation: G.R. No. 157318
Court: Supreme Court
Division: Second Division
Ponente: Puno, J.
Decided: August 9, 2006

Summary

This case involves a land purchase agreement between the Villanueva brothers and the Estate of Gonzaga for subdivided lots mortgaged with PNB. The Estate rescinded the MOA claiming non-payment by petitioners after allegedly securing PNB's release of the mortgage. However, the Supreme Court found that the PNB's April 1991 'approval' was merely conditional, with actual release occurring only in July 1991. The Court ruled that respondents' demand for payment in April 1991 was premature since they had not yet fulfilled their obligation to secure the lots' release from mortgage. Distinguishing between contracts to sell and contracts of sale, the Court held that Article 1191 rescission provisions do not apply to contracts to sell. The MOA was a conditional contract to sell where ownership would not pass until full payment, conditioned on mortgage release. The Deed of Rescission was declared without legal effect, and parties were restored to their original positions.

Statutes applied

Civil Code, Art. 1191

Related cases

Other Philippine cases on the same provisions and issues.

Spouses Alexander v. Kodak Philippines G.R. No. 167615
Estelita Villamar v. Balbino Mangaoil G.R. No. 188661
Spouses Fernando v. Continental Airlines G.R. No. 188288
Vicelet Lalicon v. National Housing Authority G.R. No. 185440
Heirs of Sofia Quirong v. Development Bank of the Philippines G.R. No. 173441
Unlad Resources Development Corporation v. Renato P. Dragon G.R. No. 149338
Victoria Ong v. Ernesto Bogñalbal G.R. No. 149140
Visayan Sawmill Company v. The Honorable Court of Appeals G.R. No. 83851

By the Intellegal Editorial Board · August 9, 2006

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