Sps. Lino Francisco & Guia · G.R. 171312

Petitioner: Sps. Lino Francisco & Guia Francisco
Respondent: Deac Construction
Citation: G.R. No. 171312
Court: Supreme Court
Division: Second Division
Ponente: Tinga, J.
Decided: February 4, 2008

Summary

Spouses Francisco contracted DEAC Construction to build a residential building for P3.5M. DEAC commenced construction without a building permit and made unauthorized deviations from approved plans, including closing required open space and reducing setback. When violations were discovered, Spouses Francisco demanded compliance and withheld final payment. The RTC ordered partial rescission and damages, but the CA reversed, finding the owners authorized the changes. The Supreme Court granted the petition, finding the deviations were unauthorized breaches of contract. Applying Article 1191 of the Civil Code, the Court reinstated the RTC decision ordering partial rescission of the 25% unfinished portion and damages, emphasizing that respondents' failure to secure permits and unauthorized plan changes violated their contractual obligations and justified rescission despite the building being substantially complete.

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 · February 4, 2008

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