Spouses Delfin O. Tumibay v. Spouses Melvin A. Lopez

Summary

This case involved a dispute over the validity of a land sale where the buyer prematurely transferred title without full payment. Petitioner spouses owned land and granted their sister-in-law a Special Power of Attorney to offer it for sale. They later entered an oral contract to sell with respondent Rowena for P800,000.00 payable in installments. After paying only 32.58% of the price, respondent Rowena covertly used the SPA to transfer title to herself without the sellers' knowledge or consent. The Supreme Court ruled this constituted a substantial breach of the contract to sell, entitling the sellers to rescission. The Court found the deed of sale void because the agent acted beyond her authority without ratification. The decision establishes that in contracts to sell, buyers who usurp ownership before full payment commit fundamental breach, and sellers retain the right to rescind such contracts.