- Petitioner
- Alexander "Alex" Macasaet
- Respondent
- R. Transport Corporation
- Citation
- G.R. No. 172446
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Tinga, J.
- Decided
- October 10, 2007
Summary
R. Transport Corporation entered into a deed of sale with assumption of mortgage with Alexander Macasaet for four passenger buses worth P12,000,000. After delivering two buses, Macasaet failed to pay the purchase price despite repeated demands. R. Transport successfully recovered possession through replevin proceedings. The Supreme Court held that while the contract was perfected by mutual consent, it should be rescinded due to Macasaet's non-payment of the purchase price, constituting breach of his reciprocal obligation. The Court awarded R. Transport damages of P1,460,000 representing reasonable compensation for Macasaet's use of the buses, computed based on the Special Trip Contract rental rates of P10,000 per day per bus for the period from October 16, 1995 to January 2, 1996, minus amounts already paid. The decision clarifies the distinction between contract perfection and consummation, and the right to rescission under Article 1191 of the Civil Code for failure to comply with reciprocal obligations.