Megaworld Globus Asia v. Mila · G.R. 181206

Petitioner: Megaworld Globus Asia
Respondent: Mila S. Tanseco
Citation: G.R. No. 181206
Court: Supreme Court
Division: Second Division
Decided: October 9, 2009

Summary

This case involves a pre-selling condominium contract between Megaworld and buyer Tanseco. Despite Tanseco's faithful payment of installments, Megaworld failed to deliver the unit by the October 31, 1998 deadline or the 6-month grace period. When Megaworld attempted delivery in 2002, Tanseco demanded refund instead. The Supreme Court ultimately ruled in favor of Tanseco, applying Civil Code provisions on reciprocal obligations and finding that the 1997 financial crisis was not force majeure for a real estate developer. The Court ordered cancellation of the contract, full refund with interest, and damages. This decision reinforces buyer protection in pre-selling arrangements and establishes important precedents regarding force majeure in real estate contracts, while emphasizing the need to deter unfair practices in the growing pre-selling industry.

Statutes applied

Civil Code, Art. 1169

Related cases

Other Philippine cases on the same provisions and issues.

Trans-Asia Shipping Lines v. Court of Appeals G.R. No. 118126
Republic of the Philippines v. Great Riverland Development Corporation G.R. No. 218455
Felicito Garcia v. Jolliville Group Management G.R. No. 229286
Ek Lee Steel Works Corporation v. Manila Castor Oil Corporation G.R. No. 119033
Antonio R. Cortes (In His Capacity As Administrator of the Estate of Claro S. Cortes) v. Hon. Court of Appeals G.R. No. 126083
Heirs of Jesus M. Mascuñana v. Court of Appeals G.R. No. 158646
Santos Ventura Hocorma Foundation v. Ernesto V. Santos G.R. No. 153004
Olivia M. Navoa v. Court of Appeals G.R. No. 59255

By the Intellegal Editorial Board · October 9, 2009

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