G.G. Sportswear Mfg. Corp. v. World Class Properties

Summary

GG Sportswear purchased a condominium penthouse unit from World Class Properties for P89.6 million but sought rescission and refund after experiencing financial difficulties and claiming dissatisfaction with the completion date. The HLURB initially granted the refund citing lack of proper licensing when the agreement was signed, but the Court of Appeals reversed this decision. The Supreme Court affirmed the CA ruling, holding that World Class did not substantially breach the agreement, the complaint was premature since completion deadlines had not yet passed, and the initial absence of licensing only warranted administrative penalties rather than contract nullification. The Court emphasized that GG Sportswear, having paid only 21% of the purchase price while experiencing payment delays, was actually the party in breach. The decision clarified that under P.D. No. 957, buyers cannot demand refunds for developer's failure to develop until completion deadlines have actually lapsed, and that lack of initial licensing certificates does not automatically void otherwise valid contracts.