Olivarez Realty Corporation v. Benjamin Castillo

Summary

The Supreme Court upheld the cancellation of a land sale contract where Olivarez Realty Corporation failed to pay the agreed purchase price and fulfill contractual obligations. Despite the corporation's defenses claiming the seller failed to assist in litigation against a competing claimant and clear tenants from the property, the Court found these defenses sham since the contract clearly placed these responsibilities on the buyer. The Court distinguished between 'conditional sale' and 'contract to sell', ruling this was the latter where cancellation rather than rescission applies. The PhP2.5 million partial payment was forfeited as reasonable compensation for the corporation's 14-year possession of the property. The decision establishes important precedents on summary judgment standards, contract classification, and remedies for breach of sale agreements involving real property.