- Petitioner
- Gotesco Properties
- Respondent
- Spouses Eugenio
- Citation
- G.R. No. 201167
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Perlas-Bernabe, J.
- Decided
- February 27, 2013
Summary
Spouses Fajardo contracted to buy a subdivision lot from Gotesco Properties, Inc. for P126,000 under a 10-year payment scheme. Despite full payment in January 2000, GPI failed to deliver the deed and title due to technical description issues and legal proceedings. The Supreme Court affirmed that GPI substantially breached the contract, warranting rescission under Civil Code Article 1191. Following the Solid Homes doctrine, the Court ordered restitution at prevailing market value rather than just the original purchase price to prevent unjust enrichment. However, individual corporate directors were absolved from personal liability absent malice or bad faith. The case demonstrates protection of subdivision buyers under PD 957 and principles of mutual restitution in rescission cases.