- Petitioner
- Integrated Credit
- Respondent
- Cabreza
- Citation
- G.R. No. 203420
- Court
- Supreme Court
- Decided
- February 15, 2021
Validity of Memorandum of Agreement as contract of sale, proper rescission under Maceda Law, and competing claims over foreclosed property
Summary
This case involves a complex property dispute arising from a foreclosed real estate. After ICCS acquired the property through foreclosure, it entered into a Memorandum of Agreement allowing the original owner Cabreza to repurchase through installments. When payments became delinquent, ICCS attempted to rescind and sold to third parties (spouses Gan). The Supreme Court classified the MOA as a contract of sale governed by the Maceda Law, found the rescission invalid due to procedural non-compliance, but equitably upheld the sale to the Gans while ordering ICCS to refund payments to Cabreza. The decision balances legal technicalities with practical resolution of a 25-year dispute, emphasizing proper compliance with consumer protection laws in real estate transactions.