Conchita A. Sonley v. Anchor Savings Bank/Equicom Savings Bank

Summary

This case involves a real estate contract dispute where buyer Conchita Sonley defaulted on a Contract to Sell with Anchor Savings Bank for a foreclosed property worth P2.2 million. After initial default, parties entered a Compromise Agreement allowing repurchase for a reduced amount, which was approved by the trial court as a final and executory judgment. When Sonley again defaulted on the compromise terms, the bank sought execution for rescission and eviction. The Supreme Court applied Civil Code Article 2041, ruling that no separate rescission action was required, and that the aggrieved party could enforce the compromise or regard it as rescinded. The Court affirmed the rescission of both agreements and ordered Sonley's immediate eviction, finding that her total payments of P497,412.76 could be applied as rental for her extended occupation of the 126.5-square meter property since 2007.