Jane Ong v. Heirs of Spouses Clemente Gloria

Summary

This case involves a property dispute where petitioners Jane Ong and Spouses Co purchased land from Raul Gloria, but the heirs of the original owners (respondents) challenged the sale. The parties entered into a court-approved Compromise Agreement where respondents would repurchase the land for PHP5.5 million by August 8, 2012. When respondents failed to pay, petitioners filed eviction proceedings instead of seeking execution of the monetary obligation. Respondents then filed a new case seeking annulment of the original sale. The Supreme Court affirmed the Court of Appeals' ruling that the Compromise Judgment was effectively rescinded by petitioners' conduct, allowing respondents to pursue their original claim under Article 2041 of the Civil Code. The case establishes that parties to a compromise agreement can either enforce it through execution or regard it as rescinded and pursue their original demand when the other party breaches the compromise terms.