Julio C. Abella v. Guillermo B. Francisco

Summary

The Supreme Court affirmed the lower court's decision absolving defendant Francisco from plaintiff Abella's complaint for specific performance of a land sale contract. Abella had paid P915.31 toward lots in Tala Estate but failed to pay the remaining balance by the December 15, 1928 deadline (extendible 15 days). When Abella attempted to complete payment on January 9, 1929, defendant's attorney-in-fact refused and returned all payments. The Court held that time was an essential element of the contract, whether characterized as an option or sale, because defendant needed the payment to meet his own December 1928 obligations. Under Article 1124 of the Civil Code, defendant was entitled to rescind the contract for non-payment within the specified time. The case establishes the principle that when time is of the essence in a contract, strict compliance with payment deadlines is required, and failure to perform timely allows the non-breaching party to rescind.