Cosme Biagtan v. Concepcion Viuda de Oller

Summary

This case involves a breach of barter contract concerning real property. Rafael Oller, who lost his mortgaged land to Philippine National Bank through foreclosure, arranged for Cosme Biagtan to purchase the property from the bank. Subsequently, they entered into a barter agreement where Biagtan would return one parcel to Oller in exchange for five parcels owned by Oller. While Biagtan fulfilled his obligation, Oller only delivered two of five promised parcels before his death, as the remaining parcels were not owned by him or were in third parties' possession. The Supreme Court affirmed the lower court's decision to resolve the barter contract and restore the property to Biagtan, applying Civil Code provisions on barter contracts and reciprocal obligations. The case establishes that in barter contracts, failure to deliver promised property due to lack of ownership or control renders the contract ineffective and allows the aggrieved party to seek resolution and recovery of delivered property.