Citation
G.R. No. 46343
Court
Supreme Court En Banc
Division
En Banc
Decided
Enero 20, 1940

Summary

This case involves the rescission of a lease contract due to tenant's breach. Jose Avila, tenant of lot 781 in Cebu where he operated Cine Ideal movie theater, failed to pay eight months of rent (P800) to landlords Corazon Ch. Veloso and Antonio C. Torres. The Supreme Court applied Article 1556 of the Civil Code, confirming the tenant's breach justified contract rescission. The Court rejected Avila's defenses that landlords waived their right to punctual payment by previously accepting delayed rent, emphasizing that no consent was given for rent accumulation. The decision established that mere acceptance of delayed payments without consent does not constitute waiver of contractual payment terms, and that collecting money deposited during litigation does not waive rescission rights under the Civil Code.

Statutes applied

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By the Intellegal Editorial Board · Enero 20, 1940

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