Oscar A. Jacinto v. Rogelio Kaparaz

Summary

This case involved a 1966 land sale agreement where buyers (Jacintos) were to pay P1,800.00 for 600 square meters in installments to DBP for sellers' (Kaparazes) loan account. After buyers made payments totaling P1,100.00 but with some delays, sellers refused to execute the final deed claiming breach. The trial court ruled for buyers, but the Court of Appeals reversed, declaring the agreement extinguished. The Supreme Court reinstated the trial court decision, holding this was an absolute sale contract, not a conditional sale. The Court ruled that sellers failed to make proper demand for rescission under Article 1592, buyers' delays constituted only casual breach insufficient for rescission, and buyers had actually overpaid. This decision clarifies the distinction between contracts of sale versus contracts to sell and the procedural requirements for rescission of real estate sales under the Civil Code.