Sps. Ricardo B. Villamil… · G.R. 88331

Petitioner: Sps. Ricardo B. Villamil
Respondent: The Honorable Court of Appeals (Former 16Th Division)
Citation: G.R. No. 88331
Court: Supreme Court
Division: First Division
Ponente: Cruz, J.
Decided: May 8, 1992

Summary

Contract interpretation dispute over Agreement to Sell real property worth P3.5 million. Buyer Lim placed required P1 million as time deposit with seller's family bank, but sellers Villamil claimed contract required legal trust arrangement. When Lim tendered payment, sellers refused and sold to other buyers. All three court levels ruled for Lim, interpreting 'in trust' provision in ordinary sense rather than strict legal concept. Supreme Court emphasized contract interpretation principle that ambiguous terms resolve against drafter, found sellers acted in bad faith after benefiting from deposits, and awarded specific performance compelling sale to original buyer.

Statutes applied

Civil Code, Art. 1377

Related cases

Other Philippine cases on the same provisions and issues.

Pentacapital Realty Corporation v. Antonio M. Siojo G.R. No. 205347
Tom Tan v. Heirs of Antonio F. Yamson G.R. No. 163182
Martha R. Horrigan v. Troika Commercial G.R. No. 148411
Western Shipyard Services v. Court of Appeals G.R. No. 110340
Security Bank & Trust Company v. Court of Appeals G.R. No. 115997
Rizal Surety & Insurance Company v. Court of Appeals G.R. No. 112360
Finman General Assurance Corporation v. The Honorable Court of Appeals G.R. No. 100970

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By the Intellegal Editorial Board · May 8, 1992

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