Angeles V Calasanz

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Angeles v.

Calasanz
G.R. No. L-42283, March 18, 1985, 135 SCRA 323

FACTS:

Ursula and Tomas Calasanz sold a piece of land to Buenaventura Angeles and
Teofila Juani covered by a contract to sell. Angeles paid a down payment upon
the execution of the contract and started paying the balance in monthly
installments for nine years with only a few remaining installments left to pay.
Although Calasanz accepted late payments before, Angeles was now five
months late. Calasanz demanded payment of past due accounts, but did not
receive any. Eventually, Calansanz canceled the said contract and Angeles
asked for reconsideration, but was denied.

A provision in the contract to sell gave Calasanz the right to cancel the contract
and consider the amounts paid as rent for the property. However, the lower court
ruled that the contract was not validly canceled and ordered Calasanz to execute
a final Deed of Sale in favor of Angeles.

ISSUE:

Was the contract to sell validly canceled?

RULING:

No. The act of a party in treating a contract as canceled or resolved on account


of infractions by the other must be made known to the other and is always
provisional, being ever subject to scrutiny and review by the proper court. If the
other party denies that rescission is justified, it is free to bring the matter to court.
Then, should the court decide that the resolution of the contract was not
warranted, the responsible party will be sentenced to damages; in the contrary
case, the resolution will be affirmed and indemnity awarded to the party
prejudiced.

The right to rescind the contract for non-performance of one of its stipulations is
not absolute. The general rule is that rescission of a contract will not be permitted
for a slight or casual breach, but only for such substantial and fundamental
breach as would defeat the very object of the parties in making the agreement.
The question of whether a breach of a contract is substantial depends upon the
attendant circumstances.

The breach of the contract alleged by Calasanz is so slight considering that


Angeles had already paid monthly installments for almost nine years. In only a
short time, the entire obligation would have been paid.

To mitigate the unilateral act of Calasanz in cancelling the contract, Article 1234
of the Civil Code provides that: If the obligation has been substantially performed
in good faith, the obligor may recover as though there had been a strict and
complete fulfillment, less damages suffered by the obligee.

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