Angeles V Calasanz
Angeles V Calasanz
Angeles V Calasanz
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:
RULING:
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.
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.