[G.R. No. 80479. July 28, 1989.] AGUSTINA LIQUETTE TAN, petitioner, vs. COURT OF APPEALS AND SPS.

MARIANO SINGSON and ISITACION SINGSON, respondents. Noe Villanueva for petitioner. Jose eltran for private respon!ents.

su5;e4t of t2e sale an! 2a! alrea!y !e7an!e! t2at petitioner pay t2e full a7ount of t2e pur42ase pri4e, t2e petitioner 7ust 5e 4onsi!ere! as 2avin6 in4urre! in !elay. 8. (-.* (-.* R.%'8 +9 '+N,R%',* R.0.-# %V%($% $. ,+ %GGR(.V.- /%R,#. 1 ,2e 5rea42 of a 4ontra4t 6ives t2e a66rieve! party un!er t2e la3 an! even un!er 6eneral prin4iples of fairness, t2e ri62t to res4in! t2e 4ontra4t or to as: for spe4ifi4 perfor7an4e. 9. (-.* (-.* V+(-% $. '+N,R%',* '+N".N, 0&", . + ,%(N.,8R+&G8 (N"(-(+&" )+R-" +R 0%'8(N%,(+N". 1 ,2e 4ontra4t of sale is not voi!a5le 32ere no evi!en4e 3as s2o3n t2at t2rou62 insi!ious 3or!s or 7a42inations un!er %rti4le 1>>8 of t2e 'ivil 'o!e, t2e seller 2a! in!u4e! t2e 5uyer to enter into t2e 4ontra4t. 10. (-.* (-.* '+&R,, )(,8 -("'R.,(+N%R# /+).R ,+ %$$+) % /.R(+)(,8(N )8('8 %N + $(G%,(+N 0%# . /.R9+R0.-. 1 ,2e 'ourt is 6iven a !is4retionary po3er to allo3 a perio! 3it2in 32i42 a person in !efault 7ay 5e per7itte! to perfor7 2is o5li6ation. -.'("(+N '+R,.", J pD ,2e instant petition for revie3 raises t2e 7ain issue of 32et2er t2e private respon!ents 4o77itte! a su5stantial 5rea42 of t2eir o5li6ation so as to 3arrant petitioner=s e<er4ise of 2er ri62t to res4in! t2e 4ontra4t of sale un!er %rti4le 1191 of t2e 'ivil 'o!e. ,2e ante4e!ents of t2e instant 4ontroversy 2a! 5een su77ariEe! in t2e respon!ent 4ourt=s !e4ision FF as follo3sD <<< <<< <<<

"#$$% &" 1. '(V($ $%)* + $(G%,(+N" %N- '+N,R%',"* R."'(""(+N* /+).R ,+ R."'(N-* (0/$(.- (N R.'(/R+'%$ + $(G%,(+N". 1 ,2at t2e po3er to res4in! o5li6ations is i7plie! in re4ipro4al ones in 4ase one of t2e o5li6ors s2oul! not 4o7ply 3it2 32at is in4u75ent upon 2i7 is 4lear fro7 a rea!in6 of t2e 'ivil 'o!e provisions. 2. (-.* (-.* (-.* 8+) .99.',.-. 1 (n t2e a5sen4e of a stipulation to t2e 4ontrary, t2is po3er 7ust 5e invo:e! ;u!i4ially* it 4annot 5e e<er4ise! solely on a party=s o3n ;u!67ent t2at t2e ot2er 2as 4o77itte! a 5rea42 of t2e o5li6ation. >. (-.* (-.* (-.* %$$+).- +N$# (N '%". +9 "& ",%N,(%$ R.%'8. 1 Res4ission 3ill not 5e per7itte! for a sli62t or 4asual 5rea42 of t2e 4ontra4t 5ut only for su42 5rea42es as are so su5stantial an! fun!a7ental as to !efeat t2e o5;e4t of t2e parties in 7a:in6 t2e a6ree7ent. 4. (-.* (-.* (-.* (-.* -.,.R0(N%,(+N +9 "& ",%N,(%$ R.%'8 %--R."".- ,+ ,8. "+&N- -("'R.,(+N +9 ,8. '+&R,. 1 % 4ourt, in !eter7inin6 32et2er res4ission is 3arrante!, 7ust e<er4ise its !is4retion ;u!i4iously 4onsi!erin6 t2at t2e ?uestion of 32et2er a 5rea42 of a 4ontra4t is su5stantial !epen!s upon t2e atten!ant 4ir4u7stan4es. @. (-.* (-.* (-.* "$(G8, -.$%# (N ,8. /.R9+R0%N'. +9 + $(G%,(+N )8.R. ,(0. (" N+, +9 ,8. ."".N'., N+, % GR+&N-. 1 )2ere ti7e not t2e essen4e in t2e a6ree7ent, a sli62t !elay on t2e part of t2e party in t2e perfor7an4e of t2eir o5li6ation, is not suffi4ient 6roun! for t2e resolution of t2e a6ree7ent 7ore so 32en t2e !elay 3as not totally attri5uta5le to t2e7. A. (-.* (-.* 9%($&R. +9 % ,8(R- /.R"+N ,+ 9&$9($$ ,8. '+N-(,(+N +9 % '+N,R%', )($$ N+, /R.J&-('. ,8. R(G8," +9 ,8. + $(G+R )8+ 8%V. "& ",%N,(%$$# '+0/$(.- )(,8 8(" + $(G%,(+N. 1 )2ere t2e fulfill7ent of t2e 4on!ition Bin a 4on!itional o5li6ationC !oes not !epen! on t2e 3ill of t2e o5li6or, 5ut on t2at of a t2ir! person, t2e o5li6or=s part of t2e 4ontra4t is 4o7plie! 3it2, if 2e !oes all t2at is in 2is po3er an! it t2en 5e4o7es in4u75ent upon t2e ot2er 4ontra4tin6 party to 4o7ply 3it2 t2e ter7s of t2e 4ontra4t. 7. (-.* (-.* -.$%# (" (N'&RR.- # % /%R,# # % -.0%N- 0%-. # ,8. +,8.R ,+ 9&$9($$ + $(G%,(+N. 1 )2ere t2e sellers are rea!y, 3illin6 an! a5le to 4o7ply 3it2 t2eir o5li6ation to !eliver title to t2e property

,2e evi!en4e s2o3s t2at !efen!antsGappellants spouses Bprivate respon!ents 2ereinC are t2e o3ners of a 2ouse an! lot lo4ate! at No. >4 .aster Roa!, a6uio 'ity, an! 4overe! 5y ,.'.,. No. ,G1>82A, 32i42 3ere t2en for sale. +n June 14, 1984, plaintiffGappellee to6et2er 3it2 2er a6ent 3ent to see sai! spouses at t2eir resi!en4e re6ar!in6 t2e property. %fter appellants 2a! s2o3n appellee aroun! t2e 2ouse an! 2a! 4onversation a5out t2e en4u75ran4es an!Hor liens on t2e property, t2e parties finally a6ree! on t2e pri4e of /1,800,000.00, 3it2 appellee to a!van4e earnest 7oney of /200,000.00 to ena5le appellants to se4ure t2e 4an4ellation of t2e 7ort6a6e an! lien annotate! on t2e title of t2e property an! t2e 5alan4e of t2e pri4e to 5e pai! 5y appellee on June 21, 1984. 9ort23it2, appellee 2an!e! to appellants a 42e4: for /200,000.00 an! t2ereupon t2e parties si6ne! a re4eipt B.<2. %C in t2e follo3in6 tenorD <<< <<< <<<

(n turn, appellants 2an!e! to appellee a <ero< 4opy of t2e title an! ot2er papers pertainin6 to t2e property as 3ell as an inventory of t2e furnis2in6s of t2e 2ouse t2at are in4lu!e! in t2e sale. ,2ere B>C !ays t2ereafter, i.e., on

June 17, 1984, appellee returne! to appellants= 2ouse to6et2er 3it2 2er !au62ter 'oraEon an! one (nes, to as: for a re!u4tion of t2e pri4e to /1,7@0,000.00 an! appellants spouses a6ree!, an! so anot2er re4eipt entitle! I%6ree7entI B.<2. C 3as si6ne! 5y t2e parties as follo3sD <<< <<< <<<

t2e pu5li4 lan! use! as !rive3ay 2as lon6 5een a3ar!e! an! fully pai! for t2e 'ity of a6uio. (n s2ort, t2e title 4an no3 5e transferre! in your na7e upon e<e4ution of t2e 4ontra4t of sale. . . #our refusal 3ill 4o7pel &s to sue for spe4ifi4 perfor7an4e . . .I efore appellants 4oul! 7a:e 6oo! t2eir t2reat, appellee I;u7pe! t2e 6unI, so to spea:, upon t2e7 5y filin6 in 4ourt on %u6ust 27, 1984 t2e 4ase for re4overy of su7 of 7oney 3it2 !a7a6es 32i42 is no3 t2is 4ase on appeal 5efore us. (n 2er 4o7plaint, appellee alle6e! t2at s2e 6ave appellants spouses /200,000.00 upon t2eir assuran4es t2at t2ey 4oul! transfer to 2er t2e 2ouse an! lot s2e 3as 5uyin6 fro7 t2e7 free fro7 any liens an! en4u75ran4es, in4lu!in6 t2e furnis2in6s t2ereof an! t2e a!;a4ent lot 5ein6 use! as !rive3ay, on June 2@, 1984, 5ut t2at !ay 2a! 4o7e an! passe! 3it2out appellants 5ein6 a5le to 7a:e 6oo! t2eir pro7ise, 5e4ause s2e I!is4overe! to 2er s2o4: an! !is7ay t2at s2e 2a! 5een !ealt 3it2 in 5a! fait2 5y !efen!antsI as t2e 7ort6a6e on t2e property 3as not release! or 4an4elle! an! t2e !rive3ay 3as still pu5li4 lan! an! 4oul! not 5e vali!ly transferre! to 2er as any !isposition t2ereof 3oul! yet re?uire approval 5y t2e "e4retary of %6ri4ulture an! Natural Resour4es. 8en4e, t2e suit a6ainst appellants spouses for re4overy of t2e /200,000.00 earnest 7oney 32i42 is, in essen4e an! 4on4ept, one for res4ission 3it2 !a7a6es. <<< <<< <<<

,2e very sa7e !ay t2at appellants re4eive! t2e earnest 7oney of /200,000.00, t2ey starte! payin6 t2eir 7ort6a6e loan 3it2 t2e -evelop7ent an: of t2e /2ilippines B- /C to 4lear up t2e title of t2e su5;e4t property. +n June 14, 1984, appellants pai! t2e 5an: />0,000.00 per re4eipt, .<2i5it * on June 18, 1984 anot2er /@0,000.00 B.<2. 4G4C* on June 29, 1984, /20,000.00 B.<2. 4G-C* an! on July @, 1984, /70,909.@9 an! anot2er /19,88A.A0 B.<2s. 4G9 an! 4GGC in full pay7ent of t2e 7ort6a6e loan. +n July 9, 1984, t2e - / e<e4ute! a 4an4ellation of 7ort6a6e, 32i42 3as re6istere! 3it2 t2e Re6istry of /roperty of a6uio 'ity in July 12, 1984. %ppellants also pai! all t2e ta<es !ue an! in arrears on t2e property. (t li:e3ise appears t2at appellants pai! in full on July 17, 1984 t2e 4ost pri4e of t2e >>8 s?uare 7eter lot 32i42 3as a3ar!e! to appellant Visita4ion "in6son per 2er to3nsite sale appli4ation for sai! property. %n! t2e re?uest of t2e 'ity "2eriff of a6uio 'ity to lift t2e noti4e of levy in e<e4ution !ate! 9e5ruary 2, 1978 in 'ivil 'ase No. JG10202, /io ". %4a7pa!o, et al. v. 0ariano -. "in6son, et al., 3as !uly annotate! on t2e 5a4: of ,', No. ,G 1>82A on %u6ust 2, 1979. +n June 2@, 1984, appellee a44o7panie! 5y 2er !au62ter 'oraEon an! 2er la3yer, %tty. Vi4ente Juitoriano, 3ent to a6uio 'ity to in?uire a5out t2e status of t2e property an! appellants tol! 2er t2at t2e -evelop7ent an: of t2e /2ilippines 3as ta:in6 so7e ti7e pro4essin6 t2eir pay7ents an! preparin6 t2e !ee! of 4an4ellation of t2e 7ort6a6e. +n t2at o44asion, t2e parties a6ree! on an e<tension of t3o B2C 3ee:s for t2e e<e4ution of t2e !ee! of sale. 8ere, t2e parties= respe4tive versions on t2e 7atter parte! 3ays. %44or!in6 to appellants, it 3as appellee 32o as:e! for t2e e<tension 5e4ause s2e 3as not yet rea!y to pay t2e 5alan4e of /1,@@0,000.00. +n t2e ot2er 2an!, appellee sai! t2at it 3as appellants 32o as:e! for it 5e4ause t2e title of t2e property 3as not yet 4leare!. ,2e 4ourt 5elo3 5elieve! appellee 5e4ause on sai! !ate t2e -evelop7ent an: 2a! not yet e<e4ute! t2e !ee! of 4an4ellation of 7ort6a6e, an! no title 2as yet 5een issue! for t2e !rive3ay alt2ou62 alrea!y fully pai! for. (77e!iately, upon e<e4ution 5y t2e - / of t2e !ee! of 4an4ellation of 7ort6a6e of July 9, 1984, appe!!ants tried to "onta"t appe!!ee and#or $er da%&$ter Cora'on to "o(e to )a&%io Cit* +or t$e +or(a! e,e"%tion o+ t$e deed o+ sa!e, -%t to no avai! . (nstea!, appellants re4eive! a tele6ra7 fro7 %tty. Juitoriano 4an4ellin6 t2e sale an! !e7an!in6 t2e return of t2e /200,000.00 earnest 7oney. %ppellants 4ountere! 3it2 a letter of t2eir la3yer, %tty. ,eofisto Ro!es, 4allin6 on appellee to perfor7 2er part of t2e 4ontra4t 5e4ause It2e title to t2e 2ouse an! lot ri62t no3 suffers no i7perfe4tion or !ou5t. ,2e levy on e<e4ution 2as lon6 5een lifte!, t2e 7ort6a6e in!e5te!ness release!, t2e portion of

['% -e4ision, pp. 1GA* Rollo, pp. @>G@7.] ,2e Re6ional ,rial 'ourt 32i42 too: 4o6niEan4e of 'ivil 'ase No. >709GV file! 5y petitioner %6ustina $i?uette ,an ren!ere! a !e4ision !isposin6 of t2e 4ase as follo3sD )8.R.9+R., ;u!67ent is 2ere5y ren!ere! in favor of plaintiff an! a6ainst !efen!antsD B1C +r!erin6 t2e res4ission of t2e 4ontra4ts entere! into 5y an! 5et3een plaintiff an! t2e !efen!ants, 32i42 are e75o!ie! in .<2s. I%I or I1 an! I I or I2I* B2C +r!erin6 t2e !efen!ants, spouses 0ariano "in6son an! Visita4ion "in6son to return to plaintiff t2e /200,000.00 earnest 7oney 6iven 5y 2er to !efen!ants* B>C +r!erin6 t2e !efen!ants to pay plaintiff interest at t2e rate of 12K per annu7 on t2e /200,000.00 fro7 t2e filin6 of t2e 4o7plaint until fully pai!* B4C +r!erin6 t2e !efen!ant Bsi4C to pay plaintiff 7oral !a7a6es in t2e su7 of /@0,000.00* B@C +r!erin6 t2e !efen!ants to pay plaintiff t2e a7ount of /20,000.00 as attorney=s fees* an!

BAC

+r!erin6 t2e !efen!ants to pay t2e 4osts of t2is suit.

"+ +R-.R.-. [Rollo. pp. 49G@0.] /rivate respon!ents interpose! an appeal fro7 sai! !e4ision alle6in6 t2at t2e trial 4ourt erre!. (. . . . in 4onsi!erin6 t2e 4onsent of appellee to t2e a6ree7ent 3as vitiate! 5y frau!. ((. . . . in resolvin6 in favor of t2e appellee t2e sole ri62t of res4ission.

,2e 4ourt s2all !e4ree t2e res4ission 4lai7e!, unless t2ere 5e ;ust 4ause aut2oriEin6 t2e fi<in6 of a perio!. ,2is is un!erstoo! to 5e 3it2out pre;u!i4e to t2e ri62ts of t2ir! persons 32o 2ave a4?uire! t2e t2in6, in a44or!an4e 3it2 arti4les 1>8@ an! 1>88 an! t2e 0ort6a6e $a3. %fter a t2orou62 e<a7ination of t2e alle6ations 4ontaine! in t2e parties= plea!in6s, t$e Co%rt +inds t$e instant petition to -e devoid o+ an* (erit. ,2at t2e po3er to res4in! o5li6ations is i7plie! in re4ipro4al ones in 4ase one of t2e o5li6ors s2oul! not 4o7ply 3it2 32at is in4u75ent upon 2i7 is 4lear fro7 a rea!in6 of t2e 'ivil 'o!e provisions. 8o3ever, it is e?ually settle! t2at, in t2e a5sen4e of a stipulation to t2e 4ontrary, t2is po3er 7ust 5e invo:e! ;u!i4ially* it 4annot 5e e<er4ise! solely on a party=s o3n ;u!67ent t2at t2e ot2er 2as 4o77itte! a 5rea42 of t2e o5li6ation. 1$ere t$ere is not$in& in t$e "ontra"t e(po0erin& t$e petitioner to res"ind it 0it$o%t resort to t$e "o%rts, t$e petitioner2s a"tion in %ni!atera!!* ter(inatin& t$e "ontra"t in t$is "ase is %n3%sti+ied [/2ilippine %7use7ent .nterprises, (n4. v. Nativi!a!, G.R. No. $G1287A. "epte75er 29, 19A7, 21 "'R% 284]. (n t2is 4ase, petitioner re4eive! on July 17, 1984 t2rou62 2er !au62ter 'ora ,an "in6son, a tele6ra7 fro7 private respon!ent Visita4ion "in6son a!visin6 t2e for7er t2at t2e papers for t2e sale of t2e property are rea!y for final e<e4ution. ,2e parties li:e3ise 7et on June 2@, 1984, t2e !ay a6ree! upon for t2e full pay7ent of t2e pur42ase pri4e, an! t2ey a6ree! on a furt2er e<tension of t3o 3ee:s for t2e e<e4ution of t2e !ee! of sale. -espite t2is a6ree7ent, private respon!ents su!!enly re4eive! a tele6ra7 fro7 %tty. Juitoriano, 4ounsel for t2e petitioner, unilaterally stoppin6 t2e sale an! !e7an!in6 t2e return of t2e earnest 7oney pai! 5y petitioner [.<2i5it I9I, +ri6inal Re4or!s, p. 99]. /etitioner, in res4in!in6 t2e sale, 4lai7s t2at a su5stantial 5rea42 of t2e o5li6ation 2as 5een 4o77itte! 5y t2e private respon!ents as in!i4ate! 5y t2e follo3in6 fa4ts prove! to 5e e<istin6 as of t2e !ate a6ree! upon for t2e 4onsu77ation of t2e saleD 1. ,2at no title 2as yet 5een issue! 5y t2e Re6istry of -ee!s of t2e 'ity of a6uio in t2e na7e of eit2er of t2e respon!ents in 4onne4tion 3it2 t2e >>8Gs?uare 7eter lot 32ere t2e !rive3ay is lo4ate!* 2. ,2at t2e private respon!ents 2ave not pai! in full t2e total 4onsi!eration for t2e sai! lot to t2e 'ity of a6uio 5e4ause t2ey 3ere a5le to 4o7plete t2e pay7ent of t2e pur42ase pri4e only on July 17, 1984 as foun! out 5y t2e respon!ent 4ourt in its !e4ision B/lease see pa6e 8 of t2e 'ourt of %ppeals= !e4ision, %nne< I IC*

(((. . . . in 4onsi!erin6 t2e a!;a4ent lot as part of t2e sale a6ree! upon 5y t2e parties. (V. . . . in !e4i!in6 t2e 4ase in favor of t2e appellee an! a3ar!in6 !a7a6es. +n %u6ust 24, 1987, t2e respon!ent 'ourt of %ppeals pro7ul6ate! a !e4ision reversin6 t2at of t2e trial 4ourt, t2e !e4retal portion of 32i42 rea!s as follo3sD )8.R.9+R., t2e appeale! !e4ision is R.V.R".- an! "., %"(-. an! a ne3 one is 2ere5y entere! or!erin6 i77e!iately upon t2e finality of t2is ;u!67ent appellants spouses to execute and sign an absolute deed of sale conveying to appellee free from any lien or encumbrance the house and lot 4overe! 5y ,.'.,. No. 1>82A of t2e Re6istry of -ee!s of a6uio 'ity to6et2er 3it2 t2e furnis2in6s an! applian4es liste! in .<2i5it ' an! t2e a!;a4ent lot use! as !rive3ay 4overe! 5y t2e +r!er of %3ar!, .<2i5it .G> an! appellee to pay appellants spouses t2e su7 of /1,@@0,000.00 plus interest at t2e le6al rate fro7 t2e finality of t2is ;u!67ent until fully pai!. "+ +R-.R.-. [Rollo, p. A1.] /etitioners file! t2e instant petition for revie3 on 4ertiorari assailin6 t2e 4on4lusion of t2e respon!ent 'ourt of %ppeals t2at t2e private respon!ents 2a! not 4o77itte! a su5stantial 5rea42 of t2eir o5li6ation an! t2erefore, t2ere 3as no le6al 5asis for t2e ;u!67ent or!erin6 res4ission of t2e 4ontra4t. /etitioners 7aintain t2at sin4e private respon!ents 3ere not prepare! to 4onvey t2e title to t2e su5;e4t property on t2e !ate a6ree! upon in vie3 of t2e various liens an! en4u75ran4es t2ereon, t2e for7er are entitle! to res4in! t2e 4ontra4t pursuant to %rti4le 1191 of t2e 'ivil 'o!e 32i42 statesD Art. ../.. T$e po0er to res"ind o-!i&ations is i(p!ied in re"ipro"a! ones, in "ase one o+ t$e o-!i&ors s$o%!d not "o(p!* 0it$ 0$at is in"%(-ent %pon $i(. ,2e in;ure! party 7ay 42oose 5et3een t2e fulfill7ent an! t2e res4ission of t2e o5li6ation, 3it2 t2e pay7ent of !a7a6es in eit2er 4ase. 8e 7ay also see: res4ission, even after 2e 2as 42osen fulfill7ent, if t2e latter s2oul! 5e4o7e i7possi5le.

>. ,2at private respon!ents 2ave not a4?uire! t2e Iprevious 4onsent of t2e "e4retary of Natural Resour4esI for t2e sai! transfer to t2e petitioner as re?uire! 5y t2e a3ar!* 4. ,2at t2e restri4tions in!i4ate! in t2e %)%R- 7a:es 32atever 4onveyan4e to 5e 7a!e 5y t2e a3ar!ee of t2e lot 3it2in t2e pro2i5ite! perio! as null an! voi! an! 4oul! 4ause t2e forfeiture of all t2e pay7ents alrea!y 7a!e as 3ell as t2e i7prove7ents intro!u4e! t2erein* @. ,2at t2ere are still liens an! en4u75ran4es insofar as ,', No. ,G 1>82A 4onsistin6 of a 7ort6a6e 3it2 t2e - / an! a noti4e of levy an! )rit of .<e4ution. [Rollo, pp. 14G1@.] %lternatively, petitioner see:s annul7ent of t2e 4ontra4t on t2e 6roun! of frau! sin4e private respon!ents 2a! 7isrepresente! to 2er t2at t2ey 4oul! vali!ly 4onvey title to t2e property su5;e4t of t2e 4ontra4t 32i42 2o3ever is en4u75ere! 3it2 various e<istin6 liens. 1. T$e a!!e&ed -rea"$ o+ t$e o-!i&ation -* t$e private respondents, 0$i"$ "onsists in a (ere de!a* +or a +e0 da*s in "!earin& t$e tit!e to t$e propert*, "annot -e "onsidered s%-stantia! eno%&$ to 0arrant res"ission o+ t$e "ontra"t. % t2orou62 revie3 of t2e re4or!s 4learly in!i4ates t2at private respon!ents 2a! su5stantially 4o7plie! 3it2 t2eir un!erta:in6 of 4learin6 t2e title to t2e property 32i42 2as a total lan! area of 88A s?uare 7eters. (t 7ust 5e pointe! out t2at t2e su5;e4t lot 4onsists of private lan!, 3it2 an area of @48 s?uare 7eters, 4overe! 5y ,', No. ,G1>82A an! of a portion of t2e pu5li4 lan! 32i42 2as 5een a3ar!e! to t2e private respon!ents un!er ,o3nsite "ales %ppli4ation No. 7GA7AG%. )2ile ,', No. ,G1>82A 3as su5;e4t to a 7ort6a6e in favor of - /, private respon!ents, upon re4eipt of t2e earnest 7oney pai! 5y petitioner, utiliEe! t2e sa7e to settle its o5li6ations 3it2 - / t2us ena5lin6 t2e7 to se4ure a 4an4ellation of t2e e<istin6 7ort6a6e, 32i42 3as !uly note! in t2e title to t2e property ["ee +ri6inal Re4or!s, p. 94]. (t is a settle! prin4iple of la3 t2at res"ission 0i!! not -e per(itted +or a s!i&$t or "as%a! -rea"$ o+ t$e "ontra"t -%t on!* +or s%"$ -rea"$es as are so s%-stantia! and +%nda(enta! as to de+eat t$e o-3e"t o+ t$e parties in (a4in& t$e a&ree(ent [&niversal 9oo! 'orporation v. 'ourt of %ppeals, G.R. No. $G291@@, 0ay 1>, 1970, >> "'R% 1* /2ilippine %7use7ent .nterprises, (n4. v. Nativi!a!, supra* Ro?ue v. $apuE, G.R. No. $G>2811, 0ar42 >1, 1980, 9A "'R% 741]. % 4ourt, in !eter7inin6 32et2er res4ission is 3arrante!, 7ust e<er4ise its !is4retion ;u!i4iously 4onsi!erin6 t2at t2e ?uestion of 32et2er a 5rea42 of a 4ontra4t is su5stantial !epen!s upon t2e atten!ant 4ir4u7stan4es ['orpus v. %li:pala, et al., G.R. Nos. $G 2>720 an! $G2>707, January 17, 19A8, 22 "'R% 104]. (n t2is 4ase, as to t2e lot 4overe! 5y ,', No. ,G1>82A, it is true t2at as of June 2@, 1984, t2e !ate set for t2e e<e4ution of t2e final !ee! of sale, t2e 7ort6a6e lien in favor of - / annotate! in t2e title 2as not yet 5een

4an4elle! as it too: - / so7e ti7e in pro4essin6 t2e papers relative t2ereto. 8o3ever, ;ust a fe3 !ays after, or on July 12, 1984, t2e 4an4ellation of t2e - / 7ort6a6e 3as entere! 5y t2e Re6ister of -ee!s an! !uly note! on t2e title. Ti(e not -ein& o+ t$e essen"e in t$e a&ree(ent, a s!i&$t de!a* on t$e part o+ t$e private respondents in t$e per+or(an"e o+ t$eir o-!i&ation, is not s%++i"ient &ro%nd +or t$e reso!%tion o+ t$e a&ree(ent [ ian!o an! .spanto v. .75estro an! ar!a;e, 10@ /2il. 11A4 B19@9C], more so when the delay was not totally attributable to them. %s to t2e noti4e of levy an! e<e4ution annotate! on ,', No. ,G1>82A, a re?uest to lift t2e sa7e 2a! alrea!y 5een file! 3it2 t2e Re6ister of -ee!s an! !uly note! on t2e title [+ri6inal Re4or!s, p. 9@]. ,2e fa4t t2at sai! noti4e 2a! not yet 5een 4an4elle! 5y t2e Re6ister of -ee!s as of June 2@, 1984 4annot pre;u!i4e t2e sellers 32o 7ust 5e !ee7e! to 2ave su5stantially 4o7plie! 3it2 t2eir o5li6ation. ,2e rule in t2is ;uris!i4tion is t2at 32ere t2e fulfill7ent of t2e 4on!ition Bin a 4on!itional o5li6ationC !oes not !epen! on t2e 3ill of t2e o5li6or, 5ut on t2at of a t2ir! person, t2e o5li6or=s part of t2e 4ontra4t is 4o7plie! 3it2, if 2e !oes all t2at is in 2is po3er an! it t2en 5e4o7es in4u75ent upon t2e ot2er 4ontra4tin6 party to 4o7ply 3it2 t2e ter7s of t2e 4ontra4t [%rti4le 1182, 'ivil 'o!e* "7it2 ell an! 'o. v. "otelo 0atti, 44 /2il. 874 B1922C]. +n t2e ot2er 2an!, private respon!ents= interest in t2e pu5li4 lan! use! as a !rive3ay 4an li:e3ise 5e 4onveye! to petitioner alt2ou62 no title 2as yet 5een issue! in t2e na7e of Visita4ion "in6son. "u42 portion of t2e pu5li4 lan! 2as lon6 5een a3ar!e! to "in6son in 1972 an! pay7ent of t2e pur42ase pri4e t2ereof 2as alrea!y 5een 4o7plete! as of July 17, 1984. ,2e fa4t t2at t2e 4onsent of t2e "e4retary of %6ri4ulture an! Natural Resour4es to t2e sale of t2e property to petitioner 2as not yet 5een se4ure! 4annot 5e 4onsi!ere! a su5stantial 5rea42 of private respon!ents= o5li6ation un!er t2e 4ontra4t of sale. (n Juani4o an! arre!o v. %7eri4an $an! 'o77er4ial 'o., (n4., et al. [97 /2il. 221 19@@C], t2is 'ourt 2a! rule! t2at t2e prior approval of t2e "e4retary of %6ri4ulture an! Natural Resour4es is re?uire! only in 4ases of sale an! en4u75ran4e of t2e pu5li4 lan! !urin6 t2e pen!en4y of t2e appli4ation 5y t2e pur42aser an! 5efore 2is 4o7plian4e 3it2 t2e re?uire7ents of t2e la3. ,2usD . . . ut su42 approval 5e4o7es unne4essary after t2e pur42aser 2a! 4o7plie! 3it2 all t2e re?uire7ents of t2e la3, even if t2e patent 2as not 5een a4tually issue!, for in t2at 4ase t2e ri62ts of t2e pur42aser are alrea!y !ee7e! veste!, t2e issuan4e of t2e patent 5ein6 a 7ere 4ere7ony. ,2us, It2e e<e4ution an! !elivery of t2e patent after t2e ri62t to it 2as 5e4o7e 4o7plete, are t2e 7ere 7inisterial a4ts of t2e offi4ers 42ar6e! 3it2 t2at !utyI . . . %n!, as it 2as 5een 2el!, I+ne 32o 2as !one everyt2in6 32i42 is ne4essary in or!er to entitle 2i7 to re4eive a patent for pu5li4 lan! 2as, even 5efore t2e patent is a4tually issue! 5y t2e lan! !epart7ent, a 4o7plete a4?uita5le estate in t2e lan! 32i42 2e 4an sell an!

4onvey, 7ort6a6e or lease. % fortiori a 4ontra4t to 4onvey lan! 7a!e 5efore t2e issuan4e of a patent 5ut after final proof 2as 5een 7a!e an! t2e lan! pai! for is not ille6alI. . . 8ere, sin4e t2e lan! in ?uestion 2a! alrea!y 5een a3ar!e! to private respon!ents sin4e 1972 an! all t2e re?uire7ents of t2e la3 for t2e pur42ase of pu5li4 lan! 3ere su5se?uently 4o7plie! 3it2, private respon!ents, as o3ners of sai! property, 4an properly 4onvey title t2ereto to petitioner. (nas7u42 as t2e private respon!ents are rea!y, 3illin6 an! a5le to 4o7ply 3it2 t2eir o5li6ation to !eliver title to t2e property su5;e4t of t2e sale an! 2a! alrea!y !e7an!e! t2at petitioner pay t2e full a7ount of t2e pur42ase pri4e, t2e petitioner 7ust 5e 4onsi!ere! as 2avin6 in4urre! in !elay. ,2is 4on4lusion is 3arrante! 5y t2e 4lear provision of %rti4le 11A9 of t2e 'ivil 'o!e 32i42 statesD %rt. 11A9. ,2ose o5li6e! to !eliver or to !o so7et2in6 in4ur in !elay fro7 t2e ti7e t2e o5li6ee ;u!i4ially or e<traG;u!i4ially !e7an!s fro7 t2e7 t2e fulfill7ent of t2eir o5li6ation. <<< <<< <<<

3as furnis2e! 3it2 <ero< 4opies of t2e title, at t2e 5a4: of 32i42 3as a 7e7oran!u7 of t2e en4u75ran4es of t2e property [,"N, "epte75er >0, 198@, p. 4]. 9urt2er, it is un!ispute! t2at at t2e ti7e petitioner entere! into t2e a6ree7ent in ?uestion, s2e 3as a44o7panie! 5y 2er !au62ter 'oraEon an! one 0aria $orenEo 32o7 s2e 4oul! 2ave as:e! to e<plain t2e parti4ulars of t2e transa4tion t2at s2e 4oul! not un!erstan! [Rollo, p. A1]. +ne final point, t2e !e4ision of t2e respon!ent 'ourt of %ppeals or!ere! e<e4ution 5y private respon!ents of t2e a5solute !ee! of sale 4onveyin6 t2e su5;e4t property to petitioner an! pay7ent 5y petitioner of t2e 5alan4e of t2e pur42ase pri4e i77e!iately upon finality of su42 ;u!67ent. 8o3ever, un!er t2e t2ir! para6rap2 of %rti4le 1191 of t2e 'ivil 'o!e, t2e 'ourt is 6iven a !is4retionary po3er to allo3 a perio! 3it2in 32i42 a person in !efault 7ay 5e per7itte! to perfor7 2is o5li6ation [Lapisanan ana2a3 v. -e;ar7e an! %lvero, @@ /2il. >>9 B19>0C]. 'onsi!erin6 t2e 2u6e a7ount of 7oney involve! in t2is sale, t2e 'ourt, in t2e e<er4ise of its soun! !is4retion, 2ere5y fi<es a perio! of ninety B90C !ays 3it2in 32i42 petitioner s2all pay t2e 5alan4e of t2e pur42ase pri4e a7ountin6 to one 7illion an! five 2un!re! fifty t2ousan! pesos B/1,@@0,000.00C plus interest t2ereon at t2e le6al rate fro7 finality of t2is ;u!67ent until fully pai!. %fter su42 pay7ent 2as 5een 7a!e, t2e private respon!ents are or!ere! to si6n an! e<e4ute t2e ne4essary a5solute !ee! of sale in favor of petitioner. )8.R.9+R., t2e assaile! !e4ision of t2e respon!ent 'ourt of %ppeals 6rantin6 t2e 4ounter4lai7 for spe4ifi4 perfor7an4e of 2erein private respon!ents is 2ere5y %99(R0.- 3it2 t2e 0+-(9('%,(+N t2at t2e petitioner is 6iven a perio! of ninety B90C !ays 3it2in 32i42 to pay t2e su7 of one 7illion an! five 2un!re! fifty t2ousan! pesos B/1,@@0,000.00C representin6 t2e 5alan4e of t2e pur42ase pri4e, 3it2 interest t2ereon at t2e le6al rate fro7 t2e finality of t2is ;u!67ent until fully pai!. ,2e private respon!ents are or!ere! to si6n an! e<e4ute t2e a5solute !ee! of sale after t2e petitioner 2as 4o7plete! pay7ent of t2e pur42ase pri4e an! t2e interest t2ereon. "+ +R-.R.-. 9ernan, B'.J.C, GutierreE, Jr., 9eli4iano an! i!in, JJ., 4on4ur.

(n re4ipro4al o5li6ations, neit2er party in4urs in !elay if t2e ot2er !oes not 4o7ply or is not rea!y to 4o7ply in a proper 7anner 3it2 32at is in4u75ent upon 2i7. 9ro7 t2e 7o7ent one of t2e parties fulfills 2is o5li6ation, !elay 5y t2e ot2er 5e6ins. (t is 5asi4 t2at t2e 5rea42 of a 4ontra4t 6ives t2e a66rieve! party un!er t2e la3 an! even un!er 6eneral prin4iples of fairness, t2e ri62t to res4in! t2e 4ontra4t or to as: for spe4ifi4 perfor7an4e [Na6ar7ull v. inal5a6anG (sa5ela "u6ar 'o., (n4., G.R. No. $G22470, 0ay 28, 1970, >> "'R% 4A.] /etitioner 2avin6 faile! to 4o7ply 3it2 2er o5li6ation of payin6 t2e 5alan4e of t2e pur42ase pri4e !espite !e7an!s 5y private respon!ents, private respon!ents 3ere 4learly entitle! to t2eir 4ounter4lai7 for spe4ifi4 perfor7an4e, as 4orre4tly a!;u!6e! 5y t2e respon!ent 4ourt. 2. ,2e 4lai7 t2at petitioner=s 4onsent to t2e 4ontra4t 3as vitiate! 5y frau! an!, t2erefore, t2e 4ontra4t in ?uestion is voi!a5le is patently un7eritorious. ,2e 4ontra4t of sale is not voi!a5le 32ere no evi!en4e 3as s2o3n t2at t2rou62 insi!ious 3or!s or 7a42inations un!er %rti4le 1>>8 of t2e 'ivil 'o!e, t2e seller 2a! in!u4e! t2e 5uyer to enter into t2e 4ontra4t B'ara7 v. $aureta, Jr., G.R. No. $G28740, 9e5ruary 24, 1981, 10> "'R% 7]. (n t2is 4ase, t2e evi!en4e on re4or! fully supports t2e fin!in6 of t2e appellate 4ourt t2at private respon!ents !i! not represent to petitioner t2at t2e 2ouse an! lot t2ey 3ere sellin6 3ere free fro7 liens an! en4u75ran4es. Rat2er, t2ey tol! 2er t2at t2e property 3as 7ort6a6e! to t2e - / 32i42 3as 32y t2ey as:e! 2er to a!van4e /200,000.00 as earnest 7oney so t2at t2ey 4oul! settle t2e 7ort6a6e in!e5te!ness an! 4lear up t2e title [Rollo, p. A0]. ,2e testi7ony of petitioner 2erself s2o3s t2at s2e