G.R. No. L-26578 January 28, 1974 Legarda Hermanos and Jose Legarda, petitioners vs.

Felipe Saldaña and Court of Appeals, respondent FACTS: Saldaña bought two lots from the Legarda Hermanos Subdivision on the installment plan (120 installments). After paying for 95 installments for each lot, he stopped payment, but five years later, he wanted to resume payment. The Subdivision Company informed him that the contracts had been cancelled and the payments forfeited conformably with the terms of the contract. Saldaña was able to prove, however, that considering the total amount he had paid, the same already covered the full purchase price of one lot. ISSUE: Whether or not Saldaña can get one lot? HELD: Yes. The Court ruled that, “regardless, however, of the propriety of applying Art. 1592 of the Civil Code, the giving by the company of one lot to Saldaña, and the cancellation of the contract pertaining to the other lot, does not deny substantial performance, for, according to Art. 1234 of the Civil Code: “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”…