Coronel v.

CA
Facts:
Romulo Coronel executed a document entitled Receipt of Downpayment in
favor of Ramona Patricia Alcaraz for P50,000 downpayment of the amount of
P1.24M as purchase pricefor an inherited house and lot, without reservation to
withhold the transfer of such property untilfull payment. The purpose of such
downpayment was for the heirs to transfer the title to their name. Upon
the registration of the property to name of the heirs, the Coronels sold the
same property to Catalina B. Mabanag for P1.58M. The Coronels rescinded the
contract with Alcaraz by depositing the downpayment amount in a bank account in
favor of Alcaraz. Alcaraz filed acomplaint for specific performance, which the trial
and the appellate court ruled in her favor.
Issue:
Whether the receipt of downpayment serves a contract to sell or a
conditional contractof sale.
Held:
The agreement is a contract of sale as there was no express reservation of
ownership or title to the subject parcel of land. Petitioners did not merely promise
to sell the property to private respondent upon the fulfillment of the suspensive
condition but on the contrary, havingalready agreed to sell the subject property,
they undertook to have the certificate of title changedto their names and
immediately thereafter, to execute the written deed of absolute sale. Thesuspensive
condition was fulfilled on 6 February 1985 and thus, the conditional contract of
sale between the parties became obligatory, the only act required for the
consummation thereof beingthe delivery of the property by means of the execution
of the deed of absolute sale in a publicinstrument, which petitioners unequivocally
committed themselves to do as evidenced by theReceipt of Down Payment.