Court of Appeals parties’ obligation that would justify the
494 SCRA 570 (Art. 1169) rescission of the contract of sale? THERE IS DELAY IN BOTH PARTIES (compensation Facts: morae) For the purchase price of 3.7M, Villa Esperanza Development Corporation (vendee) and Held: Antonio Cortes (vendor) entered into a contract Cortes avers that he delivered the TCT’s of sale over the lots located at Baclaran, through the broker’s son. He further avers that Parañaque, Metro Manila. The Corporation the broker’s son delivered it to the broker, who advanced to Cortes the total sum of in turn delivered them to the Corporation. P1,213,000.00. In September 1983, the parties executed a deed of absolute sale on the Marcosa Sanchez’s unrebutted testimony is that, following terms: she did not receive the TCTs. She also denied The Corporation shall advance 2.2 M as knowledge of delivery thereof to her son, downpayment, and Cortes shall likewise deliver Manny. the TCT for the 3 lots. The balance of 1.5M shall be payable within a What further strengthened the findings of the year from the date of the execution. Court of Appeals that Cortes did not surrender the subject documents was the offer of Cortes’ The Corporation filed the instant case for counsel at the pre-trial to deliver the TCTs and specific performance seeking to compel Cortes the Deed of Absolute Sale if the Corporation to deliver the TCTs and the original copy of the will pay the balance of the down payment. Deed of Absolute Sale. According to the Indeed, if the said documents were already in Corporation, despite its readiness and ability to the hands of the Corporation, there was no need pay the purchase price, Cortes refused delivery for Cortes’ counsel to make such offer. of the sought documents. It prayed for damages, attorney’s fees and litigation expenses. Cortes Considering that their obligation was reciprocal, claimed that the owner’s duplicate copy of the performance thereof must be simultaneous. The three TCTs were surrendered to the Corporation mutual inaction of Cortes and the Corporation and it is the latter which refused to pay in full therefore gave rise to a compensation morae or the agreed down payment. default on the part of both parties because neither has completed their part in their RTC rendered a decision rescinding the sale reciprocal obligation. Cortes is yet to deliver the and directed Cortes to return to the Corporation original copy of the notarized Deed and the the amount of P1,213,000.00, plus interest. TCTs, while the Corporation is yet to pay in full the agreed down payment of P2,200,000.00. CA reversed the decision and directed Cortes This mutual delay of the parties cancels out the to execute a Deed of Absolute Sale conveying effects of default, such that it is as if no one is the properties and to deliver the same to the guilty of delay. Corporation together with the TCTs, simultaneous with the Corporation’s payment of Under Article 1169 of the Civil Code, from the balance of the purchase price of the moment one of the parties fulfills his P2,487,000.00. obligation, delay by the other begins. Since Cortes did not perform his part, the provision of Issue: the contract requiring the Corporation to pay in WON Cortes delivered the TCTs and the full the down payment never acquired original Deed to the Corporation? NO. obligatory force. WON there is delay in the performance of the