ARTICLE 1590 AND 1591 (REPORTER: Ramirez, Maria Hannah Kristen P.

Article 1590. Should the vendee be disturbed in the possession or ownership of the thing
acquired, or should he have reasonable grounds to fear such disturbance, by a vindicatory action
or a foreclosure of mortgage, he may suspend the payment of the price until the vendor has
caused the disturbance or danger to cease, unless the latter gives security for the return of the
price in a proper case, or it has been stipulated that, notwithstanding any such contingency, the
vendee shall be bound to make the payment. A mere act of trespass shall not authorize the
suspension of the payment of the price.

Right of the vendee to suspend the payment price

The vendee, under this article, may suspend the payment of the price in two (2) instances:
1. If he is disturbed in the possession or ownership of the thing brought; or
2. If he has a well-grounded fear that his possession or ownership would be disturbed by:
a. vindicatory action; or
b. foreclosure of mortgage.
EFFECT:
The vendee is entitled To RETAIN THE PRICE that has not been paid to the vendor. He is not
entitled to recover what has already been paid. Under the second case, it is not necessary that an action
be brought against the vendee.

When the vendee has no right to suspend the payment of the price

In the following cases, the vendee cannot suspend the payment of the price even if there
is disturbance in his possession or ownership of the thing sold:
1. If the vendor gives security for the return of the price in a proper case;
2. If it has been stipulated that notwithstanding any such contingency, the vendee must
make payment.
3. If the vendor has caused the disturbance or danger to cease;
4. If the disturbance is a mere act of trespass;
5. If the vendee has fully paid the price.
Right of the vendee to demand rescission
If the DISTURBANCE is caused by the existence of a NON-PAYMENT SERVITUDE (Art. 1560),
the remedy is RESCISSION not suspension of payment.

Article 1591. Should the vendor have reasonable grounds to fear the loss of immovable property
sold and its price, he may immediately sue for the rescission of the sale. Should such ground not
exist, the provisions of article 1191 shall be observed (1503)

• Refers only to a sale of IMMOVABLE PROPERTY.

When has the right to rescind?

If the vendor has good reasons to fear the loss of the property and its price.
Instances that the property and the price will be lost:
1. Vendee destroys the building sold (not yet paid in full);
2. Pulls out plants on the land;
3. The vendee places himself on the brink of insolvency.

2nd Paragraph of 1591:

“Should such ground not exist, the provisions of Article 1191 shall be observed.”
1591:
There are reasonable grounds to fear the loss of the immovable property sold and its
price.
1191:
The vendor may sue for either fulfillment or rescission with damages in either case.
Vendees failure to comply with his obligation to pay the agreed price. However, rescission is
allowed only where the breach is substantial and fundamental to the fulfillment of the obligation.