Cortes vs CA

CORTES vs. Court of Appeals

o2l"at"o' t!at oul+ =ust"f t!e resc"ss"o' of t!e co'tract of

494 SCRA 570 (Art. 1169)

sale< T>ERE S E?A@ ; ,OT> -ARTES (co*pe'sat"o' *orae)

Facts For t!e purc!ase pr"ce of #.7$% &"lla Espera'a evelop*e't

>el+

Corporat"o' (ve'+ee) a'+ A'to'"o Cortes (ve'+or) e'tere+

Cortes avers t!at !e +el"vere+ t!e TCTs t!rou! t!e 2ro8ers

"'to a co'tract of sale over t!e lots locate+ at ,aclara'%

so'. >e furt!er avers t!at t!e 2ro8ers so' +el"vere+ "t to t!e

-araa/ue% $etro $a'"la. T!e Corporat"o' a+va'ce+ to Cortes

 2ro8er% !o "' tur' +el"vere+ +el"vere+ t!e* to to t!e Corporat"o'. Corporat"o'.

t!e total su* of -1%1#%000.00. ' Septe*2er 193#% t!e part"es eecute+ a +ee+ of a2solute sale o' t!e follo"' ter*s

$arcosa Sa'c!es u're2utte+ u're2utte+ test"*o' "s t!at% s!e +"+ 'ot

T!e Corporat"o' s!all a+va'ce . $ as +o'pa*e't% a'+

rece"ve t!e TCTs. TCTs. S!e also +e'"e+ 8'ole+e of +el"ver

Cortes s!all l"8e"se +el"ver t!e TCT for t!e # lots.

t!ereof to !er so'% $a''.

T!e 2ala'ce of 1.5$ s!all 2e paa2le "t!"' a ear fro* t!e +ate of t!e eecut"o'.

:!at furt!er stre't!e'e+ t!e f"'+"'s of t!e Court of Appeals t!at Cortes +"+ 'ot surre'+er t!e su2=ect +ocu*e'ts as t!e

T!e Corporat"o' f"le+ t!e "'sta't case for spec"f"c perfor*a'ce

offer of Cortes cou'sel at t!e pretr"al to +el"ver t!e TCTs a'+

see8"' to co*pel Cortes to +el"ver t!e TCTs a'+ t!e or""'al

t!e ee+ of A2solute Sale "f t!e Corporat"o' "ll pa t!e

cop of t!e ee+ of A2solute Sale. Accor+"' to t!e

 2ala'ce of t!e +o' pa*e't. '+ee+% '+ee+% "f t!e sa"+ sa"+ +ocu*e'ts

Corporat"o'% +esp"te "ts rea+"'ess a'+ a2"l"t to pa t!e

ere alrea+ "' t!e !a'+s of t!e Corporat"o'% t!ere as 'o

 purc!ase pr"ce% Cortes refuse+ +el"ver of t!e sou!t

'ee+ for Cortes cou'sel to *a8e suc! offer.

+ocu*e'ts. t prae+ for +a*aes% attor'es attor'es fees a'+ l"t"at"o' epe'ses. Cortes cla"*e+ t!at t!e o'ers +upl"cate cop of t!e t!ree TCTs ere surre'+ere+ to t!e Corporat"o' a'+ "t "s t!e latter !"c! refuse+ to pa "' full t!e aree+ +o'  pa*e't.

Co's"+er"' t!at t!e"r o2l"at"o' as rec"procal% perfor*a'ce t!ereof *ust 2e s"*ulta'eous. T!e *utual "'act"o' of Cortes a'+ t!e Corporat"o' t!erefore ave r"se to a co*pe'sat"o' *orae or +efault o' t!e part of 2ot! part"es 2ecause 'e"t!er !as co*plete+ t!e"r part "' t!e"r rec"procal o2l"at"o'. Cortes "s et

RTC RTC re'+ere+ a +ec"s"o' resc"'+"' t!e sale a'+ +"recte+

to +el"ver t!e or""'al cop of t!e 'otar"e+ ee+ a'+ t!e

Cortes to retur' to t!e Corporat"o' t!e a*ou't of

TCTs% TCTs% !"le t!e Corporat"o' "s et to pa "' full t!e aree+

-1%1#%000.00% plus "'terest. CA reverse+ t!e +ec"s"o' a'+

+o' pa*e't of -%00%000.00. T!"s *utual +ela of t!e

+"recte+ Cortes to eecute a ee+ of A2solute Sale co've"'

 part"es ca'cels ca'cels out t!e effects effects of +efault% +efault% suc! t!at "t "s as "f 'o

t!e propert"es a'+ to +el"ver t!e sa*e to t!e Corporat"o'

o'e "s u"lt of +ela.

toet!er "t! t!e TCTs% s"*ulta'eous "t! t!e Corporat"o's  pa*e't of t!e 2ala'ce of t!e purc!ase pr"ce of -%437%000.00.

B'+er Art"cle Art"cle 1169 of t!e C"v"l Co+e% fro* t!e *o*e't o'e of  t!e part"es fulf"lls !"s o2l"at"o'% +ela 2 t!e ot!er 2e"'s. S"'ce Cortes +"+ 'ot perfor* !"s part% t!e prov"s"o' of t!e

ssue

co'tract re/u"r"' t!e Corporat"o' to pa "' full t!e +o'

:O; Cortes +el"vere+ t!e TCTs a'+ t!e or""'al ee+ to t!e

 pa*e't 'ever ac/u"re+ ac/u"re+ o2l"ator force.

Corporat"o'< ;O. :O; t!ere "s +ela "' t!e perfor*a'ce of t!e part"es