OBLICON
a")ance" age, DB& e
Development Bank v CA
Facts: Facts: In May 1987, Juan B. Dans, together together wth hs w!e Can""a, hs son an" "aughter#n "aughter#n#$aw, #$aw, a%%$e" !or a $oan o! &'((,(((.(( wth the De)e$o%*ent Ban+ o! the & h$%%nes DB&-, Bas$an Branch. s the %rnc%a$ *ortgagor, Dans, then 7/ years o! age, was a")se" 0y DB& to o0tan a *ortgage re"e*%ton nsurance MI- wth the DB& Mortgage e"e*%ton Insurance &oo$ DB& MI &oo$-. Dans2 $oan re"uce" to 3((+- was a%%ro)e" 0y DB& an" was re$ease". Fro* the %rocee"s o! the $oan, DB& "e"ucte" an a*ount as %ay*ent !or the MI %re*u* an" therea!ter, Dans acco*%$she" an" su0*tte" the MI %%$caton an" nsurance an" the 4ea$th 5tate*ent %oo$. On 5e%te*0er 3, 1987, Dans "e" o! car"ac arrest. 6he DB&, u%on notce, re$aye" ths n!or*aton to the DB& MI &oo$. On 5e%te*0er 3, 1987, the DB& MI &oo$ not!e" DB& that Dans was not e$g0$e !or MI co)erage, 0eng o)er the acce%tance age $*t o! /( years at the t*e o! a%%$caton. DB& a%%rse" Can""a Dans o! the "sa%%ro)a$ o! her $ate hus0an"s MI a%%$caton. 6he DB& o!!ere" to re!un" the %re*u* o! &1,7/.(( whch the "ecease" ha" %a", 0ut Can""a Dans re!use" to acce%t the sa*e, "e*an"ng %ay*ent o! the !ace )a$ue o! the MI or an a*ount eu)a$ent to the $oan. 5he, $+ewse, re!use" to acce%t an ex gratia sett$e*ent o! &3(,(((.((, whch the DB& $ater o!!ere". es%on"ent ;state, through Can""a Dans as a"*nstratr<, !$e" a co*%$ant wth the egona$ 6ra$ Court, Branch Branch I, Bas$an, aganst aganst DB& an" the nsurance nsurance %oo$ !or =Co$$ecton =Co$$ecton o! 5u* o! Money wth Da*ages.= es%on"ent ;state a$$ege" that Dans 0eca*e nsure" 0y the DB& MI &oo$ when DB&, wth !u$$ +now$e"ge o! Dans age at the t*e o! a%%$caton, reure" h* to a%%$y !or MI, an" $ater co$$ecte" the nsurance %re*u* thereon. 6he tra$ court ren"ere" a "ecson n !a)or o! res%on"ent ;state an" aganst DB&. 6he DB& MI &oo$, howe)er, was a0so$)e" !ro* $a0$ty, a!ter the tra$ court !oun" no %r)ty o! contract 0etween t an" the "ecease". 6he tra$ court "ec$are" DB& n esto%%e$ !or ha)ng $e" Dans nto a%%$yng !or MI an" actua$$y co$$ectng the %re*u* an" the ser)ce !ee, "es%te +now$e"ge o! hs age ne$g0$ty. 6he DB& a%%ea$e" to the Court o! %%ea$s. But the C a!!r*e" n toto the "ecson o! 6C.
4e$": In "ea$ng wth Dans, DB& was wearng two $ega$ hats: the !rst as a $en"er, an" the secon" as an nsurance agent.
s an nsurance agent, DB& *a"e Dans go through the *oton o! a%%$yng !or sa" nsurance, there0y $ea"ng h* an" hs !a*$y to 0e$e)e that they ha" a$rea"y !u$!$$e" a$$ the reure*ents !or the MI an" that the ssuance o! ther %o$cy was !orthco*ng. %%arent$y, DB& ha" !u$$ +now$e"ge that Dans a%%$caton was ne)er gong to 0e a%%ro)e". 6he *a<*u* age !or MI acce%tance s /( years as c$ear$y an" s%ec!ca$$y %ro)"e" n rtc$e 1 o! the >rou% Mortgage e"e*%ton Insurance &o$cy sgne" n 198 0y a$$ the nsurance co*%anes concerne".
?n"er rtc$e 1987 o! the C)$ Co"e o! the &h$%%nes, =the agent who acts as such s not %ersona$$y $a0$e to the %arty wth who* he contracts, un$ess he e<%ress$y 0n"s h*se$! or e
6he $a0$ty o! an agent who e
I! the thr" %erson "ea$ng wth an agent s unaware o! the $*ts o! the authorty con!erre" 0y the %rnc%a$ on the agent an" he thr" %erson- has 0een "ece)e" 0y the non#"sc$osure thereo! 0y the agent, then the $atter s $a0$e !or "a*ages to h*.
6he DB&s $a0$ty, howe)er, cannot 0e !or the entre )a$ue o! the nsurance %o$cy. 6o assu*e that were t not !or DB&s concea$*ent o! the $*ts o! ts authorty, Dans wou$" ha)e secure" an MI !ro* another nsurance co*%any, an" there!ore wou$" ha)e 0een !u$$y nsure" 0y the t*e he "e", s hgh$y s%ecu$at)e. Cons"erng hs a")ance" age, there s no a0so$ute certanty that Dans cou$" o0tan an nsurance co)erage !ro* another co*%any. It *ust a$so 0e note" that Dans "e" a$*ost **e"ate$y, .e., on the nneteenth "ay a!ter a%%$yng !or the MI, an" on the twenty#thr" "ay !ro* the "ate o! re$ease o! hs $oan. One s entt$e" to an a"euate co*%ensaton on$y !or such %ecunary $oss su!!ere" 0y h* as he has "u$y %ro)e". Da*ages, to 0e reco)era0$e, *ust not on$y 0e ca%a0$e o! %roo!, 0ut *ust 0e actua$$y %ro)e" wth a reasona0$e "egree o! certanty. certanty. 5%ecu$at)e "a*ages are too re*ote to 0e nc$u"e" n n an accurate est*ate o! "a*ages. h$e Dans s not entt$e" to co*%ensatory "a*ages, he s entt$e" to *ora$ "a*ages. No %roo! o! %ecunary $oss s reure" n the assess*ent o! sa" +n" o! "a*ages .
Central Philippines Univ. v CA
Facts: 5o*et*e n 1939, the $ate Don a*on Lo%e@, 5r., who was then a *e*0er o! the Boar" o! 6rustees 6rustees o! the Centra$ &h$%%ne Co$$ege now Centra$ &h$%%ne ?n)ersty C&?-, e
6he DB& s not author@e" to acce%t a%%$catons !or MI when ts c$ents are *ore than /( years o! age ;
3. 6he sa" $an" sha$$ 0e ca$$e" =MON LO&;G CM&?5=, an" the sa" co$$ege sha$$ 0e un"er o0$gaton to erect a cornerstone 0earng that na*e. ny net nco*e !ro* the $an" or any o! ts %ar+s sha$$ 0e %ut n a !un" to 0e +nown as the =MON LO&;G CM&?5 F?ND= to 0e use" !or *%ro)e*ents
&r)ate res%on"ents, who are the hers o! Don a*on Lo%e@, 5r., !$e" an acton !or annu$*ent o! "onaton, recon)eyance an" "a*ages aganst C&? a$$egng that snce 1939 u% to the t*e the acton was !$e" the $atter ha" not co*%$e" wth the con"tons o! the "onaton. &r)ate res%on"ents a$so argue" that %ettoner ha" n !act negotate" wth the Natona$ 4ousng uthorty N4- to e
Fna$$y, snce the uestone" "ee" o! "onaton heren s 0asca$$y a gratutous one, "ou0ts re!errng to nc"enta$ crcu*stances o! a gratutous contract shou$" 0e reso$)e" n !a)or o! the $east trans*sson o! rghts an" nterests. 10 ecor"s are c$ear an" !acts are un"s%ute" that snce the e
6he tra$ court he$" that %ettoner !a$e" to co*%$y wth the con"tons o! the "onaton an" "ec$are" t nu$$ an" )o". C ru$e" that the annotatons at the 0ac+ o! %ettoners cert!cate o! tt$e were reso$utory con"tons 0reach o! whch shou$" ter*nate the rghts o! the "onee thus *a+ng the "onaton re)oca0$e.
6he a%%e$$ate court a$so !oun" that wh$e the !rst con"ton *an"ate" %ettoner to ut$@e the "onate" %ro%erty !or the esta0$sh*ent o! a *e"ca$ schoo$, the "onor "" not !< a %ero" wthn whch the con"ton *ust 0e !u$!$$e", hence, unt$ a %ero" was !
Issue: hether the C erre" n !n"ng that %ettoner !a$e" n co*%$yng wth the con"tons o! the "onaton.
4e$": e !n" t "!!cu$t to sustan the %etton. c$ear %erusa$ o! the con"tons set !orth n the "ee" o! "onaton e
Facts: On 5e%te*0er 3, 199, Megawor$" &ro%ertes an" 4o$"ngs, Inc. "e)e$o%er- entere" nto a Jont enture gree*ent J- wth MaHestc Fnance an" In)est*ent Co., Inc. owner- !or the "e)e$o%*ent o! the res"enta$ su0")son $ocate" n Brgy. $ngaro, >enera$ 6ras, Ca)te. ccor"ng to the J, the "e)e$o%*ent o! the 1' hectares o! $an" 0e$ongng to the owner Hont )enture %ro%ertywou$" 0e !or the so$e account o! the "e)e$o%er' an" that u%on co*%$eton o! the "e)e$o%*ent o! the su0")son, the owner wou$" co*%ensate the "e)e$o%er n the !or* o! sa$ea0$e res"enta$ su0")son $ots./ 6he J !urther %ro)"e" that the "e)e$o%er wou$" a")ance a$$ the costs !or the re$ocaton an" resett$e*ent o! the occu%ants o! the Hont )enture %ro%erty, su0Hect to re*0urse*ent 0y the owner7 an" that the "e)e$o%er wou$" "e%ost the nta$ a*ount o! &1(,(((,(((.(( to "e!ray the e<%enses !or the re$ocaton an" sett$e*ent, an" the costs !or o0tanng !ro* the >o)ern*ent the e
?n"er rt. 1181 o! the C)$ Co"e, on con"tona$ o0$gatons, the acuston o! rghts, as we$$ as the e
Issue: hether or not the %ettoners are o0$gate" to %er!or* ther o0$gatons un"er the J, nc$u"ng that o! %ro)"ng roun"#the#c$oc+ securty !or the su0Hect %ro%ertes, "es%te res%on"ents !a$ure or re!usa$ to ac+now$e"ge, or %er!or* ther rec%roca$ o0$gatons there 4e$": 6he a%%ea$ s *ertorous. 6he C erre" n u%ho$"ng the No)e*0er ', ( ( or"er o! the 6C. 6he o0$gatons o! the %artes un"er the J were unuestona0$y rec%roca$. ec%roca$ o0$gatons are those that arse !ro* the sa*e cause, an" n whch each %arty s a "e0tor an" a cre"tor o! the other at the sa*e t*e, such that the o0$gatons o! one are "e%en"ent u%on the o0$gatons o! the other. 6hey are to 0e %er!or*e" s*u$taneous$y, so that the %er!or*ance 0y one s con"tone" u%on the s*u$taneous !u$!$$*ent 0y the other. ccor"ng to rtc$e 118 o! the Civil Code, the con"ton that so*e e)ent ha%%en at a "eter*nate t*e sha$$ e
the e)ent w$$ not ta+e %$ace. 4ere, the co**on cause o! the %artes n enterng nto the Hont )enture was the "e)e$o%*ent o! the Hont )enture %ro%erty nto the res"enta$ su0")son as to e)entua$$y %ro!t there!ro*. Conseuent$y, a$$ o! the o0$gatons un"er the J were su0Hect to the ha%%enng o! the co*%$ete "e)e$o%*ent o! the Hont )enture %ro%erty, or ! t wou$" 0eco*e n"u0ta0$e that the co*%$eton wou$" not ta+e %$ace, $+e when an o0$gaton, whether contnuous or act)ty, was not %er!or*e". 5hou$" any o! the o0$gatons, whether contnuous or act)ty, 0e not %er!or*e", a$$ the other remaining o0$gatons wou$" not r%en nto "e*an"a0$e o0$gatons wh$e those a$rea"y %er!or*e" wou$" cease to ta+e e!!ect. 6hs s 0ecause e)ery sng$e o0$gaton o! each %arty un"er the J reste" on the co**on cause o! % ro!tng !ro* the " e)e$o% e" su0 ")son. It a%%ears that u%on the e
Facts: 6he "ee" o! con)eyance ea$ca, 5r., %ror to hs "e*se n 1979, an" Ce$erna La0ugun, n !a)or o! $0rg"o Ley)a n)o$)ng the un")"e" one#ha$! %orton o! a %ece o! $an" stuate" at &o0$acon, >u*0a, Nue)a ;cHa !or the su* o! &'(,(((.((. It s the s the su0Hect *atter o! the %resent $tgaton 0etween the hers o! Juan >a$ca, 5r. who assert 0reach o! the con"tons as aganst %r)ate res%on"ents c$a* anchore" on !u$$ %ay*ent an" co*%$ance wth the st%u$atons thereo!. 6he court o! orgn whch tre" the sut !or s%ec!c %er!or*ance !$e" 0y %r)ate res%on"ent on account o! the heren %ettoners re$uctance to a0"e 0y the co)enant, ru$e" n !a)or o! the )en"ee %. /, Rollo- wh$e res%on"ent court %ractca$$y agree" wth the tra$ court ea$ca, 5r. ccor"ng to %ettoners, o! the &1(,(((.(( to 0e %a" wthn ten "ays !ro* ea$ca, 5r. are "sa)owng the contract n+e" 0y ther %re"ecessor, %r)ate res%on"ent !$e" the co*%$ant !or s%ec!c %er!or*ance.
%re)ente" %$ant!! !ro* %ayng the nsta$$*ent !u$$y= an" =!or the %ur%ose o! wth"rawng the tt$e to the $ot=. 6he acce%tance 0y %ettoners o! the )arous %ay*ents e)en 0eyon" the %ero"s agree" u%on, was %erce)e" 0y the $ower court as tanta*ount to !ath!u$ %er!or*ance o! the o0$gaton %ursuant to rtc$e 13' o! the C)$ Co"e. Further*ore, the tra$ court note" that %r)ate res%on"ent consgne" &18,'(.((, an a*ount su!!cent to o!!set the re*anng 0a$ance, $ea)ng the su* o! &1,31'.(( to 0e cre"te" to %r)ate res%on"ent. Inso!ar as the thr" te* o! the contract s concerne", t *ay 0e reca$$e" that res%on"ent court a%%$e" rtc$e 118/ o! the C)$ Co"e on construct)e !u$!$$*ent whch %ettoners c$a* shou$" not ha)e 0een a%%recate" 0ecause they are the o0$gees wh$e the proviso n %ont s%ea+s o! the o0$gor. But, %ettoners *ust conce"e that n a rec%roca$ o0$gaton $+e a contract o! %urchase, ng )s. Court o! %%ea$s, 17( 5C 8/ 1989 Paras, supra, at %. (1-, 0oth %artes are *utua$$y o0$gors an" a$so o0$gees Padilla, supra, at %. 197-, an" any o! the contractng %artes *ay, u%on non#!u$!$$*ent 0y the other %r)y o! hs %art o! the %restaton, rescn" the contract or see+ !u$!$$*ent Article 1191, C)$ Co"e-. In short, t s %uer$e !or %ettoners to say that they are the on$y o0$gees un"er the contract snce they are a$so 0oun" as o0$gors to res%ect the st%u$aton n %er*ttng %r)ate res%on"ent to assu*e the $oan wth the &h$%%ne eterans Ban+ whch %ettoners *%e"e" when they %a" the 0a$ance o! sa" $oan. s )en"ors, they are su%%ose" to e
Cann v !alang
Facts: es%on"ents#s%ouses >$ an" Fernan"na >a$ang o0tane" a $oan !ro* Fortune 5a)ngs Loan ssocaton !or &173,8((.(( to %urchase a house an" $ot $ocate" at &u$ang Lu%a, Las &as, wth an area o! 1'( suare *eters co)ere" 0y 6rans!er Cert!cate o! 6t$e 6C6- No. 6#8'(' n the na*es o! res%on"ents#s%ouses. 6o secure %ay*ent, a rea$ estate *ortgage was consttute" on the sa" house an" $ot n !a)or o! Fortune 5a)ngs Loan ssocaton. In ear$y 199(, N4MFC %urchase" the *ortgage $oan o! res%on"ents#s%ouses !ro* Fortune 5a)ngs Loan ssocaton !or &173,8((.((. es%on"ent Fernan"na >a$ang author@e" her attorney#n#!act, "e$na . 6*0ang, to se$$ the su0Hect house an" $ot.
&ettoner Letca Cannu agree" to 0uy the %ro%erty !or &1(,(((.(( an" to assu*e the 0a$ance o! the *ortgage o0$gatons wth the N4MFC an" wth C;F ea$ty the De)e$o%er o! the %ro%erty-. 6here were su0seuent %ay*ents *a"e 0y the %ettoners, nut there s a re*anng 0a$ance o! '+. Dee" o! 5a$e wth ssu*%ton o! Mortgage O0$gaton "ate" ( ugust 199( was *a"e an" entere" nto 0y an" 0etween s%ouses Fernan"na an" >$ >a$ang )en"ors- an" s%ouses Letca an" Fe$%e Cannu )en"ees- o)er the house an" $ot n ueston. &ettoners **e"ate$y too+ %ossesson an" occu%e" the house an" $ot.
Issue: hether the con"tons o! the nstru*ent were %er!or*e" 0y heren %r)ate res%on"ent as )en"ee. 4e$": 6he court "ec"e" to u%ho$" %r)ate res%on"ents theory on the 0ass o! construct)e !u$!$$*ent un"er rtc$e 118/ an" esto%%e$ through acce%tance o! %ece*ea$ %ay*ents n $ne wth rtc$e 13' o! the C)$ Co"e. nent the &1(,(((.(( s%ec!e" as secon" nsta$$*ent, the $ower court counte" aganst the )en"ors the can"" state*ent o! Jose!na 6ayag who sat on the wtness stan" an" *a"e the a"*sson that the chec+ ssue" as %ay*ent thereo! was nonethe$ess %a" on a staggere" 0ass when the chec+ was "shonore" 65N, 5e%te*0er 1, 1983, %%. 3# %. 3, Decson %. //, Rollo-. egar"ng the thr" con"ton, the tra$ court note" that %$ant!! 0e$ow %a" *ore than &/,(((.(( to the &h$%%ne eterans Ban+ 0ut Celerina Labuguin, the sster an" co#)en"or o! Juan >a$ca, 5r. %a" &3,778.77 whch crcu*stance was construe" to 0e a %$oy un"er rtc$e 118/ o! the C)$ Co"e that =%re*ature$y
Des%te reuests !ro* "e$na . 6*0ang an" Fernan"na >a$ang to %ay the 0a$ance o! &',(((.(( or n the a$ternat)e to )acate the %ro%erty n ueston, %ettoners re!use" to "o so. Because the Cannus !a$e" to !u$$y co*%$y wth ther o0$gatons, res%on"ent Fernan"na >a$ang, on 1 May 1993, %a" &33,9'7./ as !u$$ %ay*ent o! her re*anng *ortgage $oan wth N4MFC. &ettoners o%%ose" the re$ease o! 6C6 No. 6#8'(' n !a)or o! res%on"ents#s%ouses nsstng that the su0Hect %ro%erty ha" a$rea"y 0een so$" to the*.
6hereu%on, a Co*%$ant !or 5%ec!c &er!or*ance an" Da*ages was !$e" as+ng, a*ong other thngs, that %ettoners %$ant!!s theren- 0e "ec$are" the owners o! the %ro%erty n)o$)e" su0Hect to re*0urse*ents o! the a*ount *a"e 0y res%on"ents#s%ouses "e!en"ants theren- n %reter*natng the *ortgage $oan wth N4MFC.
es%on"ent N4MFC !$e" ts nswer.1 It c$a*e" that %ettoners ha)e no cause o! acton aganst t 0ecause they ha)e not su0*tte" the !or*a$ reure*ents to 0e cons"ere" assgnees an" successors# n#nterest o! the %ro%erty un"er $tgaton.
In ther nswer, res%on"ents#s%ouses a$$ege" that 0ecause o! %ettoners#s%ouses2 !a$ure to !u$$y %ay the cons"eraton an" to u%"ate the *onth$y a*ort@atons wth the N4MFC, they %a" n !u$$ the e<stng o0$gatons wth N4MFC as an nta$ ste% n the rescsson an" annu$*ent o! the Dee" o! 5a$e wth ssu*%ton o! Mortgage. In ther counterc$a*, they *antan that the acts o! %ettoners n not !u$$y co*%$yng wth ther o0$gatons g)e rse to rescsson o! the Dee" o! 5a$e wth ssu*%ton o! Mortgage wth the corres%on"ng "a*ages.
*a+ng the agree*ent. 3/6he ueston o! whether a 0reach o! contract s su0stanta$ "e%en"s u%on the atten"ng crcu*stances37 an" not *ere$y on the %ercentage o! the a*ount n ot %a".
In the case at 0ar, we !n" %ettoners2 !a$ure to %ay the re*anng 0a$ance o! &',(((.(( to 0e su0stanta$. ;)en assu*ng arguendo that on$y sa" a*ount was $e!t out o! the su%%ose" cons"eraton o! &'(,(((.((, or eghteen 18- %ercent thereo!, ths %ercentage s st$$ su0stanta$. 6a+en together wth the !act that the $ast %ay*ent *a"e was on 8 No)e*0er 1991, eghteen *onths 0e!ore the res%on"ent Fernan"na >a$ang %a" the outstan"ng 0a$ance o! the *ortgage $oan wth N4MFC, the ntenton o! %ettoners to renege on ther o0$gaton s utter$y c$ear.
6he !act that %ettoners ten"ere" a Manager2s Chec+ to res%on"ents#s%ouses >a$ang n the a*ount o! &78,9'7.(( se)en *onths a!ter the !$ng o! ths case s o! no *o*ent. 6en"er o! %ay*ent "oes not 0y tse$! %ro"uce $ega$ %ay*ent, un$ess t s co*%$ete" 0y consgnaton. ( 6her !a$ure to !u$!$$ ther o0$gaton ga)e the res%on"ents#s%ouses >a$ang the rght to rescsson. 6her re$ance on rtc$e 1383 s *s%$ace".
6he 6C ren"ere" "ecson n !a)our o! the res%on"ents. 6he su0s"ary character o! the acton !or rescsson a%%$es to contracts enu*erate" n rtc$es 13818 o! the C)$ Co"e. 6he contract n)o$)e" n the case 0e!ore us s not one o! those *entone" theren. 6he %ro)son that a%%$es n the case at 0ar s rtc$e 1191 . Issue: hether C erre" when t he$" that the %ettoners ha" 0reache" ther o0$gaton.
4e$": On the !rst assgne" error, %ettoners argue that the Court erre" when t ru$e" that ther 0reach o! the o0$gaton was su0stanta$.
5ett$e" s the ru$e that rescsson or, *ore accurate$y, reso$uton, 33 o! a %arty to an o0$gaton un"er rtc$e 11913s %re"cate" on a 0reach o! !ath 0y the other %arty that )o$ates the rec%rocty 0etween the*.3' rtc$e 1191 rea"s: rt. 1191. 6he %ower to rescn" o0$gatons s *%$e" n rec%roca$ ones, n case one o! the o0$gors shou$" not co*%$y wth what s ncu*0ent u%on h*. 6he nHure" %arty *ay choose 0etween the !u$!$$*ent an" the rescsson o! the o0$gaton, wth the %ay*ent o! "a*ages n ether case. 4e *ay a$so see+ rescsson, e)en a!ter he has chosen !u$!$$*ent, ! the $atter shou$" 0eco*e *%oss0$e. 6he court sha$$ "ecree the rescsson c$a*e", un$ess there 0e Hust cause author@ng the !<ng o! a %ero". escsson w$$ not 0e %er*tte" !or a s$ght or casua$ 0reach o! the contract. escsson *ay 0e ha" on$y !or such 0reaches that are su0stanta$ an" !un"a*enta$ as to "e!eat the o0Hect o! the %artes n
In the concurrng o%non o! Justce Jose B.L. eyes n niversal !ood Corp" v" Court of Appeals,9 rescsson un"er rtc$e 1191 was "stngushe" !ro* rescsson un"er rtc$e 1381. Justce J.B.L. eyes sa": . . . 6he rescsson on account o! 0reach o! st%u$atons s not %re"cate" on nHury to econo*c nterests o! the %arty %$ant!! 0ut on the 0reach o! !ath 0y the "e!en"ant, that )o$ates the rec%rocty 0etween the %artes. It s not a su0s"ary acton, an" rtc$e 1191 *ay 0e scanne" wthout "sc$osng anywhere that the acton !or rescsson thereun"er s su0or"nate" to anythng other than the cu$%a0$e 0reach o! hs o0$gatons 0y the "e!en"ant. 6hs rescsson s a %rnc%a$ acton reta$atory n character, t 0eng unHust that a %arty 0e he$" 0oun" to !u$!$$ hs %ro*ses when the other )o$ates hs. s e<%resse" n the o$" Latn a%hors*: =#on servanti fidem, non est fides servanda .= 4ence, the re%araton o! "a*ages !or the 0reach s %ure$y secon"ary. On the contrary, n the rescsson 0y reason o! lesion or econo*c %reHu"ce, the cause o! acton s su0or"nate" to the e<stence o! that %reHu"ce, 0ecause t s the raison d $tre as we$$ as the *easure o! the rght to rescn". 4ence, where the "e!en"ant *a+es goo" the "a*ages cause", the acton cannot 0e *antane" or contnue", as e<%ress$y %ro)"e" n rtc$es 1383 an" 138. But the o%eraton o! these two artc$es s $*te" to the cases o! rescsson !or lesion enu*erate" n rtc$e 1381 o! the C)$ Co"e o! the &h$%%nes, an" "oes not a%%$y to cases un"er rtc$e 1191.
Fro* the !oregong, t s c$ear that rescsson =reso$uton= n the O$" C)$ Co"e- un"er rtc$e 1191 s a %rnc%a$ acton, wh$e rescsson un"er rtc$e 1383 s a su0s"ary acton. 6he !or*er s 0ase" on 0reach 0y the other %arty that )o$ates the rec%rocty 0etween the %artes, wh$e the $atter s not. It s e)"ent that the contract un"er cons"eraton "oes not contan a %ro)son author@ng ts e
s a conseuence o! the rescsson or, *ore accurate$y, reso$uton o! the Dee" o! 5a$e wth ssu*%ton o! Mortgage, t s the "uty o! the court to reure the %artes to surren"er whate)er they *ay ha)e rece)e" !ro* the other. 6he %artes shou$" 0e restore" to ther orgna$ stuaton.
