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force. The law also provides for the rights of the buyer in case of
cancellation.
Same Same Ejectment A decision in an ejectment case can
operate as the notice of cancellation required by Section 3(b) of
R.A. No. 6552.The decision in the ejectment case operated as
the notice of cancellation required by Sec. 3(b). As petitioner Leao
was not given the cash surrender
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FIRST DIVISION.
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value of the payments that she made, there was still no actual
cancellation of the contract. Consequently, petitioner Leao may
still reinstate the contract by updating the account during the
grace period and before actual cancellation. Should petitioner
Leao wish to reinstate the contract, she would have to update
her accounts with respondent Fernando in accordance with the
statement of account which amount was P183,687.00.
Same Even if the contract provided that the total purchase
price is payable within a tenyear period, specifying that the price
shall be paid in monthly installments for which the corresponding
penalty shall be imposed in case of default, the vendee cannot
ignore the provision on the payment of monthly installments by
claiming that the tenyear period within which to pay has not
elapsed.On the issue of whether petitioner Leaowasin delay in
paying the amortizations, we rule that while the contract
provided that the total purchase price was payable within a ten
year period, the same contract specified that the purchase price
shall be paid in monthly installments for which the corresponding
penalty shall be imposed in case of default. Petitioner Leao
cannot ignore the provision on the payment of monthly
installments by claiming that the tenyear period within which to
pay has not elapsed.
Same Obligations and Contracts In reciprocal obligations,
neither party incurs in delay if the other does not comply or is not
ready to comply in a proper manner with what is incumbent upon
him, but from the moment one of the parties fulfills his obligation,
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The Case
The case
is a petition for review on certiorari of the
1
decision of the Court of Appeals affirming that
of the
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Regional Trial Court, Malolos, Branch 7 ordering
petitioner Leao to pay respondent Hermogenes Fernando
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p. 105.
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p. 105.
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Exhibits B, B1, B2, B3, B4, B5, B6, B7, and B8,
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Decision, Original Record, Civil Case No. 768M93, pp. 146158, at p. 157.
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Motion for Reconsideration, Original Record, Civil Case No. 768M93, pp.
160164.
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Order, Original Record, Civil Case No. 768M93, pp. 169170, at p. 170.
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p. 155.
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Resolution,CARollo,p.95.
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ownership of the land in the seller until the buyer has paid
the total purchase price.
Consider the following:
First, the contract to sell makes the sale, cession and
conveyance
subject to conditions set forth in the contract
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to sell.
Second, what was transferred was the possession of the
property, not ownership. The possession is even limited by
the following: (1) that the vendee may continue therewith
as long as the VENDEE complies with all the terms and
conditions mentioned, and (2) that the buyer may not sell,
cede, assign, transfer or mortgage or in any way encumber
any right, interest or equity that she may have or acquire
in and to the said parcel of land nor to lease or to sublease
it or give possession 30to another person without the written
consent of the seller.
Finally, the ownership of the lot was not transferred to
Carmelita Leao. As the land is covered by a Torrens title,
the act of registration of the deed of sale was 31the operative
act that could transfer ownership over the lot. There is not
even a deed that could be registered since the contract
provides that the seller will execute such a deed upon
complete payment by the VENDEE of the total 32purchase
price of the property with the stipulated interest.
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at p. 105.
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at p. 106.
31
at p. 106.
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obligatory force. Thetransferof ownership
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Rillo v. Court of Appeals, 340 Phil. 570, 577 274 SCRA 461 (1997), citing
Rillo v. Court of Appeals, 340 Phil. 570, 577 274 SCRA 461 (1997).
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Rillo v. Court of Appeals, 340 Phil. 570, 577 274 SCRA 461 (1997) Spouses
Pangilinan v. Court of Appeals, 345 Phil. 93, 99 279 SCRA 590 (1997) Peoples
Industrial and Commercial Corporation v. CA, 346 Phil. 189, 204 281 SCRA 206
(1997) and Valarao v. Court of Appeals, 363 Phil. 495, 504 304 SCRA 155 (1999).
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Rillo v. CA, 340 Phil. 570, 577 274 SCRA 461 (1997), citing Luzon Brokerage
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the contract by a notarial act and upon full payment of the cash
surrender value to the buyer. [Emphasis supplied]
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170.
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damages. However, we agree with the trial
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157.
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Palmares v. Court of Appeals, 351 Phil. 664, 679 288 SCRA 422
(1998), citing Abella v. Court of Appeals, 327 Phil. 270 257 SCRA 482
(1996).
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