THIRD DIVISION [G.R. No. 107207. November 23, 1995.] VIRGILIO R. ROMERO, e!"!"o#er, v$. HON.

%O&RT O' ())E(LS *#+ ENRI,&E %H&( VD(. DE ONGSIONG, re$ o#+e#!$. DECISION

VITUG, J p: The parties pose this question: M*- !.e ve#+or +em*#+ !.e re$/"$$"o# o0 * /o#!r*/! 0or !.e $*1e o0 * *r/e1 o0 1*#+ 0or * /*2$e !r*/e*b1e !o ."$ o3# 0*"12re !o .*ve !.e $42*!!er$ o# !.e $2b5e/! ro er!- ev"/!e+ 3"!."# !.e /o#!r*/!2*11-6$!" 21*!e+ er"o+7

Petitioner Virgilio R Ro!ero, a "i#il engineer, $as engage% in the &usiness o' pro%u"tion, !anu'a"ture an% e(portation o' perlite 'ilter ai%s, per!alite insulation an% pro"ess perlite ore In )*++, petitioner an% his 'oreign partners %e"i%e% to put up a "entral $arehouse in ,etro ,anila on a lan% area o' appro(i!atel- .,/// square !eters The pro0e"t $as !a%e 1no$n to se#eral 'reelan"e real estate &ro1ers 2 %a- or so a'ter the announ"e!ent, 2l'onso 3lores an% his $i'e, a""o!panie% &- a &ro1er, o''ere% a par"el o' lan% !easuring ),*4. square !eters 5o"ate% in 6aranga- San Dionisio, Para7aque, ,etro ,anila, the lot $as "o#ere% &- TCT No 89):/. in the na!e o' pri#ate respon%ent Enriqueta Chua V%a %e Ongsiong Petitioner #isite% the propert- an%, e("ept 'or the presen"e o' squatters in the area, he 'oun% the pla"e suita&le 'or a "entral $arehouse 5ater, the 3lores spouses "alle% on petitioner $ith a proposal that shoul% he a%#an"e the a!ount o' P4/,/// // $hi"h "oul% &e use% in ta1ing up an e0e"t!ent "ase against the squatters, pri#ate respon%ent $oul% agree to sell the propert- 'or onl- P+// // per square !eter Petitioner e(presse% his "on"urren"e On /* June )*++, a "ontra"t, %eno!inate% ;Dee% o' Con%itional Sale,; $as e(e"ute% &et$een petitioner an% pri#ate respon%ent The si!pl-< %ra$n "ontra"t rea%: ;DEED O3 CONDITION25 S25E ;=NO> 255 ,EN 6? T@ESE PRESENTS: ;This Contra"t , !a%e an% e(e"ute% in the ,uni"ipalit- o' ,a1ati, Philippines this *th %a- o' June, )*++ &- an% &et$een: ;ENRIAUET2 C@U2 VD2 DE ONGSIONG, o' legal age, $i%o$, 3ilipino an% resi%ing at )/4 Si!oun St AueBon Cit-, ,etro ,anila, hereina'ter re'erre% to as the VENDORC D an% D

;VIRGI5IO R RO,ERO, !arrie% to Se#erina 5 5at, o' legal age, 3ilipino, an% resi%ing at ))/ San ,iguel St , Plain#ie$ Su&% , ,an%alu-ong ,etro ,anila, hereina'ter re'erre% to as the VENDEE: ;>ITNESSET@: That ;>@ERE2S, the VENDOR is the o$ner o' One E)F par"el o' lan% $ith a total area o' ONE T@OUS2ND NINE @UNDRED 3I3T? T>O E),*4.F SAU2RE ,ETERS, !ore or less, lo"ate% in 6arrio San Dionisio, ,uni"ipalit- o' Para7aque, Pro#in"e o' RiBal, "o#ere% &- TCT No 89):/. issue% &- the Registr- o' Dee%s o' Pasig an% !ore parti"ularl- %es"ri&e% as 'ollo$s: ((( ((( (((

;>@ERE2S, the VENDEE, 'or Esi"F has o''ere% to &u- a par"el o' lan% as the VENDOR has a""epte% the o''er, su&0e"t to the ter!s an% "on%itions hereina'ter stipulate%: ;NO>, T@ERE3ORE, 'or an% in "onsi%eration o' the su! o' ONE ,I55ION 3IVE @UNDRED SIGT? ONE T@OUS2ND SIG @UNDRED PESOS EP),49),9// //F ON5?, Philippine Curren"-, pa-a&le &- VENDEE to in Esi"F !anner set 'orth, the VENDOR agrees to sell to the VENDEE, their heirs, su""essors, a%!inistrators, e(e"utors, assign, all her rights, titles an% interest in an% to the propert- !entione% in the 3IRST >@ERE2S C52USE, su&0e"t to the 'ollo$ing ter!s an% "on%itions: ;) That the su! o' 3I3T? T@OUS2ND PESOS E4/,/// //F ON5? Philippine Curren"-, is to &e pai% upon signing an% e(e"ution o' this instru!ent ;. The &alan"e o' the pur"hase pri"e in the a!ount o' ONE ,I55ION 3IVE @UNDRED E5EVEN T@OUS2ND SIG @UNDRED PESOS EP),4)),9// //F ON5? shall &e pai% :4 %a-s a'ter the re!o#al o' all squatters 'ro! the a&o#e %es"ri&e% propert;8 Upon 'ull pa-!ent o' the o#erall pur"hase pri"e as a'oresai%, VENDOR $ithout ne"essit- o' %e!an% shall i!!e%iatel- sign, e(e"ute, a"1no$le%ge% Esi"F an% %eli#er the "orrespon%ing %ee% o' a&solute sale in 'a#or o' the VENDEE 'ree 'ro! all liens an% en"u!&ran"es an% all Real Estates ta(es are all pai% an% up%ate% ;It is here&- agree%, "o#enante% an% stipulate% &- an% &et$een the parties hereto that i' a'ter 9/ %a-s 'ro! the %ate o' the signing o' this "ontra"t the VENDOR shall not &e a&le to re!o#e the squatters 'ro! the propert- &eing pur"hase%, the %o$npa-!ent !a%e &- the &u-er shall &e returne%Hrei!&urse% &- the VENDOR to the VENDEE ;That in the e#ent that the VENDEE shall not &e a&le to pa- the VENDOR the &alan"e o' the pur"hase pri"e o' ONE ,I55ION 3IVE @UNDRED E5EVEN T@OUS2ND SIG @UNDRED PESOS EP),4)),9// //F ON5? a'ter :4 %a-s 'ro! $ritten noti'i"ation to the VENDEE o' the re!o#al o' the squatters 'ro! the propert- &eing pur"hase%, 3I3T? T@OUS2ND PESOS EP4/,/// //F pre#iousl- pai% as %o$npa-!ent shall &e 'or'eite% in 'a#or o' the VENDOR ;E(penses 'or the registration su"h as registration 'ees, %o"u!entar- sta!p, trans'er 'ee, assuran"e an% su"h other 'ees an% e(penses as !a- &e ne"essar- to trans'er the title to the

na!e o' the VENDEE shall &e 'or the a""ount o' the VENDEE $hile "apital gains ta( shall &e pai% &- the VENDOR ;IN >ITNESS >@EREO3, parties hereunto signe% those Esi"F presents in the Cit- o' ,a1ati ,,, Philippines on this *th %a- o' June, )*++ ESg% F ESg% F VIRGI5IO R RO,ERO ENREAUET2 C@U2 VD2 DE ONGSIONG Ven%ee ;SIGNED IN T@E PRESENCE O3: ESg% F ESg% F Ro$ena C Ongsiong Ja"1 , CruB; ) 2l'onso 3lores, in &ehal' o' pri#ate respon%ent, 'orth$ith re"ei#e% an% a"1no$le%ge a "he"1 'or P4/,/// // . 'ro! petitioner 8 Pursuant to this agree!ent, pri#ate respon%ent 'ile% a "o!plaint 'or e0e"t!ent ECi#il Case No I4I*F against ,el"hor ,usa an% .* other squatter 'a!ilies $ith the ,etropolitan Trial Court o' Para7aque 2 'e$ !onths later, or on .) 3e&ruar- )*+*, 0u%g!ent $as ren%ere% or%ering the %e'en%ants to #a"ate the pre!ises The %e"ision $as han%e% %o$n &e-on% the 9/<%a- perio% Ee(piring /* 2ugust )*++F stipulate% in the "ontra"t The $rit o' e(e"ution o' the 0u%g!ent $as issue%, still later, on 8/ ,ar"h )*+* In a letter, %ate% /I 2pril )*+*, pri#ate respon%ent sought to return the P4/,/// // she re"ei#e% 'ro! petitioner sin"e, she sai%, she "oul% not ;get ri% o' the squatters; on the lot 2tt- Sergio 2 3 2postol, "ounsel 'or petitioner, in his repl- o' )I 2pril )*+*, re'use% the ten%er an% state%: ;Our "lient &elie#es that $ith the e(er"ise o' reasona&le %iligen"e "onsi%ering the 'a#ora&le %e"ision ren%ere% &- the Court an% the $rit o' e(e"ution issue% pursuant thereto, it is no$ possi&le to e0e"t the squatters 'ro! the pre!ises o' the su&0e"t propert-, 'or $hi"h reason, he proposes that he shall ta1e it upon hi!sel' to e0e"t the squatters, pro#i%e%, that e(penses $hi"h shall &e in"urre% &- reason thereo' shall &e "hargea&le to the pur"hase pri"e o' the lan% ; : ,ean$hile, the Presi%ential Co!!ission 'or the Ur&an Poor E;PCUD;F, through its Regional Dire"tor 'or 5uBon, 3arle- O Viloria, as1e% the ,etropolitan Trial Court o' Para7aque 'or a gra"e perio% o' :4 %a-s 'ro! .) 2pril )*+* $ithin $hi"h to relo"ate an% trans'er the squatter 'a!ilies 2"ting 'a#ora&l- on the request, the "ourt suspen%e% the en'or"e!ent o' the $rit o' e(e"ution a""or%inglOn /+ June )*+*, 2tt- 2postol re!in%e% pri#ate respon%ent on the e(pir- o' the :4<%a- gra"e perio% an% his "lientJs $illingness to ;un%er$rite the e(penses 'or the e(e"ution o' the 0u%g!ent an% e0e"t!ent o' the o""upants ; 4 Ven%or

In his letter o' )* June )*+*, 2tt- Joaquin ?use"o, Jr , "ounsel 'or pri#ate respon%ent, a%#ise% 2tt- 2postol that the Dee% o' Con%itional Sale ha% &een ren%ere% null an% #oi% &- #irtue o' his "lientJs 'ailure to e#i"t the squatters 'ro! the pre!ises $ithin the agree% 9/<%a- perio% @e a%%e% that pri#ate respon%ent ha% ;%e"i%e% to retain the propert- ; 9 On .8 June )*+*, 2tt- 2postol $rote &a"1 to e(plain: ;The "ontra"t o' sale &et$een the parties $as per'e"te% 'ro!, the #er- !o!ent that there $as a !eeting o' the !in%s o' the parties upon the su&0e"t lot an% the pri"e in the a!ount o' P),49),9// // ,oreo#er, the "ontra"t ha% alrea%- &een partiall- 'ul'ille% an% e(e"ute% upon re"eipt o' the %o$npa-!ent o' -our "lient ,s Ongsiong is pre"lu%e% 'ro! re0e"ting its &in%ing e''e"ts rel-ing upon her ina&ilit- to e0e"t the squatters 'ro! the pre!ises o' su&0e"t propert%uring the agree% perio% Su''i"e it to state that, the pro#ision o' the Dee% o' Con%itional Sale %o not grant her the option or prerogati#e to res"in% the "ontra"t an% to retain the propert- shoul% she 'ail to "o!pl- $ith the o&ligation she ha% assu!e% un%er the "ontra"t In 'a"t, a perusal o' the ter!s an% "on%itions o' the "ontra"t "learl- sho$s that the right to res"in% the "ontra"t an% to %e!an% returnHrei!&urse!ent o' the %o$npa-!ent is grante% to our "lient 'or his prote"tion ;Instea%, ho$e#er, o' a#ailing hi!sel' o' the po$er to res"in% the "ontra"t an% %e!an% the return, rei!&urse!ent o' the %o$npa-!ent, our "lient ha% opte% to ta1e it upon hi!sel' to e0e"t the squatters 'ro! the pre!ises Pre"isel-, $e re'er -ou to our letters a%%resse% to -our "lient %ate% 2pril )I, )*+* an% June +, )*+* ;,oreo#er, it is &asi" un%er the la$ on "ontra"ts that the po$er to res"in% is gi#en to the in0ure% part- Un%ou&te%l-, un%er the "ir"u!stan"es, our "lient is the in0ure% part;3urther!ore, -our "lient has not "o!plie% $ith her o&ligation un%er their "ontra"t in goo% 'aith It is un%enia&le that ,s Ongsiong %eli&eratel- re'use% to e(ert e''orts to e0e"t the squatters 'ro! the pre!ises o' the su&0e"t propert- an% her %e"ision to retain the propert- $as &rought a&out &- the su%%en in"rease in the #alue o' realties in the surroun%ing areas ;Please "onsi%er this letter as a ten%er o' pa-!ent to -our "lient an% a %e!an% to e(e"ute the a&solute Dee% o' Sale ; I 2 'e$ %a-s later Eor on .I June )*+*F, pri#ate respon%ent pro!pte% &- petitionerJs "ontinue% re'usal to a""ept the return o' the P4/,/// // a%#an"e pa-!ent, 'ile% $ith the Regional Trial Court o' ,a1ati, 6ran"h )88, Ci#il Case No +*<:8*: 'or a res"ission o' the %ee% o' ;"on%itional; sale, plus %a!ages, an% 'or the "onsignation o' P4/,/// // "ash ,ean$hile, on .4 2ugust )*+*, the ,etropolitan Trial Court issue% an alias $rit o' e(e"ution in Ci#il Case No I4I* on !otion o' pri#ate respon%ent &ut the squatters apparentl- still sta-e% on 6a"1 to Ci#il "ase No +*<:8*:, on .9 June )**/, the Regional Trail Court o' ,a1ati + ren%ere% %e"ision hol%ing that pri#ate respon%ent ha% no right to res"in% the "ontra"t sin"e it $as she $ho ;#iolate% her o&ligation to e0e"t the squatters 'ro! the su&0e"t propert-; an% that petitioner, &eing the in0ure% part-, $as the part- $ho "oul%, un%er 2rti"le ))*) o' the Ci#il Co%e, res"in% the agree!ent The "ourt rule% that the pro#ision in the "ontra"t relating to EaF the

returnHrei!&urse!ent o' the P4/,/// // i' the #en%or $ere to 'ail in her o&ligation to 'ree the propert- 'ro! the squatters $ithin the stipulate% perio% or E&F, upon the other han%, the su!Js 'or'eiture &- the #en%or i' the #en%ee $ere to 'ail in pa-ing the agree% pur"hase pri"e, a!ounte% to ;penalt- "lauses; The "ourt a%%e%: ;This "ourt is not "on#in"e% o' the groun% relie% upon &- the plainti'' in see1ing the res"ission, na!el-: E)F he Esi"F is a'rai% o' the squattersC an% E.F she has spent so !u"h to e0e"t the! 'ro! the pre!ises Ep 9, tsn, see Jan 8, )**/F ,ilitating against her pro'ession o' goo% 'aith is plainti''Js "on%u"t $hi"h is not in a""or% $ith the rules o' 'air pla- an% 0usti"e Nota&l-, she "ause% the issuan"e o' an alias $rit o' e(e"ution on 2ugust .4, )*+* EE(h 9F in the e0e"t!ent suit $hi"h $as al!ost t$o !onths a'ter she 'ile% the "o!plaint &e'ore this Court on June .I, )*+* I' she $ere reall- a'rai% o' the squatters, then she shoul% not ha#e purse% the issuan"e o' an alias $rit o' e(e"ution 6esi%es, she %i% not e#en report to the poli"e the allege% phone threats 'ro! the squatters To the !in% o' the Court, the so<"alle% 'a"tor is si!pl- 'a"tuitous Esi"F ; * The lo$er "ourt, a""or%ingl-, %is!isse% the "o!plaint an% or%ere%, instea%, pri#ate respon%ent to e0e"t or "ause the e0e"t!ent o' the squatters 'ro! the propert- an% to e(e"ute the a&solute %ee% o' "on#e-an"e upon pa-!ent o' the 'ull pur"hase pri"e &- petitioner Pri#ate respon%ent appeale% to the Court o' 2ppeals On .* ,a- )**., the appellate "ourt ren%ere% its %e"ision )/ It opine% that the "ontra"t entere% into &- the parties $as su&0e"t to a resolutor- "on%ition, i e , the e0e"t!ent o' the squatters 'ro! the lan%, the non<o""urren"e o' $hi"h resulte% in the 'ailure o' the o&0e"t o' the "ontra"tC that pri#ate respon%ent su&stantiall"o!plie% $ith her o&ligation to e#i"t the squattersC that it $as petitioner $ho $as not rea%- to pa- the pur"hase pri"e an% 'ul'ill his part o' the "ontra"t, an% that the pro#ision requiring a !an%ator- returnHrei!&urse!ent o' the P4/,/// // in "ase pri#ate respon%ent $oul% 'ail to e0e"t the squatters $ithin the 9/<%a- perio% $as not a penal "lause Thus, it "on"lu%e%: ;>@ERE3ORE, the %e"ision appeale% 'ro! is REVERSED an% SET 2SIDE, an% a ne$ one entere% %e"laring the "ontra"t o' "on%itional sale %ate% June *, )*++ "an"elle% an% or%ering the %e'en%ant<appellee to a""ept the return o' the %o$npa-!ent in the a!ount o' P4/,/// // $hi"h $as %eposite% in the "ourt &elo$ No pronoun"e!ent as to "osts ; )) 3ailing to o&tain a re"onsi%eration, petitioner 'ile% his petition 'or re#ie$ on "ertiorari raising issues that, in 'ine, "enter on the nature o' the "ontra"t a%#erte% to an% the P4/,/// // re!ittan"e !a%e &- petitioner ( er0e/!e+ /o#!r*/! o0 $*1e m*- e"!.er be *b$o12!e or /o#+"!"o#*1 12 +e e#+"#8 o# 3.e!.er !.e *8reeme#! "$ +evo"+ o0, or $2b5e/! !o, *#- /o#+"!"o# "m o$e+ o# !.e *$$"#8 o0 !"!1e o0 !.e !."#8 !o be /o#ve-e+ or o# !.e ob1"8*!"o# o0 *r!- !.ere!o. >hen o$nership is retaine% until the 'ul'ill!ent o' a positi#e "on%ition the &rea"h o' the "on%ition $ill si!pl- pre#ent the %ut- to "on#e- title 'ro! a"quiring an o&ligator- 'or"e I' the /o#+"!"o# is i!pose% on an o&ligation o' a part- $hi"h is #o! /om 1"e+ 3"!., the other part- !a- e"!.er re02$e !o ro/ee+ or 3*"ve $*"+ /o#+"!"o# E2rt )4:4, Ci#il Co%eF >here, o' "ourse, !.e /o#+"!"o# "$ "m o$e+

2 o# !.e er0e/!"o# o0 !.e /o#!r*/! "!$e10, !.e 0*"12re o0 $2/. /o#+"!"o# 3o21+ reve#! !.e 52r"+"/*1 re1*!"o# "!$e10 0rom /om"#8 "#!o e9"$!e#/e. )8 In %eter!ining the real "hara"ter o' the "ontra"t, the title gi#en to it &- the parties is not as !u"h as signi'i"ant as its su&stan"e 3or e(a!ple, a %ee% o' sale, although %eno!inate% as a %ee% o' "on%itional sale, !a- &e treate% as a&solute in nature, i' title to the propert- sol% is not reser#e% in the #en%or or i' the #en%or is not grante% the right to unilaterall- res"in% the "ontra"t pre%i"ate% on the 'ul'ill!ent or non<'ul'ill!ent, as the "ase !a- &e, o' the pres"ri&e% "on%ition ): The ter! :/o#+"!"o#: in the "onte(t o' a per'e"te% "ontra"t o' sale pertains, in realit-, to the /om 1"*#/e b- o#e *r!- o0 *# 2#+er!*;"#8 !.e 0210"11me#! o0 3."/. 3o21+ be/;o#, "# !2r#, !.e +em*#+*b"1"!- o0 !.e re/" ro/*1 re$!*!"o# o0 !.e o!.er *r!-. The re"ipro"al o&ligations re'erre% to $oul% nor!all- &e, in the "ase o' #en%ee, the pa-!ent o' the agree% pur"hase pri"e an%, in the "ase o' the #en%or, the 'ul'ill!ent o' "ertain e(press $arranties E$hi"h, in the "ase at &en"h is the ti!el- e#i"tion o' the squatters on the propert-F It $oul% &e 'utile to "hallenge the agree!ent here in question as not &eing a %ul- per'e"te% "ontra"t 2 sale is at on"e per'e"te% $here a person Ethe sellerF o&ligates hi!sel', 'or a pri"e "ertain, to %eli#er an% to trans'er o$nership o' a spe"i'ie% thing or right to another Ethe &u-erF o#er $hi"h the latter agrees )4 The o&0e"t o' the sale, in "ase &e'ore us, $as spe"i'i"all- i%enti'ie% to &e as ),*4.<square !eter lot in San Dionisio, Para7aque, RiBal, "o#ere% &- Trans'er Certi'i"ate o' Title No 89):/. o' the Registr- o' Dee%s 'or Pasig an% therein te"hni"all- %es"ri&e% The pur"hase pri"e $as 'i(e% at P),49),9// //, o' $hi"h P4/,/// // $as to &e pai% upon the pa-a&le ;:4 %a-s a'ter the re!o#al o' all squatters 'ro! the a&o#e %es"ri&e% propert- ; 'rom !.e mome#! !.e /o#!r*/! "$ er0e/!e+, !.e *r!"e$ *re bo2#+ #o! o#1- !o !.e 0210"11me#! o0 3.*! .*$ bee# e9 re$$1- $!" 21*!e+ b2! *1$o !o *11 !.e /o#$e42e#/e$ 3."/., *//or+"#8 !o !.e"r #*!2re, m*- be "# ;ee "#8 3"!. 8oo+ 0*"!., 2$*8e *#+ 1*3. Un%er the agree!ent, pri#ate respon%ent is o&ligate% to e#i"t the squatters on the propert- The e0e"t!ent o' the squatters is a "on%ition the operati#e a"t o' $hi"h sets into !otion the perio% o' "o!plian"e &- petitioner o' his o$n o&ligation, i e , to pa- the &alan"e o' the pur"hase pri"e )r"v*!e re$ o#+e#!<$ 0*"12re !o :remove !.e $42*!!er$ 0rom !.e ro er!-: 3"!."# !.e $!" 21*!e+ er"o+ 8"ve$ e!"!"o#er !.e r"8.! !o e"!.er re02$e !o ro/ee+ 3"!. !.e *8reeme#! or 3*"ve !.*! /o#+"!"o# "# /o#$o#*#/e 3"!. (r!"/1e 15=5 o0 !.e %"v"1 %o+e. )9 This option "learl- &elongs to petitioner an% not to pri#ate respon%ent >e share the opinion o' the appellate "ourt that the un%erta1ing require% o' pri#ate respon%ent %oes not "onstitute a ;potestati#e "on%ition %epen%ent solel- on his $ill; that !ight, other$ise, &e #oi% in a""or%an"e $ith 2rti"le ))+. o' the Ci#il Co%e )I &ut a :m"9e+: /o#+"!"o# :+e e#+e#! #o! o# !.e 3"11 o0 !.e ve#+or *1o#e b2! *1$o o0 !."r+ er$o#$ 1";e !.e $42*!!er$ *#+ 8over#me#! *8e#/"e$ *#+ er$o##e1 /o#/er#e+.; >e !ust hasten to a%%, ho$e#er, that 3.ere !.e $o6/*11e+ : o!e$!*!"ve /o#+"!"o#: "$ "m o$e+ #o! o# !.e b"r!. o0 !.e ob1"8*!"o# b2! o# "!$ 0210"11me#!, o#1- !.e /o#+"!"o# "$ *vo"+e+, 1e*v"#8 2#*00e/!e+ ob1"8*!"o# "!$e10.

In "ontra"ts o' sale parti"ularl-, 2rti"le )4:4 o' the Ci#il Co%e, a'ore!entione%, allo$s the o&ligee to "hoose &et$een pro"ee%ing $ith the agree!ent or $ai#ing the per'or!an"e o' the "on%ition It is this pro#ision $hi"h is the pertinent rule in the "ase at &en"h @ere, e#i%entl-, petitioner has $ai#e% the per'or!an"e o' the "on%ition i!pose% on pri#ate respon%ent to 'ree the propert- 'ro! squatters ./ In an- "ase, r"v*!e re$ o#+e#!<$ */!"o# 0or re$/"$$"o# "$ #o! 3*rr*#!e+ She is not the in0ure% part- The r"8.! o0 re$o12!"o# o0 * *r!- !o *# ob1"8*!"o# un%er (r!"/1e 1191 o' the Ci#il Co%e is pre%i"ate% on a bre*/. o0 0*"!. b- !.e o!.er *r!- v"o1*!e$ !.e re/" ro/"!be!3ee# !.em. It is pri#ate respon%ent $ho has 'aile% in her o&ligation un%er the "ontra"t Petitioner %i% not &rea"h the agree!ent @e has agree%, in 'a"t, to shoul%er the e(penses o' the e(e"ution o' the 0u%g!ent in the e0e"t!ent "ase an% to !a1e arrange!ent $ith the sheri'' to e''e"t su"h e(e"ution In his letter o' .8 June )*+*, "ounsel 'or petitioner has ten%ere% pa-!ent an% %e!an%e% 'orth$ith the e(e"ution o' the %ee% o' a&solute sale Parentheti"all-, this o''er to pa-, hiring &een !a%e prior to the %e!an% 'or res"ission, assu!ing 'or the sa1e o' argu!ent that su"h a %e!an% is proper un%er 2rti"le )4*. o' the Ci#il Co%e, $oul% li1e$ise su''i"e to %e'eat pri#ate respon%entJs prerogati#e to res"in% thereun%er There is no nee% to still &ela&or the question o' $hether the P4/,/// // a%#an"e pa-!ent is rei!&ursa&le to petitioner o' 'or'eita&le &- pri#ate respon%ent, sin"e, on the &asis o' our 'oregoing "on"lusions, the !atter has "ease% to &e an issue Su''i"e it to sa- that e!"!"o#er .*v"#8 o !e+ !o ro/ee+ 3"!. !.e $*1e, #e"!.er m*- e!"!"o#er +em*#+ "!$ re"mb2r$eme#! 0rom r"v*!e re$ o#+e#! #or m*- r"v*!e re$ o#+e#! $2b5e/! "! !o 0or0e"!2re. >@ERE3ORE, the questione% %e"ision o' the Court o' 2ppeals is here&- REVERSED 2ND SET 2SIDE, an% another is entere% or%ering petitioner to pa- pri#ate respon%ent the &alan"e o' the pur"hase pri"e an% the latter to e(e"ute the %ee% o' a&solute sale in 'a#or o' petitioner No "osts SO ORDERED 3eli"iano, Ro!ero, ,elo an% Pangani&an, JJ , "on"ur 3ootnotes ) . 8 : 4 9 I + * Re"or%s, pp 9/<9) E(h * E(h . Re"or%s, p ))9 E(h +<6 E(h D Re"or%s, pp I:<I4 Presi%e% &- Ju%ge 6uena#entura J Guerrero Re"or%s, p ./4

)/ Penne% &- 2sso"iate Justi"e 3er!in 2 ,artin , Jr an% "on"urre% in &- 2sso"iate Justi"es E!etrio C Cui an% CeBar D 3ran"is"o )) Rollo, p :9 ). 2rt ):4+, se"on% paragraph, Ci#il Co%e o' the Philippines )8 See 2ng ?u 2sun"ion , et al , #s Court o' 2ppeals, .8+ SCR2 9/. ): I&i% , Vol V, p 8 "iting Dignos # Court o' 2ppeals, No 5<4*.99, 3e&ruar- .*, )*++, )4+ SCR2 8I4 )4 2rt ):I4 The "ontra"t o' sale is per'e"te% at the !o!ent there is a !eeting o' !in%s upon the thing $hi"h is the o&0e"t o' the "ontra"t an% upon the pri"e 3ro! that !o!ent, the parties !a- re"ipro"all- %e!an% per'or!an"e, su&0e"t to the pro#isions a o' la$ go#erning the 'or! o' "ontra"ts )9 2rt )4:4 >here the o&ligation o' either part- to a "ontra"t o' sale is su&0e"t to an"on%ition $hi"h is not per'or!e%, su"h part- !a- re'use to pro"ee% $ith the "ontra"t or he !a$ai#e per'or!an"e o' the "on%ition I' the other part- has pro!ise% that the "on%ition shoul% happen or &e per'or!e%, su"h 'irst !entione% part- !a- also treat the non per'or!an"e o' the "on%ition as a &rea"h o' $arrant>here the o$nership in the thing has not passe%, the &u-er !a- treat the 'ul'ill!ent &- the seller o' his o&ligation to %eli#er the sa!e as %es"ri&e% an% as $arrante% e(pressl- or &- i!pli"ation in the "ontra"t o' sale as a "on%ition o' the o&ligation o' the &u-er to per'or! his pro!ise to a""ept an% pa- 'or the thing )I 2rt ))+. >hen the 'ul'ill!ent o' the "on%ition %epen%s upon the sole $ill o' the %e&tor, the "on%itional o&ligation shall &e #oi% I' it %epen%s upon the "han"e or upon the $ill o' a thir% person, the o&ligation shall ta1e e''e"t in "on'or!it- $ith the pro#isions o' this Co%e )+ De"ision, p )I )* See Os!e7a #s Ra!a, ): Phil ** ./ See Intestate Estate o' the 5ate Ri"ar%o P Pres&itero , Sr # Court o' 2ppeals, .)I SCR2 8I. .) In 6o-sa$ # Interphil Pro!otions, In" E):+ SCR2 984, 9:8F, the Court has sai%: ; The po$er to res"in% is gi#en to the in0ure% part- J>here the plainti'' is the part- $ho %i% not per'or! the un%erta1ing $hi"h $as &oun% &- the ter!s a o' the agree!ent to per'or!, he is not entitle% to insist upon the per'or!an"e o' the "ontra"t &- the %e'en%ant, or re"o#er %a!ages &reason o' his o$n &rea"h ; .. Deiparine, Jr # Court o' 2ppeals, ..) SCR2 4/8, 4)8 "iting Uni#ersal 3oo% Corporation # Court o' 2ppeals, 88 SCR2 ) .8 See O"a!po # Court o' 2ppeals supra 2rt )4*. states: ;In the sale o' i!!o#a&le propert-, e#en though it !a- ha#e &een stipulate% that upon the 'ailure to pa- the pri"e at the ti!e agree% upon the res"ission i' the "ontra"t shall o' right ta1e pla"e, the #en%ee !a- pa-, e#en a'ter the e(piration o' the perio%, as long as no %e!an% 'or re"ission o' the "ontra"t has &een !a%e upon hi! either 0u%i"iall- or &- notarial a"t 2'ter the %e!an%, the "ourt !a- not grant hi! a ne$ ter! ;