76. J.m. Tuason & Co. Inc. Vs. Javier.doc

G.R. L-28569 J.M. TUASON & CO., INC. VS. JAVIER Art. 1592. In the sale of immovable property, even though it may have been stipulated that upon failure to pay the price at the time agreed upon the rescission of the contract shall of right take place, the vendee may pay, even after the expiration of the period, as long as no demand for rescission of the contract has been made upon him either judicially or by notarial act. After the demand, the court may not grant him new term. February 27, 1970 FACTS: On September 7, 1954, petitioner entered a contract to sell with respondent for a parcel of land for the sum of Php3,691.20 with 10% interest per annum, payable in monthly instalment of Php43.92 a month for a period of ten (10) years. Further stipulated in the contract, that upon failure of respondent to pay the monthly instalment, a one month grace period to pay such instalment will be given together with the monthly instalment falling on the said grace period. Failure to pay both monthly instalments shall be additional penalty of 10% interest. Ninety (90) days from the end of the grace period, petitioner can rescind the contract, and the payments made by respondent will be considered as rentals. Respondent paid only until Jan. 5, 1962. Thereafter failed to pay until grace period, consequently petitioner rescind the contract then asked respondent to vacate the said land. Non compliance to vacate by respondent, petitioner filed an action to the CFI for rescission of contract. The decision was rendered in favour of respondent applying Art. 1592 of NCC. Hence petitioner appealed to SC contending that Art. 1592 is applicable only to contract of sale not in contract to sell. ISSUE: Did the CFI erroneously apply Article 1592 of the New Civil Code? HELD: Yes.