This case has been cited 2 times or more.
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2010-03-02 |
BRION, J. |
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| Unless the parties stipulated it, rescission is allowed only when the breach of the contract is substantial and fundamental to the fulfillment of the obligation.[34] Whether the breach is slight or substantial is largely determined by the attendant circumstances.[35] | |||||
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2001-12-03 |
QUISUMBING, J. |
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| Obligations under an option to buy are reciprocal obligations.[12] The performance of one obligation is conditioned on the simultaneous fulfillment of the other obligation.[13] In other words, in an option to buy, the payment of the purchase price by the creditor is contingent upon the execution and delivery of a deed of sale by the debtor. In this case, when private respondents opted to buy the property, their obligation was to advise petitioners of their decision and their readiness to pay the price. They were not yet obliged to make actual payment. Only upon petitioners' actual execution and delivery of the deed of sale were they required to pay. As earlier stated, the latter was contingent upon the former. In Nietes vs. Court of Appeals, 46 SCRA 654 (1972), we held that notice of the creditor's decision to exercise his option to buy need not be coupled with actual payment of the price, so long as this is delivered to the owner of the property upon performance of his part of the agreement. Consequently, since the obligation was not yet due, consignation in court of the purchase price was not yet required. | |||||