Suria vs IAC, GR No. 73893, January 30, 1987
Subject: Obligations and Contracts
FACTS
Spouses Crispin being the owner of a parcel of land
entered into a Deed of Sale with mortgage (which contains the stipulation that
grants to the vendors mortgages the right to foreclosure “in the event of the
failure of the vendees-mortgagors to comply with any provisions of this
mortgage), with herein petitioner.
However, petitioners paid only one installment. All
others remained unsettled. And despite repeated demands, petitioners failed to
comply.
Spouses Crispin then filed a complaint for rescission
of contract and damages.
Meanwhile, petitioners offered to pay all outstanding
balance under the Deed of Sale with mortgage. But the spouses Crispin rejected
the offer.
Petitioners then moved to dismiss the spouses’ complaint
on the ground that spouses Crispin is not entitled to subsidiary remedy to
rescission because of the presence of the remedy of foreclosure.
ISSUE
Whether or not it is subsidiary and equitable remedy
of rescission available in the presence of a remedy of foreclosure in the light
of the express provision of Article 1383 of the Civil Code that: “The action
for rescission is subsidiary; it cannot be instituted except when the party
suffering damage has no other legal means to obtain reparation for the same.
RULING
No, the subsidiary and equitable remedy of rescission
is not available in this case.
Under the law (Art 1191), the power to rescind
obligations is implied in reciprocal ones, in case one of the obligors should
not comply with what is incumbent upon him. The injured party may choose
between fulfillment and the rescission of the obligation, with the payment of
damages in either case. He may also seek rescission even after he has chosen
fulfillment. If the latter should become impossible.
In this case, Article 1191 on reciprocal obligation is
not applicable under the facts of this case. Moreover, Article 1383 of the
Civil Code provides that the action for rescission is subsidiary. It cannot be
instituted except when the party suffering damage had no other legal means to
obtain reparation from the same.
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