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Cortes vs. Court of Appeals 494 SCRA 570 July 12 2006
Cortes vs. Court of Appeals 494 SCRA 570 July 12 2006
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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* FIRST DIVISION.
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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YNARES-SANTIAGO, J.:
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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7 Id., at p. 102.
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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ART. 1169
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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. From the moment one of the
parties fulfills his obligation, delay by the other begins. (Emphasis
supplied)
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
9 Asuncion v. Evangelista, 375 Phil. 328, 356; 316 SCRA 848, 872
(1999), citing Tolentino, Arturo, Commentaries and Jurisprudence on the
Civil Code of the Phils., Vol. IV, 1985 edition, p. 175.
577
[Q] Now, why did you deliver these three titles to the
plaintiff despite the fact that it has not been paid in
full the agreed down payment?
A Well, the broker told me that the down payment will
be given if I surrender the titles.
Q Do you mean to say that the plaintiff agreed to pay in
full the down payment of P2,200,000.00 provided you
surrend er or entrust to the plaintiff the titles?
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A Yes, sir.
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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10 Agas v. Sabico, G.R. No. 156447, April 26, 2005, 457 SCRA 263, 275.
11 Rollo, p. 62.
12 TSN, March 11, 1986, Records, p. 324.
578
ATTY. ANTARAN
Q Of course, you have it transferred in the name of the
plaintiff, the title?
A Upon full payment.
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ATTY. SARTE
Q When you said upon full payment, are you referring to
the agreed down payment of P2,200,000.00?
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A Yes, sir.
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13 Id., at p. 373.
14 „1. Upon execution of this instrument, the Vendee shall pay unto the
Vendor sum of TWO MILLION AND TWO HUNDRED THOUSAND
(P2,200,000.00) PESOS, Philippine Currency, less all advances paid by
the Vendee to the Vendor in connection with the sale. (Emphasis
supplied).
15 Eastern Assurance & Surety Corporation v. Intermediate Appellate
Court, G.R. No. 69450, November 22, 1988, 179 SCRA 561, 567.
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SUPREME COURT REPORTS ANNOTATED VOLUME 494 1/10/22, 10:01 PM
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A Yes, sir.
COURT
Q How do you know that it was delivered to the plaintiff
by the son of the broker?
A The broker told me that she delivered the title to the
plaintiff.
ATTY. ANTARAN
Q Did she not show
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you any receipt that she delivered to
[Mr.] Dragon the title without any receipt?
A I have not seen any receipt.
Q So, therefore, you are not sure whether the title has
been delivered to the plaintiff or not. It is only upon the
allegation of the broker?
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A Yes, sir.
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has completed their part in their reciprocal obligation.
Cortes is yet to deliver the original copy of the notarized
Deed and the TCTs, while the Corporation is yet to pay in
full the agreed down payment of P2,200,000.00. This
mutual 21delay of the parties cancels out the effects 22
of
default, such that it is as if no one is guilty of delay.
We find no merit in CortesÊ contention that the failure of
the Corporation to act on the proposed settlement at the
pretrial must be construed against the latter. Cortes
argued that with his counselÊs offer to surrender the
original Deed and the TCTs, the Corporation should have
consigned the balance of the down payment. This argument
would have been correct if Cortes actually surrendered the
Deed and the TCTs to the Corporation. With such delivery,
the Corporation would have been placed in default if it
chose not to pay in full the required down payment. Under
Article 1169 of the Civil Code, from the moment one of the
parties fulfills his obligation, delay by the other begins.
Since Cortes did not perform his part, the provision of the
contract requiring the Corporation to pay in full the down
payment never acquired obligatory
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