GR 108169; (August, 1999) (Digest)
G.R. No. 108169. August 25, 1999.
SPOUSES VENANCIO DAVID and PATRICIA MIRANDA DAVID and FLORENCIA VENTURA VDA. DE BASCO, petitioners, vs. ALEJANDRO and GUADALUPE TIONGSON, respondents.
FACTS
On February 23, 1989, three sets of plaintiffs—spouses Feliciano and Macaria Ventura, spouses Venancio and Patricia David, and Florencia Ventura Vda. de Basco—filed a complaint for specific performance with damages against respondents spouses Alejandro and Guadalupe Tiongson. They alleged that respondents sold them lots in Cabalantian, Bacolor, Pampanga: a 300 sq.m. lot to the Venturas for P16,500.00; a 308 sq.m. portion of Lot No. 1547-G-2-G to the Davids for P15,000.00; and two lots (109 sq.m. and 60 sq.m.) to Basco for P10,400.00. The agreement was that upon full payment, respondents would execute deeds of absolute sale and cause the issuance of titles.
The Venturas fully paid by October 28, 1985, took possession, built a house, and fenced the lot, but respondents refused to execute the deed. The Davids claimed full payment of P15,050.00 by October 31, 1985, per receipts, but were not given possession and respondents refused the deed. Basco claimed full payment of P12,945.00 by February 6, 1984, per receipts, but respondents also refused.
Respondents were declared in default for failure to file an answer. The trial court ruled for all plaintiffs, ordering respondents to execute deeds of sale and issue titles, and pay moral damages. On appeal, the Court of Appeals modified the decision. It upheld the perfected contract of sale only for the Venturas, ordering execution of the deed and issuance of title. For the Davids, it found no perfected contract due to lack of agreement on price and installment terms, and because the installment agreement was not in writing, making it unenforceable under the Statute of Frauds; it ordered refund of payments. For Basco, it found no perfected contract for the 109 sq.m. lot due to lack of determinateness, and for the 60 sq.m. lot due to lack of agreed price; it also ordered a refund.
ISSUE
Whether the contracts of sale between respondents and (1) spouses David and (2) Florencia Ventura Vda. de Basco were perfected and enforceable, thereby entitling them to specific performance.
RULING
The Supreme Court reversed the Court of Appeals and ruled in favor of petitioners David and Basco.
1. For the Davids: The contract was perfected. The price was certain at P15,000.00, as evidenced by receipts and testimony. The notations “balance to be paid on installment to be agreed upon later on” and “Subject to further discussion later on” referred only to the manner of paying the balance of the already agreed total price, not to the price itself. The overpayment (P50.00, not P115.00) did not negate the agreed price. The Statute of Frauds (Article 1403[2][d]) was inapplicable because the contract was not an installment sale where the price was payable over a long period; it was a contract of sale on installment payments where ownership passed to the buyer upon delivery, and such contracts do not require the installment agreement to be in writing to be enforceable. The Davids’ full payment was established by receipts.
2. For Basco: The contracts for both lots were perfected.
* For the 109 sq.m. lot: The object was determinate as it was a portion of a specific registered lot (Lot No. 1547-G-2-G, TCT No. 187751-R). The price was certain at P6,425.00 (P59/sq.m.), as proven by receipts showing full payment.
* For the 60 sq.m. lot: The object was determinate as part of a lot covered by TCT No. 200835-R. The price was certain at P6,500.00, as evidenced by receipts showing full payment. The discrepancy between a receipt stating a price of P70/sq.m. (P4,200 total) and the amount paid (P6,500) was explained as an error in the receipt, and the true price was what was paid and accepted.
The Court ordered respondents to execute deeds of absolute sale and cause the issuance of titles for: (1) the 300 sq.m. lot sold to the Davids; (2) the 109 sq.m. lot sold to Basco; and (3) after segregation, the 60 sq.m. lot sold to Basco. The award of moral damages was deleted. The decision as to the Venturas was affirmed.