G.R. No. 96053 March 3, 1993
JOSEFINA TAYAG, RICARDO GALICIA, TERESITA GALICIA, EVELYN GALICIA, JUAN GALICIA, JR. and RODRIGO GALICIA, petitioners, vs. COURT OF APPEALS and ALBRIGIDO LEYVA, respondents.

FACTS

On May 28, 1975, Juan Galicia, Sr. and Celerina Labuguin executed a deed of conveyance in favor of Albrigido Leyva involving an undivided one-half portion of a land in Guimba, Nueva Ecija, for P50,000.00. The terms were: (1) P3,000.00 paid upon execution; (2) P10,000.00 within ten days after execution; (3) assumption of the vendors’ P10,000.00 debt with Philippine Veterans Bank; and (4) the P27,000.00 balance within one year. Juan Galicia, Sr. died in 1979. His heirs (petitioners) claimed breach of conditions, asserting that: only P9,707.00 of the second installment was paid; the vendee paid only P6,926.41 of the bank debt, with the difference paid by Celerina Labuguin; and none of the P27,000.00 balance was paid. Leyva filed a suit for specific performance. The trial court ruled in favor of Leyva, applying Article 1186 (constructive fulfillment) and Article 1235 (estoppel by acceptance of piecemeal payments) of the Civil Code. The Court of Appeals affirmed with modifications to the amounts. Petitioners argue for rescission due to non-payment.

ISSUE

Whether the contract may be rescinded due to the vendee’s alleged breach of the payment conditions.

RULING

No. The Supreme Court dismissed the petition and affirmed the Court of Appeals’ decision with a modification on the computation. The right to rescind under Article 1191 was deemed waived. Petitioners, by accepting delayed payments beyond the grace periods and even during the pendency of the suit, are estopped from demanding rescission under Article 1235. The second installment was fully paid, as admitted by petitioner Josefina Tayag. Regarding the bank debt assumption, petitioners impeded Leyva’s performance by paying the balance themselves. On the P27,000.00 balance, consignation of P18,520.00 was valid as there were two or more claimants (heirs). Leyva also paid P13,908.25 directly. After deducting the P3,778.77 petitioners paid to the bank, the total payment exceeded the balance, entitling Leyva to a refund.