G.R. No. 39008, December 12, 1933
NIEVES E. SAÑGA, plaintiff-appellee, vs. SEGUNDO ZABALLERO and FILOMENA SANTOS, defendants-appellants.

FACTS

Nieves E. Sañga sold two parcels of land to spouses Segundo Zaballero and Filomena Santos for P32,000. The buyers paid P10,000 upon registration and executed a mortgage in favor of Sañga for the balance of P22,000, payable in monthly installments of P600. The buyers defaulted on several installments. Sañga filed an action for foreclosure. The trial court ordered the defendants to pay the unpaid installments and allowed foreclosure for future defaults. The defendants appealed, arguing: (1) they were entitled to a price reduction because the land contained fewer coconut trees than estimated; (2) the trial court miscalculated the amount they had already paid; and (3) foreclosure was improper because the mortgage lacked an acceleration clause and the total debt was not yet due.

ISSUE

1. Whether the defendants are entitled to a price reduction due to a deficiency in the number of coconut trees.
2. Whether the trial court correctly computed the amount of installments already paid by the defendants.
3. Whether the mortgage can be foreclosed for default in paying some installments even without an acceleration clause and before the total debt matures.

RULING

1. No. The defendants are not entitled to a price reduction. The parties lived in the same neighborhood and had equal opportunity to inspect the land. The deficiency in the number of coconut trees within the same land area does not warrant rescission or price reduction, especially when the defendants continued with the contract after discovering the fact.
2. No. The trial court erred in computing the payments. Based on the receipts, the defendants had paid P10,200, not P8,750 as found by the trial court. Thus, the balance due is P11,800.
3. Yes. The mortgage can be foreclosed for the unpaid installments. Under Section 259 of the Code of Civil Procedure, default in paying any installment gives the mortgagee the right to foreclose for those installments without waiting for the entire debt to mature. The trial court’s order regarding future installments is also sustained, as the same provision allows the court, upon motion, to order the sale of more property as additional installments become due.

The judgment is AFFIRMED with MODIFICATION regarding the amount paid. The defendants are credited with P10,200 in payments. The plaintiff may, by motion, seek foreclosure for installments that accrued during the pendency of the action.

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