CORTESvs.

CourtofAppeals
494SCRA570(Art.1169)
Facts:
Forthepurchasepriceof3.7M,VillaEsperanzaDevelopmentCorporation(vendee)andAntonioCortes
(vendor)enteredintoacontractofsaleoverthelotslocatedatBaclaran,Paraaque,MetroManila.The
CorporationadvancedtoCortesthetotalsumofP1,213,000.00.InSeptember1983,thepartiesexecuteda
deedofabsolutesaleonthefollowingterms:
TheCorporationshalladvance2.2Masdownpayment,andCortesshalllikewisedelivertheTCTforthe3
lots.
Thebalanceof1.5Mshallbepayablewithinayearfromthedateoftheexecution.
TheCorporationfiledtheinstantcaseforspecificperformanceseekingtocompelCortestodeliverthe
TCTsandtheoriginalcopyoftheDeedofAbsoluteSale.AccordingtotheCorporation,despiteits
readinessandabilitytopaythepurchaseprice,Cortesrefuseddeliveryofthesoughtdocuments.Itprayed
fordamages,attorneysfeesandlitigationexpenses.Cortesclaimedthattheownersduplicatecopyofthe
threeTCTsweresurrenderedtotheCorporationanditisthelatterwhichrefusedtopayinfulltheagreed
downpayment.
RTCrenderedadecisionrescindingthesaleanddirectedCortestoreturntotheCorporationtheamountof
P1,213,000.00,plusinterest.CAreversedthedecisionanddirectedCortestoexecuteaDeedofAbsolute
SaleconveyingthepropertiesandtodeliverthesametotheCorporationtogetherwiththeTCTs,
simultaneouswiththeCorporationspaymentofthebalanceofthepurchasepriceofP2,487,000.00.
Issue:
WONCortesdeliveredtheTCTsandtheoriginalDeedtotheCorporation?NO.
WONthereisdelayintheperformanceofthepartiesobligationthatwouldjustifytherescissionofthe
contractofsale?THEREISDELAYINBOTHPARTIES(compensationmorae)
Held:
CortesaversthathedeliveredtheTCTsthroughthebrokersson.Hefurtheraversthatthebrokersson
deliveredittothebroker,whointurndeliveredthemtotheCorporation.
MarcosaSanchezsunrebuttedtestimonyisthat,shedidnotreceivetheTCTs.Shealsodeniedknowledge
ofdeliverythereoftoherson,Manny.
WhatfurtherstrengthenedthefindingsoftheCourtofAppealsthatCortesdidnotsurrenderthesubject
documentswastheofferofCortescounselatthepretrialtodelivertheTCTsandtheDeedofAbsolute
SaleiftheCorporationwillpaythebalanceofthedownpayment.Indeed,ifthesaiddocumentswere
alreadyinthehandsoftheCorporation,therewasnoneedforCortescounseltomakesuchoffer.
Consideringthattheirobligationwasreciprocal,performancethereofmustbesimultaneous.Themutual
inactionofCortesandtheCorporationthereforegaverisetoacompensationmoraeordefaultonthepartof
bothpartiesbecauseneitherhascompletedtheirpartintheirreciprocalobligation.Cortesisyettodeliver
theoriginalcopyofthenotarizedDeedandtheTCTs,whiletheCorporationisyettopayinfulltheagreed
downpaymentofP2,200,000.00.Thismutualdelayofthepartiescancelsouttheeffectsofdefault,such
thatitisasifnooneisguiltyofdelay.
UnderArticle1169oftheCivilCode,fromthemomentoneofthepartiesfulfillshisobligation,delayby
the other begins. Since Cortes did not perform his part, the provision of the contract requiring the
Corporationtopayinfullthedownpaymentneveracquiredobligatoryforce.