You are on page 1of 1

Agcaoili v.

GSIS (1988) 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
Petitioners: Marcelo Agcaoili incumbent upon him
Respondents: Government Service Insurance System (GSIS)
RULING + RATIO: NO, there was no delay on the part of Agcaoli in
DOCTRINE: making payments to justify cancellation of contract.
Art. 1169: In reciprocal obligations, neither party incurs delay if the
other does not comply or is not ready to comply in a proper manner 1. There was already a perfected contract of sale between the parties.
with what is incumbent upon him. There was a meeting of minds upon the purchase by Agcaoli of a
determinate house and lot from GSIS at a definite price which is payable
FACTS: in amortizations and from that moment the parties acquired the right to
1. GSIS approved an application of Agcaoli for the purchase of a house and reciprocally demand performance.
lot in the GSIS Housing Project at Nangka, Marikina, subject to the 2. It was the duty of the GSIS, as seller, to deliver the thing sold in a
condition that the latter should occupy the house. condition suitable for its enjoyment by the buyer, in other words to deliver
2. Agcaoli lost no time in occupying the house but could not stay in it and the house subject of the contract in a reasonably livable state.
had to leave the very next day becucase the house was in a state that 3. However, GSIS failed to do.
civilized occupation was not possible- no ceilng, stairs, toilet, kitchen. 4. Since GSIS failed to fulfill its obligation, and was not willing to put the
3. However, Agcaoli asked Villanueva, a homeless friend, to stay in the house in a habitable state, it cannot invoke Agcaolis suspension of
premises as some sort of watchman, pending completion of the payment as cause to cancel the contract between them.
construction of the house. 5. In reciprocal ient obligation, neither party incur in delay of the other does
4. Agcaoli after paying the first installment and other fees, refused to make not comply or is not ready to comply in a proper manner with what is
further payment of other stipulated installments until GSIS had made the incumbent upon him.
house habitable. 6. Nor may the GSIS succeed in justifying its cancellation of the award by
5. However, GSIS refused to do so, opting instead to cancel the award and the claim that Agcaoli had not complied with the condition of occupying
demanded the vacation by Agcaoli of the premises. the house within three (3) days. The record shows that Agcaoli did try to
6. The house and lot was consequently awarded to another applicant so fulfill the condition.
Agcaoili sued GSIS in CFI of Manila for specific performance with
damages and having obtained a favorable judgment, the cases was DISPOSITION:
appealed by the GSIS. WHEREFORE, the judgment of the Court a quo insofar as it invalidates and
sets aside the cancellation by respondent GSIS of the award in favor of
ISSUE: WON Agcaoili incurred delay in fulfilling his obligation to make petitioner Agcaoili of Lot No. 26, Block No. (48) 2 of the GSIS low cost
payments to GSIS housing project at Nangka, Marikina, Rizal, and orders the former to respect
the aforesaid award and to pay damages in the amounts specified, is
PROVISION: Art. 1169 AFFIRMED as being in accord with the facts and the law.