Tayag v.

Court of Appeals
G.R. No. 96053
March 3, 1993

MELO, J.
Facts:
Private respondent, Albrigado Leyva, filed an action for specific performance against the
petitioners, who are the heirs of Galicia, for their unwillingness to abide by the Deed of
Conveyance effected between the sellers, Galicia Sr. and Celerina Labuguin and buyer,
Leyva. The condition of the Deed of Conveyance is that the seller’s debt with the Philippine
Veterans Bank will be assumed by the vendee. The vendors assert that there was breach of
the said condition when Leyva only paid P6,926.41 to the bank, while the remaining amount
came from Celerina Labuguin. Leyva claims that the sellers voluntarily barred the fulfillment
of her obligation to pay the full amount to Philippine Veterans Bank when Celerina Labuguin
paid part of such debt. Both the RTC and CA ruled in favor of Leyva.
Issue:
Is Art. 1186 on constructive fulfillment applicable in this case?
Ruling:
Yes. The Supreme Court ruled that in a reciprocal obligation such as a contract of purchase,
both parties are mutually obligors and obliges at the same time. Any of the contracting
parties, upon non-fulfillment by the other of his part of the prestation, may cancel the
contract or seek fulfillment.

The obligees under the contract are also bound as obligors and should respect the provision
in permitting the petitioner to assume the loan with the Philippine Veterans Bank, which
they have impeded when they paid the balance of the said loan. As sellers, they are should
execute the final deed of sale upon the full payment of the balance.