Case Summary

JOSEFINATAYAG, RICARDO GALICIA, TERESITAGALICIA, EVELYN GALICIA, JUAN GALICIA, JR.
and
RODRIGO GALICIA, petitioners,
vs.
COURT OF APPEALS and ALBRIGIDO LEYVA, respondents
GR NO. 96053 PONENTE: DATE: DIGESTED BY:
Perlas-Bernabe J. September 16, Liane Vina G. Ocampo
2015
PETITIONER/S: RESPONDENTS:
JOSEFINATAYAG, RICARDO COURT OF APPEALS and ALBRIGIDO
GALICIA, TERESITAGALICIA, EVELYN LEYVA
GALICIA, JUAN GALICIA, JR. and
RODRIGO GALICIA,
FACTS:
The heirs of Juan Galicia brought an action for breach of the conditions on the deed of
conveyance executed by Juan Galicia in favor of private respondent, Albrigido
Leyvaunder the following terms:
 P3,000.00 is HEREBY acknowledged to have been paid upon the execution of

this agreement;
 P10,000.00 shall be paid within ten days from and after the execution of this
agreement;
 P10,000.00 represents the VENDORS' indebtedness with the Philippine
Veterans Bank which is hereby assumed by the VENDEE; and
 P27,000.00 shall be paid within one year from and after the execution of this
instrument.
There is no dispute that the sum of P3,000.00 listed as first installment was received by
Juan Galicia, Sr. According to petitioners, of the P10,000.00 to be paid within ten days
from execution of the instrument, only P9,707.00 was tendered to, and received by,
them on numerous occasions from May 29, 1975, up to November 3, 1979. Concerning
private respondent's assumption of the vendors' obligation to the Philippine Veterans
Bank, the vendee paid only the sum of P6,926.41 while the difference the indebtedness
came from Celerina Labuguin. Petitioners asserted that the P27,000.00 was not paid to
them. Because of the apprehension that the heirs of Juan Galicia, Sr. are disavowing
the contract inked by their predecessor, private respondent filed the complaint for
specific performance.
The trial court upheld private respondent's theory on the basis of constructive fulfillment
under Article 1186 and estoppel through acceptance of piecemeal payments In
accordance with the provisions of Article 1235 of the Civil Code.
Anent the P10,000.00 specified as second installment, the lower court counted against
the vendors the candid statement of Josefina Tayag who and made the admission that
the check issued as payment thereof was nonetheless paid on a staggered basis when
the check was dishonored. Regarding the third condition, the trial court noted that
plaintiff below paid more than P6,000.00 to the Philippine Veterans Bank but Celerina
Labuguin, the sister and co-vendor of Juan Galicia, Sr. paid P3,778.77 which
circumstance was construed to be a ploy under Article 1186 "for the purpose of
withdrawing the title to the lot". The acceptance by petitioners of the various
payments even beyond the periods agreed upon, was perceived by the lower court as
tantamount to faithful performance of the obligation pursuant to Article 1235 of the
Civil Code. Furthermore, the trial court noted that private respondent consigned
P18,520.00, an amount sufficient to offset the remaining balance, leaving the sum of
P1,315.00 to be credited to private respondent.
ISSUE (S):
Whether the payments actually took place?
RULING:
YES. It is clear that the second instalment has been paid to the heirs of the deceased.
Because of Josefina Tayag's admission in court that she was paid P10 000, Juan Galicia,
Sr. was fully liquidated. Therefore, petitioner's assertion that "the evidence in the register
does not support this conclusion" is incorrect.
As regards the third issue of the contract, it may be recalled that: Article 1186 of the Civil
Code has been applied by the respondent court to constructive fulfilment. which
petitioners claim should not have been appreciated because they are the obligees while
the proviso in point speaks of the obligor. But, petitioners must concede
that in a reciprocal obligation like a contract of purchase, both parties are mutually
obligors and also obliges, and any of the contracting parties may, upon non-fulfillment
by the other privy of his part of the prestation, rescind the contract or seek fulfillment
(Article 1191, Civil Code).
In short, it is puerile for petitioners to say that they are the only obligees under the
contract since they are also bound as obligors to respect the stipulation in permitting
private respondent to assume the loan with the Philippine Veterans Bank which
petitioners impeded when they paid the balance of said loan. As vendors and
expected to carry out the final deed of sale as soon as the balance is paid in full as
determined subsequently.
IMPORTANT PHRASES, QUOTES,TERMS (not the main doctrine) MENTIONED IN

THIS CASE
Principle of anticipation, Income Productivity approach, just compensation

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JOSEFINATAYAG, RICARDO GALICIA, TERESITAGALICIA, EVELYN GALICIA, JUAN GALICIA, JR.

 P3,000.00 is HEREBY acknowledged to have been paid upon the execution of

IMPORTANT PHRASES, QUOTES,TERMS (not the main doctrine) MENTIONED IN

Principle of anticipation, Income Productivity approach, just compensation

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