ROMAN CATHOLIC BISHOP OF MALOLOS V IAC

ROMAN CATHOLIC BISHOP OF MALOLOS, INC.
, Petitioner,
v.
INTERMEDIATE APPELLATE COURT, and ROBES-FRANCISCO REALTY AND

DEVELOPMENT CORPORATION, Respondents.
G.R. No. 72110. November 16, 1990
SARMIENTO, J.:
FACTS:
The property subject matter of the contract consists of a parcel of land in the Province of
Bulacan, issued and registered in the name of the petitioner which it sold to the private
respondent.
On July 7, 1971, the subject contract over the land in question was executed between the
petitioner as vendor and the private respondent through its then president, Mr. Carlos F.
Robes, as vendee, stipulating for a downpayment of P23,930.00 and the balance of
P100,000.00 plus 12% interest per annum to be paid within four (4) years from execution of
the contract. The contract likewise provides for cancellation, forfeiture of previous payments,
and reconveyance of the land in question in case the private respondent would fail to complete
payment within the said period.
After the expiration of the stipulated period for payment, Atty. Adalia Francisco (president of
the company who bought land) wrote the petitioner a formal request that her company be
allowed to pay the principal amount of P100,000.00 in three (3) equal installments of six (6)
months each with the first installment and the accrued interest of P24,000.00 to be paid
immediately upon approval of the said request.
The petitioner formally denied the said request of the private respondent, but granted the
latter a grace period of five (5) days from the receipt of the denial to pay the total balance of
P124,000.00. The private respondent wrote the petitioner requesting an extension of 30 days
from said date to fully settle its account but this was still denied.
Consequently, Atty. Francisco wrote a letter directly addressed to the petitioner, protesting
the alleged refusal of the latter to accept tender of payment made by the former on the last
day of the grace period. But the private respondent demanded the execution of a deed of
absolute sale over the land in question
Atty. Fernandez, wrote a reply to the private respondent stating the refusal of his client to
execute the deed of absolute sale so the petitioner cancelled the contract and considered all
previous payments forfeited and the land as ipso facto reconveyed.
From a perusal of the foregoing facts, we find that both the contending parties have conflicting
versions on the main question of tender of payment.
According to the trial court, it is considered as fatal the failure of Atty. Francisco to present in
court the certified personal check allegedly tendered as payment or, at least, its xerox copy,
or even bank records thereof.
Furthermore, the trial court considered as fatal the failure of Atty. Francisco to present in
court the certified personal check allegedly tendered as payment or, at least, its xerox copy,
or even bank records thereof. Finally, the trial court found that the private respondent had
insufficient funds available to fulfill the entire obligation considering that the latter, through
its president, Atty. Francisco, only had a savings account deposit of P64,840.00, and although
the latter had a money-market placement of P300,000.00, the same was to mature only after
the expiration of the 5-day grace period.
Not satisfied with the said decision, the private respondent appealed to the IAC. The IAC
reversed the decision of the trial court. The IAC, in finding that the private respondent had
sufficient available funds, ipso facto concluded that the latter had tendered payment.
ISSUE:
Whether or not the finding of the IAC that Atty. Francisco had sufficient available funds did
tender payment for the said obligation.
RULING:
1. No.
The Court agreed with the petitioner that a finding that the private respondent had sufficient
available funds on or before the grace period for the payment of its obligation does not
constitute proof of tender of payment by the latter for its obligation within the said period.
Tender of payment involves a positive and unconditional act by the obligor of offering legal
tender currency as payment to the obligee for the former’s obligation and demanding that the
latter accept the same.
Thus, tender of payment cannot be presumed by a mere inference from surrounding

circumstances. At most, sufficiency of available funds is only affirmative of the capacity or
ability of the obligor to fulfill his part of the bargain. The respondent court was therefore in
error. Tender of payment presupposes not only that the obligor is able, ready, and willing,
but more so, in the act of performing his obligation. Ab posse ad actu non vale illatio. "A proof
that an act could have been done is no proof that it was actually done."
the DECISION of the IAC is hereby SET ASIDE and ANNULLED and the DECISION of the trial
court is REINSTATED.

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ROMAN CATHOLIC BISHOP OF MALOLOS, INC.

INTERMEDIATE APPELLATE COURT, and ROBES-FRANCISCO REALTY AND

G.R. No. 72110. November 16, 1990

Thus, tender of payment cannot be presumed by a mere inference from surrounding

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