De Guzman v. Court of Appeals

G.R. No. L-52733, 23 July 1985

FACTS:

On November 29, 1977, the trial court rendered a decision approving a compromise between Pilar de Guzman, Rolando Gestuvo, and Minerva Gestuvo, as sellers, and Leonida P. Singh, the buyer. Singh agreed to pay de Guzman and the Gestuvos, now petitioners, P250,000 for two lots located at Cementina Street, Pasay City at ten o’clock in the morning of January 27, 1978, in the courtroom of Judge Bautista of Pasay City. In case no payment was made, then the petitioners would be immediately entitled to a writ of execution for the possession of the said lots.

Ben Restrivera, in behalf of Singh, on January 24, 1978, deposited P220,000 with the clerk of court. Restrivera on January 27, 1978, tried to deliver to Antonio G. Barredo, petitioners’ counsel, P5,000 cash and P25,000 in postdated checks, or P30,000 to complete the price of P250,000. Barredo refused to accept that payment. On January 30, 1978 (3 days after the deadline) Singh deposited with the clerk of court cash of P30,000.

On that same day, January 30, the petitioners filed a motion for execution. It was opposed by Singh. Judge Bautista in his order of March 27, 1978, denied the motion and ordered the petitioners to execute the corresponding deed of sale. He ordered the clerk of court to release the P250,000 to them.

ISSUE:

Whether or not private respondent substantially complied with the terms of the compromise agreement.

RULING:

The private respondent had substantially complied with the terms and conditions of the compromise agreement. Her failure to deliver to the petitioners the full amount on January 27, 1978, was not her fault. The blame lies with the petitioners. The deposit of the balance of the purchase price was made in good faith and that the failure of the private respondent to deposit the purchase price on the date specified was due to the petitioners who also make no claim that they had sustained damages because of the two days delay, there was substantial compliance with the terms and conditions of the compromise agreement. </span>

 * Case digest by Aisha Mie Faith M. Fernandez, LLB-1, Andres Bonifacio Law School, SY 2017-2018

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