G.R. NO. 151458 - JALLALUDIN ABDULRAHMAN GULAM, VS. SPOUSES CATALINO AND RICARDA SANTOS.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, the foregoing facts considered, the case against the defendant is hereby dismissed. The reciprocal obligation between the plaintiff and the defendant is hereby ordered rescinded under Article 1191 of the Civil Code. This Article recognizes an implied or tacit revolutionary condition in reciprocal obligations. It is a condition imposed exclusively by law, even if there is no corresponding agreement between the parties. In reciprocal obligations, when one party has performed his part of the contract, the other party incurs in delay hence, the party who has performed or is ready and willing to perform may rescind the obligation if the other does not perform or is not ready and willing to perform (Civil Code of the Phils. Vol. IV Tolentino, 1986 ed p. 176). Under the circumstances the failure of the plaintiff to pay their correlative obligation was not a casual breach but it was a breach of contract tainted with fraud or malice (dolo) as distinguished from mere negligence (culpa) (Luzon Brokerage Co., Inc. vs. Wantime Building Co., Inc. 43 SCRA 93). The amount of P 1,100,000.00, the amount admitted by the defendant to have been paid by the plaintiffs and received by herein defendant is hereby declared as forfeited in favor of the defendants to be applied as rental of the house from June of 1994 up to the time of rendition of judgment and the payment of P 20,000.00 a month from the time of rendition of the judgment until the plaintiff and all persons claiming rights under him shall have finally vacated the premises, and to pay the amount of P 200,000.00 by way of attorney's fees for unjustly refusing to comply with their obligation in bad faith thus forcing the defendants to litigate this matter in court. The amount of P 200,000.00 by way of moral damages and to pay the amount of P 100,000.00 by way of exemplary damages and cost. SO ORDERED.