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[1] Under Rule 45 of the 1997 Rules of Civil Procedure.

[2] Penned by Judge Arcadio D. Fabria.

[3] The spouses Ramos and the spouses Heruela are collectively referred to in this Decision as 'the parties.

[4] P50 per square meter.



[5] Rollo, pp. 15-24.

[6] Otherwise known as the 'Realty Installment Buyer Protection Act.

[7] Rollo, pp. 23-24.

[8] Ibid., p. 25.

[9] Ibid., p. 126.



[10] Universal Robina Sugar Milling Corp. v. Heirs of Teves, 438 Phil. 26 (2002).

[11] Adelfa Properties, Inc. v. CA, 310 Phil. 623 (1995).

[12] Ibid.

[13] Ibid.

[14] Chua v. Court of Appeals, 449 Phil. 25 (2003).




[15] Records, p. 178.

[16] 109 Phil. 1 (1960).

[17] G.R. No. 63745, 8 June 1990, 186 SCRA 400.


[18] Records, p. 24.




[19] Article 1191 provides:


Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him.


The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible.


The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period.


This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law.

[20] Article 1592 provides:


Art. 1592. In the sale of immovable property, even though it may have been stipulated that upon failure to pay the price at the time agreed upon the rescission of the contract shall of right take place, the vendee may pay, even after the expiration of the period, as long as no demand for rescission of the contract has been made upon him either judicially or by a notarial act. After the demand, the court may not grant him a new term.

[21] G.R. No. 125347, 19 June 1997, 274 SCRA 461, citing the Resolution on Second Motion for Reconsideration, Luzon Brokerage Co., Inc. v. Maritime Building Co., Inc., No. L-25885, 16 November 1978, 86 SCRA 305.



[22] 443 Phil. 385 (2003).

[23] Ibid.



[24] Article 2209 provides:


Art. 2209. If the obligation consists in the payment of a sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum.

[25] Consing v. Court of Appeals, G.R. No. 143584, 10 March 2004, 425 SCRA 192; Eastern Shipping Lines, Inc. v. Court of Appeals, G.R. No. 97412, 12 July 1994, 234 SCRA 78.

[26] Records, p. 4.

[27] TSN, 8 February 2000, p. 20.

[28] Article 2208 provides:


Art. 2208. In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except:


(1)     When exemplary damages are awarded;

(2)     When the defendant's act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest;

(3)     In criminal cases of malicious prosecution against the plaintiff;

(4)     In case of a clearly unfounded civil action or proceeding against the plaintiff;

(5)     Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff's plainly valid, just and demandable claim;

(6)     In actions for legal support;

(7)        In actions for the recovery of wages of household helpers, laborers and skilled workers;

(8)        In actions for indemnity under workmen's compensation and employer's liability laws;

(9)     In a separate civil action to recover civil liability arising from a crime;

(10)  When at least double judicial costs are awarded;

(11) In any other case where the court deems it just and equitable that attorney's fees and expenses of litigation should be recovered.


In all cases, the attorney's fees and expenses of litigation must be reasonable.

[29] Liu v. Loy, Jr., 453 Phil. 232 (2003).

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