28. Velasco v. Court of Appeals, 51 SCRA 439, June 29, 1973 PDF

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Republic of the Philippines SUPREME COURT ManilaEN BANCG. No. L-31018 June 29, 1973LORENZO VELASCO AND SOCORRO J. VELASCO vs. HONORABLE COURT OF APPEALS and MAGDALENA ESTATE, INC.,FACTS1. On November 29, 1962 the Lorenzo Velasco and Magdalena Estate Inc. entered into a Contract of Sale for a piece o...

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Republic of the Philippines SUPREME COURT Manila EN BANC G.R. No. L-31018

June 29, 1973

LORENZO VELASCO AND SOCORRO J. VELASCO vs. HONORABLE COURT OF APPEALS and MAGDALENA ESTATE, INC., FACTS 1. On November 29, 1962 the Lorenzo Velasco and Magdalena Estate Inc. entered into a Contract of Sale for a piece of land with a total area of 2,059 sq. m. located at No. 39 corner 6th Street and Pacific Avenue, New Manila, Quezon City, for a total purchase price of P100,000.00. 2. It is alleged by Velasco that the terms of the agreement were that he was to give a down payment of P10,000.00 to be followed by P20,000.00 and the balance of P70,000.00 would be paid in installments, the equal monthly amortization of which was to be determined as soon as the P30,000.00 down payment had been completed. 3. That Velasco paid of P10,000.00 on November 29, 1962 and that when on January 8, 1964 he tendered the payment of the additional P20,000.00 to complete the P30,000.00, Magdalena Estate refused to accept the payment and that it likewise refused to execute a formal deed of sale obviously agreed upon. Thus Velasco filed a complaint for Specific Performance before the Court of First Instance of Quezon City. 4. Magdalena Estate rebuffed the claim of Velasco and it stated that it never had any transactions or contractual relations with Velasco regarding the property in question. It stated that the subject property was being leased by Socorro Velasco who on November 29, 1962, went to the office of the defendant corporation indicated her desire to purchase the lot. 5. That the defendant indicated its willingness to sell the property at the price of P100,000.00 under the condition that a down payment of P30,000.00 be made, P20,000.00 of which was to be paid on November 31, 1962, and that the balance of P70,000.00 including interest a 9% per annum was to be paid on installments for a period of ten years. 6. On November 29, 1962 Socorro paid 10,000, short of the alleged 20,000 agreed down payment, the same was accepted merely as deposited and upon request of Socorro Velasco the receipt was made in the name of her brother-in-law of Lorenzo Velasco. 7.

On January 8, 1964 Socorro tendered the 20,000 down payment but defendant refused to accept because the latter considered the contract rescinded on the account the former’s failure to complete the down payment on or before December 31, 1962.

8. On November 3, 1968, the Court of First Instance of Quezon City, after hearing on the merits, rendered a decision, dismissing the complaint filed by Lorenzo Velasco against the Magdalena Estate, Inc. on the basis that the alleged purchase and sale agreement "was not perfected". ISSUE Whether or not a Contract of Sale was perfected between Lorenzo Velasco and Magdalena Estate Inc.? RULING YES, there is NO Contract of Sale that was perfected between Lorenzo Velasco and Magdalena Estate Inc....