SPOUSES BONROSTRO v.

SPOUSES LUNA
G.R. No. 172346
July 24, 2013
Delay/Default
FACTS:
Respondent Luna entered into a Contract to Sell with Bliss Development Corporation
involving a House and Lot. A year after, respondent Luna entered into another Contract to
Sell with petitioner Bonrostro concerning the same property. After the execution of the
contract, Bonrostro immediately took possession of the property. However, except for the
initial downpayment of P200,000, Bonrostro failed to pay any of the stipulated subsequent
amortization payments. So, Petitioner Luna filed a complaint of rescission of contract with
the Bonrostros. In their answer, the Bonrsotros allege that Luna failed to show up during their
agreed date of payment and that they received no reply in their letter expressing their desire
to settle such obligation. Hence they assert that they should not be assessed any interest
subsequent to the date of such tender. Neither should they be ordered to pay interest which
covers the amortizations paid by Spouses Luna to Bliss, because it was Spouses Luna
themselves who prevented such fulfillment by instructing Bliss not to accept amortization
payments from anyone.
ISSUE:
Whether or not Respondent Bonrostro incurred delay in the performance of its obligation, and
is therefore liable to pay damages. YES.
HELD:
**Since the contract entered into is a Contract to Sell, rescission is not the solution. It is
governed by RA 6552 or the Maceda Law, which states that
In case where less than two years of installment were paid, the seller shall
give the buyer a grace period of not less than sixty days from the date the
installment became due. If the buyer fails to pay the installments due at the
expiration of the grace period, the seller may cancel the contract after thirty
days from the receipt of the buyer of the notice of cancellation or demand for
rescission.
So, while the Spouses Luna sent the letters rescinding the contract for non-payment, those are
not considered valid and effective since they were made within the 60-day grace period. The
cancellation is invalid, it remains valid and subsisting.
**The letter manifesting intent to pay is not a tender of payment. Tender of payment is the
manifestation by the debtor of a desire to pay an obligation. If such tender is refused without
just cause, the tender of payment will discharge a debtor from obligation to pay only after a
valid consignation of the amount with the proper court. Consignation is the deposit of the
amount with a judicial authority according to the rules prescribed by law, after the tender of
payment has been refused.
In the case, the letter considered as the tender of payment, not accompanied by the means of
payment, and the debtor not taking any immediate step to make a consignation, it produces

Prepared By: Mariel Angeli R. Quines

no effect, and consequently, the interest is not suspended from the time of such tender.
Spouses Bonrostro are still liable for such interest.
**Regarding the payment of interest on the amount which spouses Luna paid to Bliss as
amortizations, spouses Bonrostro assert that they were prevented by Luna from fulfilling such
obligation, invoking the article on the Civil Code on constructive fulfillment the condition
shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. However, the
Court finds that this provision is inapplicable to the instant case because Luna is the obligee,
not the obligor. There was no showing that any attempt at payment of Bonrostro was refused
by Bliss, nor was there any showing that Bliss actually heeded Lunas instruction.
Clearly, Bonrostro was remiss in paying such amortization, so Luna was constrained to pay
such to avoid the cancellation of the earlier Contract to Sell between Luna and Bliss. The
reimbursement of the payment to Luna is proper, considering that because of such payment
by Luna, Bonrostro is spared from interests and penalties which Bliss wouldve imposed if
such amortizations remained unpaid.
Delay in the performance of an obligation is looked upon with disfavor because when a party
to a contract incurs delay, the other party who performs his part of the contract suffers
damages thereby. Spouses Luna suffered damages brought about by the failure of spouses
Bonrostro to comply with their obligation on time. Under the Civil Code, if the obligation
consists in the payment of a sum of money, and the debtor incurs delay, the indemnity for
damages shall be the payment of interest agreed upon.

Prepared By: Mariel Angeli R. Quines