Agcaoili v.
GSIS (1988) In reciprocal obligations, neither party incurs in delay if the other does
Petitioners: Marcelo Agcaoili
Respondents: Government Service Insurance System (GSIS)
DOCTRINE:
Art. 1169: In reciprocal obligations, neither party incurs delay if the
other does not comply or is not ready to comply in a proper manner
with what is incumbent upon him.
FACTS:
1. GSIS approved an application of Agcaoli for the purchase of a house and
lot in the GSIS Housing Project at Nangka, Marikina, subject to the
condition that the latter should occupy the house.
2. Agcaoli lost no time in occupying the house but could not stay in it and
had to leave the very next day becucase the house was in a state that
civilized occupation was not possible- no ceilng, stairs, toilet, kitchen.
3. However, Agcaoli asked Villanueva, a homeless friend, to stay in the
premises as some sort of watchman, pending completion of the
construction of the house.
4. Agcaoli after paying the first installment and other fees, refused to make
further payment of other stipulated installments until GSIS had made the
house habitable.
5. However, GSIS refused to do so, opting instead to cancel the award and
demanded the vacation by Agcaoli of the premises.
6. The house and lot was consequently awarded to another applicant so
Agcaoili sued GSIS in CFI of Manila for specific performance with
damages and having obtained a favorable judgment, the cases was
appealed by the GSIS.
ISSUE: WON Agcaoili incurred delay in fulfilling his obligation to make
payments to GSIS
PROVISION: Art. 1169
not comply or is not ready to comply in a proper manner with what is
incumbent upon him
RULING + RATIO: NO, there was no delay on the part of Agcaoli in
making payments to justify cancellation of contract.
1. There was already a perfected contract of sale between the parties.
There was a meeting of minds upon the purchase by Agcaoli of a
determinate house and lot from GSIS at a definite price which is payable
in amortizations and from that moment the parties acquired the right to
reciprocally demand performance.
2. It was the duty of the GSIS, as seller, to deliver the thing sold in a
condition suitable for its enjoyment by the buyer, in other words to deliver
the house subject of the contract in a reasonably livable state.
3. However, GSIS failed to do.
4. Since GSIS failed to fulfill its obligation, and was not willing to put the
house in a habitable state, it cannot invoke Agcaolis suspension of
payment as cause to cancel the contract between them.
5. In reciprocal ient obligation, neither party incur in delay of the other does
not comply or is not ready to comply in a proper manner with what is
incumbent upon him.
6. Nor may the GSIS succeed in justifying its cancellation of the award by
the claim that Agcaoli had not complied with the condition of occupying
the house within three (3) days. The record shows that Agcaoli did try to
fulfill the condition.
DISPOSITION:
WHEREFORE, the judgment of the Court a quo insofar as it invalidates and
sets aside the cancellation by respondent GSIS of the award in favor of
petitioner Agcaoili of Lot No. 26, Block No. (48) 2 of the GSIS low cost
housing project at Nangka, Marikina, Rizal, and orders the former to respect
the aforesaid award and to pay damages in the amounts specified, is
AFFIRMED as being in accord with the facts and the law.