Caridad Estates v Santero
Facts:
On November 28, 1934, the Caridad Estates, Inc., leased to Pablo Santero cadastral
lots for fish pond and salt bed purposes. Three months prior to the expiration of the
lease, Caridad sold the lots to Santero payable in installments. Santero made payments
but Caridad refused to aaccept the balance on the ground that the contract of sale has
been cancelled. The lot was then sold to Sison and Santero was demanded to leave the
premises.
Issue: W/N rescission can be had due to Santero’s failure to pay
Held:
No. The contract is a sale in installment, in which the parties have laid down the
procedure to be followed in the event the vendee failed to fulfill his obligation. There is,
consequently, no occasion for the application of the requirements of article 1504. By the
stipulation of the parties in case of failure to pay by the vendee, the vendr has two
remedies, (1) considering the total remaining purchase price due and payable and
recoverable by an action at law or (2) recovering the possession of the property and all
sums paid by the vendee shall be regarded as rental for the use and occupancy of the
property.