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Manuel Uy & Sons, Inc. v. Valbueco Inc

Under R.A. No. 6552, the seller has the right to cancel a conditional sale contract for real estate if the buyer fails to make installment payments. The law also provides that a buyer is only entitled to a refund if they have paid at least two years' worth of installments. In this case, the respondent buyer had paid less than two years of installments for two parcels of land and suspended further payments due to disputes with the petitioner seller. Therefore, the respondent is not entitled to a refund under the law.

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233 views1 page

Manuel Uy & Sons, Inc. v. Valbueco Inc

Under R.A. No. 6552, the seller has the right to cancel a conditional sale contract for real estate if the buyer fails to make installment payments. The law also provides that a buyer is only entitled to a refund if they have paid at least two years' worth of installments. In this case, the respondent buyer had paid less than two years of installments for two parcels of land and suspended further payments due to disputes with the petitioner seller. Therefore, the respondent is not entitled to a refund under the law.

Uploaded by

Adrian Kit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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SALES the seller in conditional sales, in

all kinds of real estates (industrial,


PAYMENT IN INSTALLMENT commercial, residential), the right
MANUEL UY & SONS, INC. v. VALBUECO, of the seller to cancel the contract
INCORPORATED upon non-payment of an
installment by the buyer; which is
G.R. No. 179594 September 11, 2013 simply an event that prevents the
obligation of the vendor to convey
DOCTRINE:
title from acquiring binding force.
Under R.A. No. 6552, the right of the buyer o It also provides the right
to refund accrues only when he has paid at of the buyer on
least two years of installments installments in case he
defaults in the payment of
FACTS: succeeding installments.
 Manuel Uy & Sons, Inc, is the  Under the law, the right of the
registered owner of 3 parcels of land. buyer to refund accrues only
Petitioner, as vendor, executed two when he has paid at least two
(2) Conditional Deeds of Sale in favor years of installments.
of Valbueco Inc.  In this case, respondent has paid
 The parties agreed that in both less than two years of
conditional sale, that the purchase installments; hence it is not
price shall be paid in 3 installments entitled to a refund.
with interest within 30 days.
 Respondent was able to pay the down
payments and it complied with the
conditions under the conditional
deeds of sale in releasing the
mortgages of the subject lands,
compelling the unlawful occupants to
surrender possession of the subject
lots, and paying the mortgage with
Philippine Trust Company.
 However, respondent was not
satisfied with the manner by which
petitioner complied with the
stipulations of the conditional deeds
of sale; thus, it suspended further
payment.
 Petitioner sent the respondent a letter
informing the latter of its intention to
rescind the conditional deeds of sale.
 Respondent then filed its complaint
against petitioner for specific
performance and damages, seeking to
compel the latter to accept the
purchase price and execute the
absolute sale.
ISSUE:
Whether or not respondent is entitled to a
refund (as a remedy granted by the Court of
Appeals) - NO
RELEVANT RULING:
R.A. No. 6552, otherwise known as the
Reality Installment Buyer Act, applies only
to contracts to sell.
 The law recognizes the right of

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