Vda. De Mistica vs.

Naguiat
418 SCRA 73
Art. 1182. Potestative Condition

Issue/Scope
Potestative Condition under Art. 1182 in relation to Art. 1191 of Civil Code

Facts
Predecessor-in-interest of Petitioner and herein Defendants entered into a contract
to sell in which the latter prayed the initial payment and undertake to pay the
remaining by installment within 10 years subject to 12% interest per annum
Petitioner filed a complaint for rescission alleging failure and refusal of
Defendants to pay the balance constitutes a violation of the contract which
entitles her to rescind the same
Petitioner argues that period for performance of obligation cannot be extended to
10 years because to do so would convert the obligation to purely potestative

Held
Under Art. 1191 of Civil Code, the right to rescind an obligation is predicated on
violation between parties brought about by breach of faith by one of them.
Rescission, however, is allowed only when the breach is substantial and fundamental
to the fulfillment of the obligation
In this case, no substantial breach � in the Kasulatan, it was stipulated that
payment could be made even after 10 years from execution of contract, provided they
will pay the 12% interest
Civil Code prohibits purely potestative, suspensive, conditional obligation that
depend on the whims of the debtor. Nowhere in the deed that payment of purchase
price is dependent whether respondents want to pay it or not, the fact that they
already made partial payment shows that parties intended to be bound by the
Kasulatan