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Moonwalk Development and Housing Corporation FACTS: Plaintiff SSS approved the application of Defendant Moonwalk for a loan of P30,000,000 for the purpose of developing and constructing a housing project. Out of P30,000,000 Moonwalk. approved loan, the sum of P9,595,000 was released to defendant
A third Amendment Deed of Mortgage was executed for the payment of the amount of P9,595,000. Moonwalk made a total payment of P23,657,901.84 to SSS for the loan principal of P12,254,700. After settlement of the account, SSS issued to Moonwalk the release of Mortgage for Moonwalks Mortgaged properties. In letter to Moonwalk, SSS alleged that it committed an honest mistake in releasing defendant. That Moonwalk has still 12% penalty for failure to pay on time the amortization which is in the penal clause of the contract. Moonwalks counsel told SSS that it had completely paid its obligation to SSS and therefore there is no recovery of any penalty.
ISSUE: Is the penalty demandable even after the extinguishment of the principal obligation? HELD: No. There has been a waiver of the penal clause as it was not demanded before the full obligation was fully paid and extinguished. Default begins from the moment the creditor demands the performance of the obligation. In this case, although there were late amortizations there was no demand made by SSS for the payment of the penalty hence Moonwalk is not in delay in the payment of the penalty. No delay occurred and there was no occasion when the penalty became demandable and enforceable. Since there was no default in the performance of the main obligation-payment of the loan- SSS was never entitled to recover any penalty. If the demand for the payment of the penalty was made prior to the extinguishment of the obligation which are: 1. e principal obligation 2. The interest of 12% on the principal obligation 3. The penalty of 12% for late payment for after demand, Moonwalk would be in delay and therefore liable for the penalty.
AGCAOILI V GSIS 165 SCRA 484 (1988) FACTS: GSIS approved the application of appellee Agcaoili for the purchase of a house and lot in the GSIS Housing Project in Marikina. Said application was subject to the conditions that he should immediately occupy said house failure to comply would mean revocation of his award. Agcaoili lost no time in occupying the house but he could not stay in it because the house was uninhabitable (no ceiling, stairs, double walling, lighting facilities, water connection, bathroom, toilet, kitchen, drainage). Agcaoili, then, asked a homeless friend (a certain Villanueva) to stay in the premises as a watchman, pending the completion of the construction of the house. Subsequently, GSIS asked Agcaoili to pay monthly amortizations in the amount of P35.56 and other fees. Agcaoili paid the first monthly amortizations and incidental fees, but refused to make further payments until and unless GSIS completed the housing unit. Thereafter, GSIS cancelled the award and required Agcaoili to vacate the premise. The house and lot was consequently awarded to another applicant. Agcaoili, then, filed before the CFI an action for specific performance and damages. The CFI rendered in favor of Agcaoili. GSIS appealed said judgment. GSIS argument: 1. Said unit was sold in the condition and state of completion, Agcaoili is deemed to have accepted the same in the condition he found it when he accepted the reward 2. Perfection of the contract of sale between GSIS and Agcaoili was conditioned upon the latters immediate occupancy of the house. Since Agcaoili failed to comply with this condition, no contract was perfected between them 3. Agcaoilis act of placing Villanueva as watchman over the premises without prior or subsequent knowledge or consent of GSIS was a repudiation on the part of Agcaoili of the award and a deprivation of GSIS of reasonable rental value of the property ISSUE: W/N the cancellation by GSIS of the award in favor of Agcaoili just and proper HELD: NO.It was the duty of the GSIS, as seller, to deliver the thing sold in a condition suitable for its enjoyment by the buyer for the purpose contemplated. There would be no sense to require the awardee to immediately occupy and live in a shell of a house, structure consisting only of four walls with openings, and a roof. GSIS had an obligation to deliver to Agcaoili a reasonably habitable dwelling in return for his undertaking to pay the stipulated price. Since GSIS did not fulfill that obligation, and was not willing to put the house in habitable state, it cannot invoke Agcaoilis suspension of payment of amortizations as cause to cancel the contract between them. It is axiomatic that In reciprocal obligations, neither party incurs in delay if the other does not comply in a proper manner with what is incumbent upon him. The clause in the contract the Agcaoili is supposed to occupy said property presupposes that said property is inhabitable. Since GSIS did not fulfill that obligation, and was not willing to put the house in habitable state, it cannot invoke Agcaoilis suspension of payment of amortizations as cause to cancel the contract between them.
Likewise, GSIS cannot blame Agcaoili for the imprecision and vagueness of the contract since it was GSIS which caused the contract to come into being by its written acceptance of Agcaoilis offer to purchase. If there is any ambiguity in the said contract, it should be resolved against the one who prepared it (GSIS) contracts of adhesion.