8/9/2019 479 Scra 462

1/1

GR No. 163075 (479 SCRA 462)

AYALA LIFE ASSURANCE, INC., petitioner, vs. RAY BURTN !E"EL#$ENT CR#RATIN,respondent.

FACTS:On December 22, 1995, Ayala Lie Ass!rance, "nc., petitioner, and #ay $!rton De%elopment

Corporation, respondent, entered into a contract denominated as a &Contract to Sell,& 'it( a &Side A)reement& o e%en date. "n t(ese contracts, petitioner a)reed to sell to respondent a parcel oland, in t(e amo!nt o *9+,5,., '(ere t(e 2- s(all be paid on t(e contract date, / notlater t(an 0an!ary -, 199- and in an installment basis or 5 years.

T(e contract contains a stip!lation in para)rap(s + and +.1 or an &%ent o Dea!lt.& "t pro%idest(at in case t(e p!rc(aser 3respondent4 ails to pay any installment or any reason not attrib!tableto t(e seller 3petitioner4, t(e latter (as t(e ri)(t to assess t(e p!rc(aser a late penalty interest ont(e !npaid installment at t'o 324 percent per mont(, comp!ted rom t(e date t(e amo!nt becamed!e !ntil !ll payment t(ereo. And i s!c( dea!lt contin!es or a period o si 3-4 mont(s, t(e seller (as t(e ri)(t to %&'% t(e contract 'it(o!t need o co!rt declaration by )i%in) t(e p!rc(aser a'ritten notice o cancellation. "n case o s!c( cancellation, t(e seller s(all *+*' to t(e p!rc(asert(e amo!nt (e recei%ed, less penalties, !npaid c(ar)es and d!es on t(e property.

#espondent paid t(irty 3+4 do'n payment and t(e 6!arterly amorti7ation, incl!din) t(e one t(atell d!e on 0!ne 22, 1998.

o'e%er, on A!)!st 12, 1998, respondent notiied petitioner in 'ritin) t(at it 'ill no lon)er contin!eto pay d!e to t(e ad%erse eects o t(e economic crisis to its b!siness. #espondent t(en ased or t(e immediate cancellation o t(e contract and or a re!nd o its pre%io!s payments as pro%ided int(e contract.

*etitioner re!sed to cancel t(e contract to sell. "nstead, on ;o%ember 25, 1999, it iled 'it( t(e#e)ional Trial Co!rt, $ranc( --,