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 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

Held