Movido vs Pastor

 GR No. 172279 February 11, 2010

Facts:

Pastor alleged that he and Movido executed a contract to sell where Movido agreed to sell a parcel of his land in Cavite. Pastor also alleged that the contract provided that if a Napocor power line transvered the subject lot, the purchase price would be lowered. He also claimed that Movido undertook the cause of the survey of the property in order to determine the portion affected by the Napocor power line. The petitioner also alleged that he already paid more than half of the price and that he was willing and ready to pay the balance of the purchase price but due to petitioner’s refusal to have the property surveyed despite incessant demands, his unpaid balance could not be determined with certainty. Movido alleged that there original negotiation for the sale of his property involved a smaller lot area and that Pastor was in delay in paying several installments and that this is a material breach because they agreed that the survery of the property would only be done after Pastor would have paid the 7^th installment.

Issue:

Whether or not the validity of a contract will depend on certain stipulations in it

Ruling:

No, the validity of a contract will not depend on certain stipulations in it. In this case, the 2 contracts that were executed by the parties would reveal that the payment of the purchase price does not depend on the survey of the property. In other words, the purchase price should be paid whether or not the property is surveyed. The survey of the property is important only insofar as the right of respondent to the reduction of the purchase price is concerned. On the other hand, the survey of the property to determine the metes and bounds of the 1,731 sq. m. portion that is excluded from the contract as well as the portions covered by the kasunduan which will be subject to reduction of the purchase price, is also not conditioned on the payment of any installment.