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Art. 1591. Should the vendor have reasonable grounds to fear the loss of immovable property sold and its

price, he may immediately sue for the rescission of the sale.Should such ground not exist, the provisions of Article 1191 shall be observed. (1503)

(Art. 1591): RIGHT OF VENDOR TO RESCIND SALE OF IMMOVABLE PROPERTY / ANTICIPATORY BREACH- REQUISITES:

(a) There is delivery of immovable property

(b) Vendee has not paid the price

(c) Vendor has reasonable ground to fear the:a. LOSS of PROPERTY; AND

b. LOSS of PRICE

- When there is no such reasonable ground, Art. 1191 shall be observed (when the vendee does not comply with what is incumbentupon him).

Art. 1592. In the sale of immovable property, even though it may have been stipulated that upon failure to paythe price at the time agreed upon the rescission of the contract shall of right take place, the vendee may pay,

even after the expiration of the period, as long as no demand for rescission of the contract has been made

upon him either judicially or by a notarial act. After the demand, the court may not grant him a new term.

(1504a)

(Art. 1592): WHERE AUTOMATIC RESCISSION OF SALE OF IMMOVABLE PROPERTY IS STIPULATEDArt. 1592: In the sale of immovable property, even though it may have been stipulated that upon failure to pay the price at the timeagreed upon the rescission of the contract shall of right take place, the vendee may pay, even after the expiration of the period, aslong as no demand for rescission of the contract has been made upon him either judicially or by a notarial act. After the demand,the court may not grant him a new term.-According to Villanueva and Pineda, the phrase even though means that this provision is also applicable in a case where thereis no stipulation in the contract as to automatic rescission.

Atty. Casio does not agree with them (this time, he agrees with De Leon)

- Vendor is given an option to rescind UPON JUDICIAL OR NOTARIAL DEMAND- However, when there is no judicial or notarial demand, vendee may still pay. Offer to pay is sufficient to defeat vendorsprerogative.

-Vendors right to rescind is not absolute.o Art. 1191, par. 3 provides that the court may grant vendee a new term

o However, if there is already a demand, the court may no longer fix a term.

- Breach must be substantial as to defeat the very object of parties.- NOT APPLICABLE TO:

o Sale on installment of real estate (Caridad Estates vs Santero) governed by Maceda Law

o Mere promise to sell real estate / Conditional sale there can be no rescission in contract to sell

o Cases under RA 6552 (RA 6552 recognizes the vendors right to cancel unqualifiedly in case of industrial lots, commercialbuildings, etc. with a refund of certain percentages of payments made on account of cancelled contract).

*In other words, the vendee in such cases may no longer pay the price after the expiration of the time agreed upon although no demand has

yet been made upon him by suit or notarial act.

Art. 1593. With respect to movable property, the rescission of the sale shall of right take place in the interest

of the vendor, if the vendee, upon the expiration of the period fixed for the delivery of the thing, should not

have appeared to receive it, or, having appeared, he should not have tendered the price at the same time,

unless a longer period has been stipulated for its payment. (1505)

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