Agcaoili v. GSIS

G.R. No. L-30056 August 30, 1988
[Narvasa, J.:]

Facts: Petitioner was awarded the house by GSIS on the condition that he should reside on it immediately. As the house is uninhabitable, petitioner vacated the area after 1 day and refused to pay further installments until respondent make it habitable. Respondent cancelled the award.

Issue: W/n the petitioner incurred delay in fulfilling his obligations

HELD: In reciprocal obligations, a party incurs delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. Respondent did not fulfill its obligation to deliver the house in a habitable state, therefore, it cannot invoke the petitioner’s suspension of payment as a cause to cancel the contract between them. There was a perfected contract of sale, it was then the duty of GSIS as seller to deliver the thing sold in a condition suitable for its enjoyment by the buyer and for the purpose contemplated. The house contemplated was one that could be occupied for purpose of residence in reasonable comfort and convenience.