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30 Agcaoli vs.

GSIS GR No L-30056 August 30, 1988

Facts:

Herein respondent GSIS approved the application of petitioner Agcaoli for purchase of a house
and lot in the GSIS Housing Project with the condition that the petitioner should occupy the
house within 3 days. However, despite immediately complying with the condition placed upon
him, Agcaoli found the house to be uninhabitable. GSIS asked the petitioner to pay monthly
amortizations and other fees which the latter paid during the first month. After having refused to
make further payments until respondent completed the housing unit, Agcaoli was demanded to
vacate the premises. Petitioner sued GSIS in the CFI of Manila for specific performance with
damages and was favored by the court. GSIS then made an appeal but such appeal failed.

Issue(s):

Whether the cancellation made by GSIS was just and proper.

Ruling:

There was a perfected contract between the parties where GSIS, as the seller, failed to perform
the duty to deliver the things sold in a condition suitable for its enjoyment by the buyer Agcaoli.
Neither has GSIS justified its cancellation of the award to Agcaoli by claiming that the latter had
not complied with the condition of occupation within 3 days. It was shown that Agcaoli did try to
fulfill such condition but found the housing unit to be uninhabitable and had to leave the
following day. The Court took into account the respective interests of the parties in its decision of
the case.

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