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Fidela Del Castillo Vda. De Mistica vs. Spouses Bernardino Naguiat

FIDELA DEL CASTILLO Vda. DE MISTICA, petitioner, vs. Spouses BERNARDINO NAGUIAT and MARIA PAULINA GERONA-NAGUIAT, respondents.

G.R. No. 137909 | 2003-12-11

D E C I S I O N
 
PANGANIBAN, J.:

The failure to pay in full the purchase price stipulated in a deed of sale does not ipso facto grant the seller the right to rescind the agreement. Unless otherwise stipulated by the parties, rescission is allowed only when the breach of the contract is substantial and fundamental to the fulfillment of the obligation.
 
The Case
 
Before us is a Petition for Review[1] under Rule 45 of the Rules of Court, seeking to nullify the October 31, 1997 Decision[2] and the February 23, 1999 Resolution[3] of the Court of Appeals (CA) in CA-GR CV No. 51067. The assailed Decision disposed as follows:

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