If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.
Kung ang obligasyon ay natupad o nagawa ang importanteng parte ng obligasyon, ang gumawa ay maaring maningil na tulad sa pagsisingil niya kung ang obligsyon any natapos, maliit lamang ang nawala sa nagpagawa.
Discussion:
Substantial Compliance
Substantial compliance means that the debtor, when in good faith, has attempted to perform the contract or prestation, but through oversight, or any excusable neglect, he failed to make a full and complete performance, for which the other party may be indemnified, there is already a substantial compliance and the debtor shall recover as though there had been a strict and complete fulfillment of the obligation.
The omission or defect must be slight, unimportant, or not so material in the obligation as to frustrate the accomplishment of the intended work. The omission or defect must also be in good faith, that is, it was not intended by the debtor.
Right to Rescind
The right to rescind if there is substantial compliance cannot be invoked. This is because the obligee has already benefited from the obligation.
Case Illustration
Gaboya vs Cui 38 SCRA 85 (1971)
Ponente: JBL Reyes
Facts:
Don Mariano Cui is the owner of three lots situated in the City of Cebu. He sold these lots to his three children, however, the sale of the third lot was canceled due to the lack of funds of the vendee. Because of the cancellation, Don Cui and his children Mercedes and Antonio became co-owners of the whole mass in equal portions.
In the deed of sale, Don Cui retained for himself the usufruct of the property. Don Cui had his property rented, and to the rest of the property, a 12-door commercial building was constructed. To finance the construction, the whole three lots was mortgaged. However, Don Cui did not join in the construction of the commercial building.
When Don Cui was declared by law as incompetent on the petition filed by Rosario, the child who was one of the original vendees, Victorino Reyes was appointed as the guardian of his property.
The guardian thereafter filed a complaint alleging that the usufructuary right reserved in favor of Don Mariano Cui extends to and includes the rentals of the building constructed by Antonio Cui and Mercedes Cui on the land sold to them by their father; and that the other children of Cui retained those rentals to themselves; that the usufructuary rights of the father were of the essence of the sale and their violation entitled him to rescind the sale. The complaint prayed either for the rescission with accounting, or for delivery of the rentals of the building with interests, attorney’s fees and costs.
Issue: Whether or not the rescission should be granted?
Held:
No.
The right to rescind a contract in reciprocal obligations cannot be invoked when there has been only slight breaches of the obligation because if the performance is substantial, that is equivalent to fulfillment or payment of the obligation. The Court may even allow a person in default some time within which to fulfill the obligation.
Obligations and Contracts 