Intestate Estate of the Late Ricardo P. Presbiterio, Sr. vs.

Court of Appeals Facts: Petition for review on certiorari of the decision of the Court of Appeals. Presbiterio, Sr. entered into two contracts with respondent Canoso regarding the negotiation of with Land Bank of the Philippines and Ministry of Agrarian efor! for the sale of the for!er"s #acienda Maria in $orth Cotabato and the other being the arrange!ent of co!pensation for respondent Canoso upon the fulfill!ent of the obligation upon the %&'(day period given to hi!, %).*+ of the proceeds of the sale shall be paid to Canoso. A part of the proceeds were released and Canoso was not given his share. Canoso files a suit against Presbiterio, Sr. Presbiterio, Sr. contends that Canoso had no right to be co!pensated since he defaulted when he failed to fulfill the obligation in %&' days. Issue: ,hether Canoso lost his right to be co!pensated since he failed to fulfill the obligation within %&' days, albeit the late co!pliance. Held: %. -bligations arising fro! contracts have the force of law between the parties and should be co!plied with in good faith. A reciprocal obligation arose between the parties, albeit the late co!pliance of Canoso, he is still entitled to co!pensation. Moreover, Presbiterio, Sr. initially authori.ed the release of funds for pay!ent to Canoso, establishing the co!plete acceptance of the sa!e to the fullfil!ent of Canoso"s obligation. &. /he collection of proceeds was not a!ong the stipulations of the parties, Canoso had already fulfilled his part of the obligation to negotiate the sale of said #acienda Maria. 3. Rescission of the contract is not permitted for slight or causal breach. No substantial breach has been committed in the case at bar. Substantial compliance is in order, and Canoso has fulfilled the obligation in good faith.