SURIA V. IAC Facts: Plaintiffs entered into a Deed of Sale with Mortgage with defendantsover a parcel of land in Laguna.

Defendants violated the terms andconditions of the contract by failing to pay the stipulated installmentsand only one installment was made, despite repeated demands. They formally offered to pay the outstanding balance under the Deed of Saleof Mortgage which was rejected. Issue: (1)Is the subsidiary and equitable remedy of rescission available in the presence of the remedy of foreclosure in the light of Art. 1383. Held: (1) The parties entered into a contract of sale where the vendorobligates himself to transfer the ownership of and to deliver adeterminate thing to the buyer, who is obligated to pay a pricecertain in money or its equivalent. The respondents havecomplied with their part and parted with the title. The buyerfulfilled his end of the bargain when he executed the deed of mortgage. The relationship between the parties is no longer as buyer and seller, because the contract of sale has been perfectedand consummated and it is already of a mortgager and mortgagee.The petitioners breach of obligation is not with respect to theperfected contract of sale but in the obligations created by themortgage contract. The remedy of rescission is not a principalaction retaliatory in character but becomes a subsidiary one which by law is available only in the absence of any other legal remedy.Foreclosure here is not a remedy accorded by law but is a specificprovision found in the contract. Perez v. CA FACTS:COGENERIC issued promissory notes Bill 1298 and Bill 1419 infavor of MOJICA. Bill 1298 is in the amount of P111, 973.58 due onAugust 6, 1974. Bill 1419 is in the amount of P208, 666.67 due onAugust 13, 1974.MEVER films, Inc. borrowed P500, 000.00 from COGENERIC.MEVER issued promissory note NCI0352 in favor of COGENERICdue on August 5, 1974. The promissory note will bear an interest of 14% per annum only upon default.On August 6, 1974, Bill 1298 was rolledover to mature on October 4, 1974.On August 13, 1974, Bill 1419 was rolled-over to mature onOctober 11, 1974.On Sept, 9, 1974, MOJICA assigned Bill NO 1298 and 1419 toMEVER.On Oct. 3 , 1974, MEVER surrendered the 2 bills to COGENERICand asked the latter to compensate the 2 bills to its debt withCOGENERIC.ISSUE:Whether or not there can be compensation.1RULING:For legal compensation to take place, the debts must be due anddemandable.In this case, the 2 bills surrendered by MEVER is not due since theywere rolled over to Oct 4 and Oct 7 respectively.