1. The parties admit the personal and corporate circumstances of each other as found in the complaint.
2. The spouses Juan P. de Villa, Jr. and Rosalia de Villa, parents-in-law of the plaintiff, were the former owners of Lot No. 13, Block 21-A, covered by TCT No. 280808 of the Registry of Deeds of Quezon City. This property was previously mortgaged to the Ayala Investment and Development Corporation to secure an obligation of P500,000.00. For failure of the said mortgagors to pay upon maturity, the mortgage was foreclosed and consequently, defendant acquired the property as highest bidder in the auction sale, following the foreclosure. No redemption having been exercised by the mortgagors, the defendant was able to consolidate its title over the property.
3. Plaintiff, who lives with his in-laws, negotiated to purchase the property from defendant. He first made an offer on August 9, 1985 (Annex A, complaint) for P900,000.00 but defendant asked plaintiff to improve his offer. Subsequently, the plaintiff and Mr. Manuel Ablan, then Manager of the Loans Adjustment and Special Asset Department of the defendant arrived at P1,250,000.00 as the purchase price, with 30% downpayment, and the balance, payable in cash, upon execution of the Deed of Sale. Plaintiff confirmed his offer in his letter to the defendant dated November 27, 1985 (Annex B, complaint; Annex, 1, Answer), with his check payment of P375,000.00.
4. Defendant received plaintiff's initial payment of P375,000.00 on November 28, 1985, for which a receipt was issued under defendant's Official Receipt No. 112375 (Annex C, Complaint).
5. On December 4, 1985, defendant wrote to the plaintiff, informing him of the terms and conditions of the sale, as approved by the management of defendant, which, among other things, gives plaintiff up to January 4, 1986 within which to pay the balance of P875,000.00 (Annex D, Complaint, Annex 2, Answer).
6. Plaintiff asked for extensions within which to pay the balance. The first was made on January 8, 1986 (Annex 3, Answer), another on April 22, 1986 (Annex 4, Answer). Defendant agreed to extend the payment up to June 30, 1986, in accordance with defendant's letter dated May 5, 1986, requiring plaintiff, in addition, to pay interest at 24% per annum on the unpaid balance (Annex 5, Answer).
7. Plaintiff, not having been able to meet defendant's deadline (June 30, 1986), defendant wrote a letter to plaintiff dated September 6, 1986 (Annex 6, Answer) declaring itself (defendant) free to sell the property to other buyers and informing plaintiff that he could already claim his initial payment of P375,000.00
8. In response, plaintiff, in its letter dated October 22, 1986 (Annex 7, Answer), asked for an extension of another six (6) months, within which to pay the balance of P875,000.00. Defendant denied plaintiff's request and asked plaintiff to get back his P375,000.00, in defendant's letter to plaintiff dated November 7, 1986 (Annex 8, Answer).
9. On January 5, 1987, defendant wrote plaintiff, reiterating its request that plaintiff get back his P375,000.00 (Annex 9, Answer) and on February 12, 1987 (Annex E, Complaint, Annex 10, Answer), defendant mailed to plaintiff a cashier's check for P375,000.00, payable to him. Plaintiff replied in March 6, 1987 (Annex F, Complaint, Annex 11, Answer), declining acceptance of the P375,000.00 and insisting therein the defendant allow plaintiff to pay the balance of P875,000.00.
10. Subsequently, defendant informed plaintiff that the property is being sold for P1,600.00, in its Answer. Plaintiff then wrote on April 1, 1987 to Mr. Xavier Loinaz of defendant (Annex 13, Answer) asking that original price of P1,250,000.00 be maintained. Defendant again wrote to plaintiff on May 29, 1987 (Annex 14, Answer) reiterating its position that defendant was willing to sell at P1,600,000.00.
11. Plaintiff, in its letter to defendant dated July 21, 1987, (Annex G, Complaint, Annex 15, Answer), returned the cashier's check earlier issued by defendant in favor of plaintiff. Defendant acknowledged receipt of said letter but declined to take back the said check as expressed in defendant's letter of the same date (Annex 16, Answer).
12. The cashier's check of P375,000.00 payable to plaintiff remains uncashed to date and is still in the hands of the plaintiff, after defendant refused to accept its return.
13. Plaintiff admits that Annexes 1 to 16 attached to the Answer are true and faithful copies of the originals. Defendant likewise admits that Annexes A to G attached to the complaint are true and faithful copies of the originals. Said Annexes are hereby adopted by the parties as part of this Stipulation of Facts and may be received in evidence without further authentication or identification. (Rollo, pp. 21-24)
