Short answer. Yes. Article 1592 lets the buyer pay even after the deadline passes, despite an automatic-rescission clause, as long as no demand for rescission has been made judicially or by a notarial act. The automatic-rescission language in the contract does not by itself end the buyer's right to pay.
What the law says
the vendee may pay, even after the expiration of the period, as long as no demand for rescission of the contract has been made upon him either judicially or by a notarial act
Civil Code, Article 1592 — Sale of Realty: Payment Despite an Automatic-Rescission Clause. Read the full provision →
What the law says
After the demand, the court may not grant him a new term.
Civil Code, Article 1592 — Sale of Realty: Payment Despite an Automatic-Rescission Clause. Read the full provision →
The automatic-rescission clause does not act on its own
Article 1592 directly addresses contracts that claim to rescind themselves the moment payment is late. Even where it may have been stipulated that upon failure to pay the price at the time agreed upon the rescission of the contract shall of right take place, the law still gives the buyer a window afterward. The vendee may pay, even after the expiration of the period, as long as no demand for rescission of the contract has been made upon him either judicially or by a notarial act. The clause's promise of automatic rescission does not, by itself, cut off the buyer's ability to cure the default.
A demand has to actually be made, in one of two specific forms
The article names exactly two ways a seller can end the buyer's window to pay: a judicial demand, meaning one made through the courts, or a notarial act, meaning a formal demand executed before a notary. Informal reminders, a text message, or a verbal warning that payment is overdue do not qualify as the kind of demand this article requires before the buyer's right to pay late is cut off.
Once the demand is made, the door closes
The protection is not indefinite. After the demand, the court may not grant him a new term. Once the seller has made a proper judicial or notarial demand, the buyer's opportunity to pay under this article ends, and even a court cannot extend a new period for the buyer at that point. The demand functions as the clear line between the buyer still having a chance to cure and the seller being entitled to treat the sale as rescinded.
What this means for a contract with an automatic-rescission clause
If your contract says rescission happens automatically upon non-payment, Article 1592 means the seller still needs to take the affirmative step of a judicial or notarial demand before that rescission is actually enforceable against a buyer who is willing to pay late. Simply relying on the contract's own automatic-rescission language, without ever making that demand, leaves the buyer's right to pay technically intact under this article.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Abelardo Valarao, et al. vs. Court of Appeals, et al, G.R. No. 130347, March 3, 1999 — read the decision on LawPhil →
- Karen Nuñez Vito, et al. vs. Norma Moises-Palma, G.R. No. 224466, March 27, 2019 — read the decision on LawPhil →
- Games and Garments Developers, Inc. vs. Allied Banking Corporation, G.R. No. 181426, July 13, 2015 — read the decision on LawPhil →
- Juan P. Cabrera vs. Henry Ysaac, G.R. No. 166790, November 19, 2014 — read the decision on LawPhil →