13.

Prlscilla purchased a condominium unit in Makati City from the Cltlland Corporation for a price of IMO Million, payable P3 Million down and the balance with interest thereon at 14% per annum payable in sixty (60) equal monthly Installments of PI 98.333.33. They executed a Deed of Conditional Sale in which it Is stipulated that should the vendee fail to pay three (3) successive installments, the sale shall be deemed automatically rescinded without the necessity of judicial action and all payments made by the vendee shall be forfeited in favor of the vendor by way of rental for the use and occupancy of the unit and as liquidated damages. For 46 months, Prlscilla paid the monthly installments religiously, but on the 47th and 48th months, she failed to pay. On the 49th month, she tried to pay the Installments due but the vendor refused to receive the payments tendered by her. The following month, the vendor sent her a notice that it was rescinding the Deed of Conditional Sale pursuant to the stipulation for automatic rescission, and demanded that she vacate the premises. She replied that the contract cannot be rescinded without judicial demand or notarial act pursuant to Article 1592 of the Civil Code.

a) Is Article 1592 applicable? (3%)
b) Can the vendor rescind the contract? (2%)