The two contracts, couched in the same language were denominated sub-contracts of lease. On August 5, 1934, Juan Fuentes entered into two contracts: one with Hemenegildo Concepcion covering the 1/3 northern portion of said land with an area of 5,000 square meters the other with Gabriel Zari embracing another 1/3, the southeastern portion, thereof, with an identical area of 5,000 square meters.
for P2,250 a parcel of land of 15,000 square meters, Lot 9552, later known as Lot 50-H-5-C-9-J-65-H of the subdivision plan, 2 of Hacienda de Mandaluyong, situated in Barrio Bagong Ilog, Marikina, Rizal, and registered, in the company's name under Torres Title 30794. Sometime before August 5, 1934, a certain Juan Fuentes purchased on installments under Contract 436 from Ortigas, Madrigal y Cia, S.
The factual backdrop starts way back in 1934. If one of the parties fails or refuses, to abide by the compromise, the other party may either enforce the compromise or regard it as rescinded, and insist upon his original demand. These two cases, on direct appeal to this Court on questions of law, 1 turn on the principal issue of whether, or not a compromise agreement, executed between party litigants before the new Civil Code, and which triggered the dismissal of litigation, may be rescinded by the party plaintiffs thereof, to pave the way for the enforcement of their original demand, upon the provisions of Article 2041 of the new Civil Code, which creates for the first time the right of rescission with respect to compromises. HEIRS OF GABRIEL ZARI and HEIRS OF HERMENEGILDO CONCEPCION, plaintiffs-appellees,