Preliminary Agreement Breach and Right to Rescind

The case concerned a dispute where an individual, having signed a preliminary sales agreement for a property, later refused to execute the final deed, prompting the seller to seek judicial annulment of the agreement and damages. The court of appeal had confirmed the lower court's decision to void the agreement and award damages, finding that the initial refusal constituted a breach justifying rescission. The highest court quashed the decision, reasoning that the refusal to sign the final deed, when the preliminary agreement had not established an irrevocable commitment to sell or purchase or stipulated a penalty for unilateral withdrawal, did not automatically constitute a breach justifying rescission and damages, as the parties were only obligated to negotiate in good faith toward the final act.